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"Skip-Payment" Credit Card Offer, Do You Really Need It?
As we all know, the competition on credit card market is really high, there are millions of credit card offers on the market today! That's why credit card companies offer many new interesting services for their customers. Sometimes it is really tempting to use the new services, but it is always good to find out more about them!
One of these services is called "skip-payment", have you heard about it? Find out if it is wise to use "skip-payment". Learn all about advantages and disadvantages of this service.
Have you ever received "skip-payment" offers in mail? Or, have you ever received phone calls from MasterCard or Visa credit card company, wondering if you would like to skip your monthly payment?
One the one hand, you probably would love to have a break from your financial obligations. But on the other hand, this service is not as great as it sounds! Most of the time credit card companies are not willing to tell you the price of this service! So the next time you receive a phone call from your credit card company, make sure you ask exactly how much "skip-payment" will cost you.
This service gives you the opportunity to accrue more interest. If you decide to skip a payment, your following month balance will be higher, even if you didn't purchase anything that month.
You have to take into consideration that an average price of "skip-payment" service is about $30, which is about as much as a late payment fee!
Accrued interest will also be added to your balance. Even if you have low rate credit card, it will take you several months to pay off your balance to be increased.
Let's say that your credit card balance is about $5000 and your card's interest rate is 12%. You pay $100 to the account every month, so if you want to skip your $100 payment, get ready to spend $199! If your credit card company requires a fee to skip a payment, you would have to add this amount to the total sum!
Do you still want to skip your monthly payment?
The only time when it makes sense to use "skip- payment" offer is some emergency situation: you have lost your job or have some unexpected medical or auto expenses. If your minimum payment is higher than the price of this service, it may be a good idea to skip your payment.
This service will not damage your good credit and may really help you in solving your financial difficulties. If you decide to take advantage of "skip-payment" offer, you have to make sure that you make more than minimum payments afterwards in order to get caught back up and avoid paying fees!
If you think whether you would like to accept "skip-payment" offer from your credit card company, make sure that you really need it!
ARTICLES about Credit Cards | >> View all Articles
Credit Cards at College
September 26, 2008
Though a standard unsecured student credit card is available to high schoolers nowadays, it is at college that young people make their first financial decision independently from parents. The first responsibility comes with the need to choose the right plastic from a great spectrum of equally attractive offers.
Student offers are normally spiced with various bonuses, advantageous features and striking rewards which often drive the youngster into impulsive application decisions. The hassle or negative consequences of choosing a card would be avoided if a student knew the basic points to look at when doing a search.
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Top Credit Card Companies
September 12, 2008
Not as universally accepted as Visa and MasterCard, American Express was recognized the leader by the 2008 credit consumers' satisfaction study. The company tops the list of providers which services, fees and rewards are found especially attractive and so bring the greatest satisfaction to most cardholders.
American Express though has never offered cheap and easily affordable services. Traditionally, its major business and best products have been targeted at customers with firm financial standing, long and faultless payment history and high job income. In this way AmEx differs from the other companies involved in the study but its first place is still well-earned. Why? Because any person able to pay will fork out for the first-class services traded by the company.
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Online Credit Offers
August 29, 2008
It's a commonly used practice among US consumers to go online for making purchases. Credit card selling business has occupied a great part of cyberspace and reached the level of a whole industry. As it saves time and effort when shopping for a plastic online, every second American customer turns to a web site in search of an application.
But compared to the supermarket round the corner, where all the merchandise is laid out for you to see and compare, a website might present difficulties for buying decision making. One can especially feel it when it comes to evaluating the complex features of plastic cards online. Depending on how attractive or beneficial the features are, you choose a credit offer for the top of your wallet.
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