One of the main aspects that concern users when they have a credit card has to do with the interest rate.
Many believe that interests ‘eat them alive’ and that is why they prefer not to have any plastic
The truth is that there are different options in the market and each one has a particular rate that depends on the user’s profile; Even so, there are cases in which the interest rate changes and they end up charging another.
Why does the interest rate change?
First of all, the change is not without any reason, that is, there is a receipt and it has to do with what you do with the card . Many people are unaware that the interest rate on their card as “standard” applies to purchases, but this changes if they do otherwise. And, if you have cash from your plastic, the rate will be different and higher. That is why it is not recommended to use the card for this purpose.
What other time does it change?
The interest rate can also be modified when the bank makes certain adjustments, depending on market conditions. By law, this modification must be communicated and usually done through an email, notifying you that, for that new period, your rate goes from being “X” to being “Y”. So, if you are one of those who ignores the bank’s communications, you should start to stop doing so and pay attention to them.
Finally, if you are one of those who live to the limit and from time to time it is passed on the dates of the payments, you should know that once you fall into default, it is normal for another type of interest rate to apply. This rate is applied to the days of default or delay, and is different from the one you have for your purchases.
Those are three reasons why your rate may change and that you should know to give it a good handle. Also, do not forget that the market is constantly launching new options for users, so it is good to review the alternatives and check if there is a card with better conditions waiting for you.