Paying credit card interest? You are about to pay more

Paying credit card interest? You are about to pay more -

Updated July 20, 2016

If you carry a balance on your credit card, you may want to prepare to pay more interest, the Federal reserve recently announced that all interest rates will rise to 0.25% as of 17 December 2015 for the first time since 2006 the Fed has determined an increase in interest rates will help the economy return to normal after the recession of 2008, when rates fell significantly.

How does this impact me?

There are two ways that increase can affect you. If you have a savings account or looking to start one, you will be able to earn a little interest on your balance which will help you build a faster balance. On the other hand, if you have some kind of debt, as a balance on a credit card or other floating rate loan, or plan on applying for any type of loan in the near future, you can expect to pay more in interest.

What can I do if I pay credit card interest?

If you have a balance on your credit card and you want to avoid paying a higher interest rate, the best option for you is to transfer that balance to a balance transfer credit card . These cards offer a 0% Intro APR on the transferred balance for a long period of time - giving you enough time to repay the credit card balance while paying $ 0 in interest. While most of these cards require balance transfer fee, which is usually 3 or 5% or the total transferred, the price is less than the total interest you will pay in the long term. With so many balance transfer cards to choose from, we have a breakdown of the best transfer card balance available at the moment.

Chase Slate

If you are looking for a balance transfer card that is the best of the best, Chase Slate is one for you, because it is the only card that combines a long-term 0% APR intro with a $ 0 intro fee balance transfer. To start, you'll have 15 months 0% Intro APR on all balance transfers and purchases, which means you will have more than a year to pay off your debt. Then, if you complete a balance transfer within 60 days of opening the account, you pay $ 0 for balance transfer fees (after 60 days the fee is either $ 5 or 5% of the amount of each transfer) . While the card you win awards, it has no annual fee. Another strong aspect of this card is that you only need a credit rating of "good", unlike most other cards on this list that require an "excellent".

Citi Diamond Preferred Card

The Diamond Preferred Card Citi is the best option for someone looking to transfer a hefty balance, because the card offers 21 month 0% Intro APR on balance transfers and purchases. Yes, you read that right - 21 months interest free! While this card has a balance transfer fee of $ 5 or 3% of the amount of each transfer (whichever is greater), it has no annual fee and allows you to choose the day of your payment, something most cards do not offer.

Discover it - New! Double Cash Back your first year

With a balance transfer APR and long cash bonuses, you can not go wrong with the Discover it - New! Double Cash Back your first year card. For starters, the Discover card, it offers 16 months 0% Intro APR on balance transfers, which gives you plenty of time to repay the credit card balance you carry. There are transfer fee of 3% of each transfer balance, but it may be worth paying more your increased interest rates. In addition to the benefits of balance transfer, Discover it also earns you 5% cash back on up to $ 1,500 in purchases in certain categories that rotate quarterly and unlimited 1% cash back on all other purchases. As if that were not enough, Discover will double the rewards you earn in the first year -. Means that if you earn $ 100 in rewards during the first year, it will be doubled to $ 200

BankAmericard

If you are looking for a transfer card simple balance with a generous term intro APR BankAmericard is the option for you. With 0% Intro APR for 18 billing cycles on balance transfers made within the first 60 days - meaning the transfer must be completed within 60 days of opening the account, it is a great option for anyone hoping to get rid of a balance on their current card. Although you have to pay balance transfer fee of 3% of the amount transferred or $ 10 (whichever is greater), the long-term April coupled with no annual fee makes the BankAmericard an option above to help you pay your balance .

I do not know if a balance transfer is the best option for you? Use our free balance transfer calculator to get an exact amount of how much you can save by transferring your balance to one of these cards.

What can I do if I have an adjustable rate mortgage or hybrid?

If you currently have a variable rate mortgage or hybrid, you may not need to worry about for now, because it does not know how the Fed decision will have an impact on mortgage rates. That said, for those who fear that they will have to pay more interest on their mortgage, it may be wise to refinance. While you are likely reluctant to commit to another mortgage, especially with the uncertainty surrounding the rate, refinancing may be your best bet because the balance of your loan is lower, which means that you will pay less, even if you have the same interest rate for the loan amount is smaller. Visit our refinancing page to learn more about your refinancing options.

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Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.