Nov 2008
29
by savingtools
Posted In: credit cards
Any of the following happening soon ? If so, you may have an opportunity to save quite a bit of money on credit card interest rates.
- Are you applying for a new credit card ?
- Considering doing a balance transfer from one card to another?
- Received a notice from your bank that your credit card interest rate is increasing ?
- Trying to negotiate a lower rate with your credit card provider?
In any of those situations, it's important to know what the different rates mean. Even a relatively small difference in interest rates adds up to hundreds of dollars in interest per year. See the chart below for a rough estimate of what you'll pay in a year's period in interest, on a variety of balances ranging from $1,000 to $10,000:
| Balance | 18.9% | 11.9% | 5.9% |
|---|---|---|---|
| $1,000 | $189.00 | $119.00 | $59.00 |
| $2,000 | $378.00 | $238.00 | $118.00 |
| $3,000 | $567.00 | $357.00 | $177.00 |
| $4,000 | $756.00 | $476.00 | $236.00 |
| $5,000 | $945.00 | $595.00 | $295.00 |
| $6,000 | $1,134.00 | $714.00 | $354.00 |
| $7,000 | $1,323.00 | $833.00 | $413.00 |
| $8,000 | $1,512.00 | $952.00 | $472.00 |
| $9,000 | $1,701.00 | $1,071.00 | $531.00 |
| $10,000 | $1,890.00 | $1,190.00 | $590.00 |
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