How to save money in Spain

Anyone who is not certain they will be able to clear their monthly credit card balance in full needs to pay great attention to the interest rate a card carries before signing on the dotted line. Those with an excellent credit history will be in a position to apply for the best deals as a good credit score indicates a good financial reputation. However, those with a less than perfect score are less likely to be able to take advantage of the most preferential rates.

Ironically paying your balance off in full each month is one factor which is likely to result in your obtaining the lowest rates, which makes sense as if you clear the balance in full each month then the interest rate is completely immaterial. If you are more known for carrying balances then the lender will look for an opportunity to draw interest charges from you.

Low introductory interest rates are usually offered with balance transfer cards, but there is inevitably a balance transfer fee to pay for the privilege. It is important to determine what the interest rate will be at the end of the introductory offer in advance, as it could be high.

The way you handle your credit card payments will also influence the interest rate. If two consecutive payments are missed on your card then a penalty interest rate will be imposed which will be a costly one, and this will apply for a set period of time. Lenders keep the penalty APR in place until six consecutive payments have been made in a timely fashion.

It is worth paying attention to this clause in the terms and conditions you sign as many have no idea that this will happen as a result of missed payments, simply assuming that the late payments will carry a late payment charge but unaware of the increase in interest charged.

Banks are no longer allowed to arbitrarily increase the interest rate you pay as they so famously did in the last few years. However they do have the right to raise the rate by informing you in writing that they intend to raise the rate in forty five days. Of course if you are carrying a balance you cannot afford to clear you will end up paying the higher rate, but that may be a good time to shop around and look for a new card provider and decide to stop carrying balances.

Those with poor credit scores will be most likely be the ones who resort to obtaining credit from sub prime lenders where the interest rates and fees will be much higher. It is preferable to try and obtain a secured credit card from a reputable lender as a means of re establishing your credit in such circumstances than fall into dealing with a sub prime lender.

Your income, gender and race play no part in influencing the interest rate on the credit cards; it is primarily down to yourself and the way you manage your finances. By establishing and maintaining an excellent credit score you will be able to obtain the most preferential interest rates on the market.