You know that it's desirable to have a high credit score in order to get a low credit card interest rate, but do you know why your credit score is important — or how the interest on balances is calculated?
Tiffany Aliche, Financial Educator and Author also known as "The Budgetnista", explains the thinking of credit card issuers: "If you have a higher credit score, that means you are more likely to pay back. And if you are more likely to pay back, they are more likely to lower your interest rate...if you are not likely to pay back, people want their money upfront." If you're not sure what your credit score is, you can check it and read your credit report for free within minutes using Credit Manager by MoneyTips.
When a credit card company considers ...
from MoneyTips https://www.moneytips.com/credit-card-interest-101
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