Introduction
Money transactions have become easier with technology advancement, and internet is the greatest source of online transactions in a few clicks. A money transaction through credit card is a thing; everybody talks about and knows well. It is quite easier way to get money from bank at any place at any time through credit card, then beholding chequebook and making frequent visits to the bank for taking cash, and wasting precious time. Any payment made from the credit card; money is withdrawn from the bank. Bank takes interest at any transaction made through credit card. Credit card holders have to pay a certain fixed amount, along with interest for getting payments from credit card. In turn, bank gains revenue in from of credit interest.
History
However, credit interest rate is different for different credit cards. There are numerous facts involved in determining interest rates .One of them is the resources at the disposal of bank, administration cost, history of transactions through credit card, and other factors. A person can find out credit interest rate from the monthly bills of credit card. Banks generally send these bills to their customers on regular basis to keep record. Bank has an institution with the name of customer service to clear any ambiguities, which arise in the mind of customers.
Features
Bank clients get one month or some days above to clear all the bills sent by the bank. Money transactions, made within time limit does not cost credit interest. When the time limit is over for paying bills, amount of credit interest will be multiplication value of your current balance. This interest rate will increase with every passing day in making post payment. If you make all the payments within time limit, you get low inertest rates, and get good credit in response. This would help you in future by lowering the amount of interest paid over your balance.
Tips and comments
You can make your annual credit interest rate over your annual balance by visiting customer service department of bank. If your credit history is good, you have a credit card with greater interest rate. You can convince the bank with making authentic arguments regarding your credit history. However, you can cancel your membership card, if bank is not agreed to give concession over interest rate. Credit cards offer negligible interest rate over a certain time, and then increase credit interest. This would help customer to save money from greater interest rates.
There are some other ways to shorten the amount of interest rate for your credit card payments. Make sure that you pay all the bills within time. Most people save money by making transactions in this way. Credit interest is the product of percentage interest and remaining balance. Interest rate increases directly with the amount of balance. Although using a credit card for money transactions has a few drawbacks also. Despite of this fact, it is more comfortable to have credit cards with all the payments made at the required time. You can develop a good credit history, and gain long-term benefits. Moreover, you can get a new credit card according to your requirement if you have a good credit payments history.
