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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
American Express Travel
October 24, 2008
American Express continues to please its loyal customers with exclusive card offers for frequent travel rewards. Its latest product, co-branded with Delta Airlines, comes with a catchy "Delta Reserve Credit Card" name and aims at wealthy and creditworthy customers looking for incomparable travel experience. It cannot be referred to as a cheapest deal among the rewards type, but the price for the outstanding benefits and additional programs is more than acceptable.
The $450 annual fee and a competitive APR on purchases and balance transfers are charged for the exclusive access to the 24-hour Concierge Service, SkyMiles account rewards program and extended credit line. If you think you can find something better online, take a minute to read further and ascertain that American Express has not been overtopped.
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Pre Approved Credit
October 07, 2008
If you hold a valid FICO score with at least one national credit reporting agency, you are very likely to receive a pre approved bank card offer in the mail. But among the 3% of recipients completing and returning the application, only some 1.5% if not less actually get approved. Why is that and what are you required of to qualify for that enticing card offer sent by a major bank?
Most people think if they've been pre approved, there will be no hassle going through the formality of the application process. Now they don't have to spend hours searching and comparing products online to find the only right variant. Hardly anyone knows how the bank chooses a potential customer and what eligibility requirements it will use to finally approve or reject your application.
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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.
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