10
Credit Card Surfing 101 and How It Can Affect Your Credit Score
by Admin ·
With the huge building competition, many credit card companies began to offer introductory 0% APR credit cards. Aiming to attract new credit card applicants, without interest is applied to balances during the period April to 0%.
This constitutes a gap that can be exploited by surfer’s credit card. Purchases are made with their 0% APR credit cards until the credit ceiling. Only the minimum required by the credit card company will be paid each month without incurring the cost of interest rates. Once the card is maxed out, surfer’s credit card will make a request to another 0% APR credit cards and repeat the same cycle.
Sounds like a great way to get free money, right? Well, when you may be able to browse through some cards, sooner or later you’re bound to reach a road block. With the massive debt piled with interest charges imposed after 0% introductory period the rate in April, surfers credit card will face snowballing debt, since interest charges come into the picture. The exception to this is when surfer’s credit card pay off all outstanding debts before that happens.
Otherwise, with multiple credit cards in their hands, each of which are charged to a maximum credit limit, any default or late payments will result in a bad credit score. Now what are the consequences of a bad credit score?
Well, now you’re labeled a high risk lender, you probably will not be entitled to more credit cards regularly. The ones you can purchase cards are high interest credit catered specifically for consumers with bad credit reports. That puts him at a disadvantage as it is now paying higher interest.
Besides that, getting your loan approved for a car or a house will also be a challenge. You’ll probably have to pay much more in the interests of others. In the end, it may be better that you do not purchase until your credit report is set straight. This will only happen if you pay your debt to credit card debt and maintain a good payment history for the next six months to a year. This is the hardest part because you need to work harder or take another job to get your debt cleared.
Related Posts:
Tags: APR credit cards, bad credit score, credit card, credit card companies, credit card debt, credit limit