The Top Three Ways to Keep your Low Interest Credit Card
If you are one of the lucky few to have a low interest credit card in your back pocket, then congratulations are in order! A low interest credit card means that you have worked hard to maintain an excellent credit score and a gleaming credit history.
Don’t assume, however, that once you earn your low interest credit card that it will be there forever. Instead, you must continue to prove that you are a good credit risk and that you deserve the perks that go along with a low interest credit card – especially given that many creditors are pulling low interest credit cards right out from under their cardholders the first time they make a mistake.
The following three tips will help you keep your low interest credit card:
- So, it’s a no-brainer that you must pay your low interest credit card bill on time each and every month to maintain your low interest rate. However, did you also know that your creditor could be watching your other debts, as well? It’s true! Many creditors are now frequently checking their cardholders credit reports and, if they see other delinquent bills, they may very well relinquish their customers’ low interest status.
- Keep your debt to a minimum. In order to qualify for the lowest interest credit card, you will need to keep your debt-to-income ratio in check. Always aim to stay well under 40 percent so that you will continue to show creditors that you are a safe credit risk.
- Consider utilizing an automatic bill payment service so that you don’t risk paying your credit card late. Most of us have, at one time or another, been in a position where we simply forget to pay a bill on time. Well, with low interest credit cards, you simply can’t afford to not pay your bill on time, as one misstep could result in a rise in your APR.
An easy solution to this are automatic bill payment systems which take care of business, regardless whether you remember your card’s due date or not. A one-time set-up, either through your creditor or your bank, is all you need to set up an automatic bill payment system.
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