The CREDIT card can provide instant money for purchases, but paying for it can be anything but instant.
Any balance above one credit will often cost you more than you originally paid for due to interest.
The TikTok influencer explained the three types of payments you can make:
- Minimum payment: Paying only what is required will avoid default
- Specific amount: This is when you can pay any amount as long as you pay more than the minimum amount
- Full statement balance: This is when you pay off everything you spent in that period
If you have multiple credit cards, The Money Movement says pay off the credit card with the highest interest rate first, not the card with the highest balance.
The interest rate is also known as the annual percentage rate or APR.
This is the price you pay when you borrow money.
What is a good APR?
Good APR for a credit below one of the current average interest rates.
US average interest rate credit is 15.91% in 2021, according to the Federal Reserve.
Remember that the lowest interest rates are usually only available to applicants with excellent credit.
Your card type and credit score will affect the interest you’ll pay on the balance.
A higher credit score brings a lower interest rate.
Reward card has the highest interest rate, but you can avoid it by paying off the balance each month.
Bankrate.com offers a credit card calculator to find out how long it takes to pay off your credit card.
What is a good credit score?
Credit scores range from 300 to 850.
A higher credit score signals to lenders that you are low risk and more likely to pay on time.
A credit score of 700 or higher is generally considered good.
A score of 800 or higher is considered excellent.
Most consumers have credit scores between 600 and 750.
More, met a woman whose credit was denied, so she launched a card to help raise the women’s score.
https://www.the-sun.com/money/4497316/ways-to-pay-off-maxed-out-credit-card/ Money expert reveals three ways to pay off your max used credit card