Low interest rates are the most common selling point used by credit card companies to solicit new clients. Having a low interest rate is certainly appealing, and preferable to having a high one. However, it’s important to remember that credit card companies primarily generate their profits not only from interest, but also from fees. Thus, if the company is not making a lot of money in one way, they may be compensating with the other, by charging unfair fees. The following are a few  commonly overlooked disadvantages associated with low interest credit cards.

Reading the Fine Print

Checking the card’s terms and conditions is imperative when applying for a card that supposedly offers some of the lowest rates around, because in most cases these amazing rates won’t last forever. While

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The easy access to credit cards and bank overdrafts in recent years has made the UK public over-reliant on building up debt and not saving enough, an expert has claimed. People have also been using their credit cards to financially support themselves during emergencies and economic downturn, but this can mean unhealthy levels of debt.

Yvonne Goodwin, who is the managing director of professional advice firm Yvonne Goodwin Wealth Management Ltd, also argued that we could have been less inclined to save for future events because of the low interest rates on savings products in the last few months.

She found that people could change this in the coming weeks ahead by trying to improve the way they save. Read full article…

Paying only the minimum monthly repayment (MMR) on credit cards can prolong debt and increase interest charges significantly, warns price comparison website Moneysupermarket.
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Consumers could be increasing their debt by thousands if they pay only the typical MMR required by their provider,

According to the new research, if a customer pays only the minimum repayment every month, it can take up to three times longer to repay the debt in full.

Moneysupermarket advised credit card customers to be proactive and pay slightly more (they suggest five per cent) every month. Read full article…

Due to the staggering amount of credit card debt in the U.S., many people have been reluctant to apply for a new card, and parents in particular are warning their college-aged children about the possible woes of credit card misuse. This is not surprising considering the seemingly unfair terms that govern many college credit cards. Even so, there are some cards that may actually give the student some extra financial help in difficult times, without charging exorbitant rates or unexpected fees. The following information outlines some of the reasons to choose a college credit card.
Easy Approval

College credit cards usually have easy qualification standards in comparison to other cards, which is one reason experts recommend them to people who have not yet established a credit score.

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It’s hard to believe, but it’s been six months since BP’s devastating oil rig explosion and subsequent leak took place. Although the oil was contained some time ago, the incident is far from resolved.

According to USA Today, scientists and government officials are still tallying the number of injured and dead wildlife and documenting the damage to shorelines and marshes. They say the work to fully restore the area could take years.

Lingering problems such as the oil spill remind me of credit. It takes hard work and discipline to build and maintain a good credit rating. But what happens when we have an emergency or don’t quite understand how credit works, and we find ourselves with bad credit, debt collection notices or even bankruptcy?

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