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This percentage of people who
fail to pay off on time are the exact people the no interest
credit card plan was designed to target. Since the credit
card companies already know the pre determined percentage of
consumers that will fail to meet the deadline, they already
have a good idea of how much this no interest campaign will
profit them. They know no matter how many consumers have a
stable job and a stable life something is going to happen to
a certain percentage to make them fail to meet their no
interest deadline. The penalty that’s pointed out in that difficult to read and often even more difficult to understand fine print usually says something like this; “If you fail to meet the deadline you will have to pay 30% interest.” “Not only do you have to pay 30% interest, you have to pay 30% interest from the day you got your no interest credit card.” That’s one stiff penalty right there. It’s not difficult to see why the no interest credit card industry makes such a huge profit. No interest credit cards are a very cunning tool to make the credit card industry a serious profit. On the other hand no interest credit cards can be an opportunity for cunning consumers to get over by paying no interest. There are some ways to help make sure you don’t miss your no interest credit deadline. One way is to set up an auto-pay payment plan through your bank. Let’s say you got a no interest credit card with a 1 year deadline. Let’s say you purchased an item that cost $1,276 with your new no interest card. First think pay off the $76, then set up your auto-payment plan to pay $100 per month. Make sure you set this up so you meet the deadline at least one week prior to the no interest credit card pay-off deadline. It’s also a good idea to set your bank account up with an over draft protection plan just incase you fail to keep enough money in the account to pay a bill. You can often get such a protection plan for $15 per year. It’s likely better to pay an extra $15 than to chance getting slapped in the face with extreme penalties of 30% interest or more. The down side to these types of “no credit check credit cards” is the extremely high interest rates and fees. If you decide to get this kind of no credit check credit card make sure you fully understand the agreement terms and don’t miss any payments. That’s when the interest goes sky high and your credit rating goes down. If you pay these kinds of no credit check credit cards completely off every month you can avoid the high interest rates. If you keep your balance below 20% of your available credit you will begin to establish a better credit rating. This means if you are allowed $2,000 credit you should never exceed $400 per month. After a year or two of maintaining good credit practices you might be able to get a credit card with a much more comfortable interest rate and lower fees etc. No credit check credit cards are basically something that don’t exist but there are close alternatives that can help you establish a better credit score so you can get better credit cards down the road. |
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