I need help. ASAP ? Credit card issue?

Question

i was thinking of getting a credit card from my bank. the amount is $500 and the interest rate is 19.5. I was wondering like how much is that.?

Answer 1

You are only charged interest for what you actually charge on the card.  For most cards, you don't pay interest if you pay it off when you get the bill.  If you don't pay the full balance, then you pay interest.  

If you charge the whole $500, and carry that much of a balance every month, 19.5 pct interest is $97.50 a year.

Answer 2

That is a really high interest rate. See if you can negotiate a lower rate.

Check out this site to see maybe if you can get a better rate. www.credit-cards-comparisons. com. (no it is not my site). The low limit and high interest suggests you are new to credit. See if you can get a lower interest and then pay faithfully, preferably the entire balance each month. Plus, and this is really important. Do not charge more than 200 of a 500 available credit line. Less if possible. Then pay if off in full each month. If you cannot afford to pay of the balance each month, you cannot afford to charge it.

In just a short time, you will start to get offers for lower interest cards and an increase in limit in the card you have. But as you will see if you check out that site I recommended, keeping your debt ratio as compared to your available balance is important to keeping your credit score healthy. With patience and self-control, you will soon build some solid credit. It is a very valuable asset.

Good luck!

Answer 3

That's a horrendously high interest rate. You should be able to do much better, unless you have a pretty bad credit score.

Answer 4

It is nothing if you don't charge anything on it or always pay right away.  

Answer 5

The interest rate is high, the credit limit is low.

My guess you have no credit cards right now and this would be the first.

Go ahead and get it, but pay off the balance every month to establish more credit. Eventually you'll be able to get a better card and cancel this one.

My daughter started with a $300 limit, she just got a $2000 AMEX and she is still 18.

Answer 6

Forget that credit card the interest is out rageous