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Best To Steer Clear Of Slate Credit Card

Slate from Chase can make it confusing to keep track of your finances.The new credit card from Chase, Slate with Blueprint, says it lets you pay your recurring monthly charges and avoid paying interest, while creating a payment plan to pay off your larger purchases.

But will that necessarily help you save money?

The negative aspects of this card make it difficult to imagine.

Your monthly statement will separate your “full pay” purchases — everyday purchases like gas and groceries you elect to pay off in full without incurring interest — and “split” purchases, the larger purchases you choose to pay off over time, which do incur finance charges.

For bigger purchases, you can choose a monthly payment or a “goal date” when you want to have the balance paid off. Chase “does the math” and sets up a payment plan — its “Blueprint” — for you.

In theory, the payment plan is a good idea, and very few credit cards have such a plan. Many consumers probably would like a set program to pay off their balance in a certain period of time.

I’m just not sure how helpful this card really is.

The program is complicated and might confuse some people. That could eventually lead to higher balances, higher finance charges, and late fees.

As more purchases are added to your balance each month, your billing statement will likely get more confusing and you won’t be sure how much you need to pay each month to avoid paying interest on your “full pay” purchases while keeping current on your “split” purchases.

Usually, the more complicated the card, the better it is for the bank and the worse it is for you. If you don’t understand something, you should avoid it.

You’re also putting a lot of faith in Chase to set up a payment plan that works to your advantage and not the bank’s.

Is that realistic?

The interest rates on this card are also can be rather steep.

If you have excellent or good credit, you get a long 0% interest period of 15 months on both purchases and balance transfers, but after that your rate jumps to a variable APR of 11.99% or 16.99% (that’s the prime rate of 3.25% plus 8.74% to 13.74%).

If you have average credit, you get 0% on balance transfers only for just six months. Meanwhile, your interest rate on purchases is a sky-high 21.99% APR.

If you must carry a balance on your larger purchases, it makes more sense to get the lowest rate card you can find and carry the balance on that and pay it off as quickly as you can.

For your everyday purchases that you’re sure you can pay off every month, get a rewards credit card.

You can find the right card for among the credit card offers in our extensive database.

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