How to analyze the cost of credit card?
Have you ever thought how much a credit card costs to you? You
can say 'Yes'. Also you can say that you are aware of all the
hidden costs and charges. In fact there are many hidden fees and
charges that often go unnoticed by the credit card user.
If you are not serious about these hidden costs then at the end
of the year you could end up paying thousands of dollars without
even realizing it. Ultimately you can easily found out that your
yearly budget is destroyed by this hidden cost.
Here are some of the descriptions of the hidden costs which you
can avoid:
The very first factor is the Grace period. It is the extra time
provided by the credit card companies in which you can pay your
bill past the due date without accruing additional interest of
fees. Most of the credit card companies have reduced this grace
period these days and they are having the planning of making it
very much difficult for the user to pay their bill within this
grace period. Some of the credit card companies have eliminated
this concept of grace period. So if you anything today it will
start accruing interest immediately. Now it is you who can
decide to choose another credit card company which is providing
more grace period than your current one.
The other factor which is generally ignored by general user is
the Late Fee. This is the main area of income for some of the
credit card companies. You should know what the late fees are
for your credit card and under what circumstances you can be
charged, otherwise you can found yourself in a big trap of fine.
Try to pay your bills as soon as you receive the statement,
otherwise the late fee will be implemented on you. If you are
submitting the late fees then it can also diminish your credit
report. Even the credit card company can increase the interest
rates if you miss the payment of the bills by the date.
So overall you are the sole person responsible for the hidden
cost on your credit card. If you are paying the bills on the due
date then you need not to worry at all. By making your payments
on time, you will save hundreds or thousands more dollars each
year in interest and other fees. Have a happy credit life!!!