2021 Earned Income Tax Credit

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2021 Earned Income Tax Credit
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AVERAGE CREDIT CARD INTEREST RATE

The average credit card interest rate skyrocketed
to 20.50 percent. The credit card interest rate
is heading in a complete trajectory than the
other financial products. According to
Bankrates latest survey, the benchmark 30-year
fixed mortgage rate is 3.060. Super prime
customers can access rates below 3 The Federal
Reserve cut its benchmark rate to zero back in
March to facilitate cheap borrowing, but credit
card borrowers do not benefit from historic
low-interest rates.
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Why Are Credit Card Debts So Expensive?
Credit card annual percentage rate (APR)
continues to surge while other debts are getting
cheaper because of risk, COVID-19, and the global
economy. The global pandemic severely impacted
big credit card issuers. They are facing colossal
credit losses. Millions of their customers lost
jobs and had to request forbearances on credit
card payments. Macroeconomic data indicate that
the global economy is in a recession. The
International Monetary Fund (IMF) said that a
recovery might not start until 2022 or early
2023.
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Alternatives to Expensive Credit Cards
Would-be credit card borrowers need to dig into
their emergency Funds first. Banks are paying
close to 0 interest on savings accounts. Savers
love the peace of mind that comes with having a
few thousand dollars in the bank, but borrowing
on credit cards is a high price to pay for that
peace of mind. Personal loans are another
alternative to expensive credit card debts.
Aggregated sites such as LendingTree and Sofi let
customers shop for personal loans online. Its an
installment loan, and the APR can be as low as 5
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How to Use Credit Cards Wisely
Lenders want you to be creditworthy before they
can finance that house, car, or new business, and
the FICO credit score is how 90 of them
determine that creditworthiness. Credit cards,
secured or unsecured, are among the best ways to
build a good credit score. FICO credit score is
a three-digit number based on information in your
credit reports. Your mortgage, credit card, and
auto loan payments, and other lending products
tradelines in your credit reports.
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