![]() ![]() If you have the type of self-discipline when it comes to your finances to ensure you don’t carry a balance on your credit card, then you could likely apply that same rigorous approach to maximize the rewards potential on the Chase Freedom® Flex credit card. This interest rate far outweighs the value of any rewards and can easily be bested by a card like the Upgrade card. This is not a card to own if you typically carry a balance as it comes with a higher than average APR of 26.99% (Variable). If you spend at least $2,600 per year on the card, you’ll break even with the cost of the annual fee. Although it carries a $39 annual fee, it also earns an unlimited 1.5% cash back on all purchases. The Capital One QuicksilverOne Cash Rewards Credit Card is an exception. If your credit is fair, you typically aren’t eligible for cards with both good terms and rewards. Capital One QuicksilverOne Cash Rewards Credit Card There is a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater. Balance transfers must be completed within 4 months of account opening. After that the variable APR will be 14.74% - 24.74%, based on your creditworthiness. The Citi Simplicity has an annual fee of $0 and comes with the following promotional offer: 0% intro APR for 21 months on balance transfers from date of first transfer and 0% intro APR for 12 months on purchases from date of account opening. If you’re confident you have the self-discipline to pay off an existing balance or a big buy within a year and a half or less, the Citi Simplicity® Card will charge less interest than the Upgrade card. The Upgrade card will hold you to paying a higher monthly payment each month so your interest charges over time won’t run rampant, however it doesn’t offer the flexibility to pay a lower amount in a cash-strapped month like a traditional credit card does. But sometimes that’s not possible, and that’s where having a credit card can be beneficial. When spending on a credit card, it’s always best to plan to pay off the balance in full due to high interest rates. That’s the same amount as the Upgrade card, and if you need to pay less one month, you can just make the minimum payment without penalty. On that same traditional credit card with a $10,000 balance at an 18% APR, it will take 25 months to pay off the balance with a total amount of $1,958.79 in interest over the life of the loan. Now, consider someone who can pay $499.24 per month, every month. They’ll have accrued $14,423.16 in interest over that time. If that same person has a traditional credit card with the same balance and interest rate, but pays only $250 every month, it will take 28 and a half years to pay off the card’s balance. This person would pay a total of $1,981.78 in interest over the life of the loan. Someone with a balance of $10,000 who owns the Upgrade card and qualifies for an 18% APR will pay off the card’s balance in 24 months by making payments of $499.24. To understand the difference between the Upgrade card and a credit card with a revolving balance, it’s helpful to see how the payments could differ from a credit card with a revolving balance. The Upgrade Visa Card does not function the same way a traditional credit card does. Before signing up for this, or any other card, be sure you’re clear on your goals and what you can realistically afford. This is true whether you have a traditional credit card with a monthly minimum payment or the Upgrade card with an installment plan. The Upgrade card will also reward you for your payments with earnings of 1.5% cash back when you pay your bill.īut, here’s that Catch-22 again: If you’re not able to pay your credit card off in full each month, the interest charges you are paying will add up. Paying back your debt this way can be both less expensive long-term and faster since the terms facilitate you to make meaningful strides towards repaying the principal. Upgrade offers you a choice of a 24-, 36- or 60-month installment plan so you pay the same fixed amount every month until the balance is paid off. At the end of each billing cycle, the total of your transactions is added together and treated by Upgrade as an installment loan. You can use the card to make a purchase or transfer money into your linked bank account. Traditional credit cards charge interest for every day you carry a balance, but the Upgrade card functions like a line of personal credit. For the right person, the Upgrade card can elevate your bill-paying lethargy to something more robust. ![]()
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