Question:
with 23.19% interest rate. If the card was maxed how much would the payment run?? Any help would be greatly appreciated I don't want to get in over my head. Thanks in advance.
Answers:
Usually those cards are Premiere, Ochard, Tribute one of the high interest rate cards.
The payments are usually 20.00 no more than 25.00 a month. These cards are given to those with bad credit. Horrible rates. But it is a way to re-establish your credit. They charge usually a monthly maintence fee of 6.00 - 7.50 and an annual fee of 79.95 to 89.95. They also charge to do a payment by phone or over the internet of 6-11.00
So if your payment is 20.00
6.00 of that goes to the maint. fee
7.00 (approx) goes to phone or internet fee
2-3 goes to interest
so what is being paid to princiapal is: 5.00
Always pay more than the minimum, try and always to mail your payment on these type of cards to maximize where your money goes.
If you can try to pay the balance off eary. Make payments of 50.00 or so... There for you are only charge 6.00 every month and you can pay that off every month. After at least 6 months of on time payments, you can negotiate a lower interest rate.
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If you pay it off at the end of every month there won't be any interest. If your not going to pay it off don't use it.
I had a card like that after my bankruptcy.
The trick is to use it for everyday things like gas and food and never exceed 30% ($100.00) in your case of your credit limit in any given month and pay it off in full before the due date.
This will do a couple of things, because of the lag between the billing date and the due date there will always be a very small balance for the credit card to report, but you will not pay interest on it since you paid the full amount shown on your statement. This will slowly show a payment history (35% of your credit score).
Do this for 10-12 months and you should be able to get a better card. Do the same thing with the new one and after another 10-12 months you will have re-established your credit score.
i had two of them i use them to help boost my credit after bk
then i closed them when better offers came.
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23% is very close to 24% which means 2% charge each month.
so, whatever your balance is, you will be charged almost 2% of that as finance charge
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