Why is my credit card interest so low?

Question

I've had only one credit card since I was 18 (so for 10 years) and the interest on it is only 1.313%!

Obviously I'm not complaining but sometimes I worry that this is an unnoticed mistake on the bank's part and they're suddenly going to notice and demand years of payment of unpaid interest........

My credit limit was £500 10 years ago and has gone up to £3000 as I've approached the limit a few times. My balance is currently eeking up and up to nearly £1000 now. Obviously the low interest is fabulous but should I be worried??

Chalice

? · Accepted Answer

That's likely the monthly rate - and your annual rate is 15.75%. If that's the number they're using on your statement to calculate the interest yes absolutely it's just the monthly rate (1/12th of your yearly rate)

BungalowMo · Answer

You have been a great customer and they have chosen not to raise your rate.  

I wouldn't call other companies, as then they will want to offer you their card (which includes a hard inquiry on your reports).  They cannot tell you what their interest rate would be without doing so, either.

App for another card when you are ready, not to just *see* what rates others would offer.  Just not sound advice.

? · Answer

That sounds great!

I don't think that a bank can legally demand payment on years of missed interest, at least I would hope so.
Try contacting a different credit card company from the one you use and ask them what you should do.
Also ask around to your friends and see if anyone else has such unusually low interest.

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Why is my credit card interest so low?

3 Answers