Print Article for : Low Rate Credit Cards

Your Online Guide » Credit Cards » Types of Credit Cards

[L659]Low Rate Credit Cards

by Robert Alan, Rob

Low rate credit cards or as some know them as low APR credit cards can be very great for those individuals that carry a balance forward every month. The problem is that most people that really need or want low rate credit cards are unable to receive one because most credit card companies will only offer low rate credit cards to people with above average or excellent credit. This puts the majority of the population out of the market for low rate credit cards.

These low rate credit cards are out there, you can see them advertised on the television, on the internet and even in your email, but unfortunately, you may not qualify. The average rate for low rate credit cards is around 9 percent and some even go as low as 3.99 percent for certain individuals with an excellent credit rating. If you have credit that is less than appealing, you can always negotiate and possibly receive low rate credit cards if you have been employed with the same company for a certain amount of time, and the credit card company believes your income will stay steady.

However, many companies that offer low rate credit cards also have a pretty hefty annual fee or membership fee, which can be as high as $100. This can cost you more in the long run that owning a credit card with a higher APR from the start. Watch out for those introductory specials as well, just because the low rate looks wonderful, it may only be for 3 months and then the rate can go up drastically to up to 17%. You can always discuss these fees with the credit card company to see if they may waive this fee.

low rate credit cards may only be for an introductory period. You can even find a few with a 0% APR, the problem is once again that after the special there will be an increase. Some introductory specials for low rate credit cards are for 3 months, 6 months, 9 months, 12 months, and in some rare cases 15 months. If you are sure you will be able to pay off your balance before this period is over then it would be a great deal, however, if you will have it paid off you may notice that you will be paying 17% APR on your balance.

Just because, there are low rate credit cards out there does not mean that everything will be cheaper, the balance transfers can be expensive as well at around 3%. So, be sure that you read all the terms and conditions carefully before you even apply for low rate credit cards, or choose your Low APR Credit Card.

Many low rate credit cards offer a variable or a fixed rate of interest. If you choose a fixed rate of credit, this means that the rate will stay the same, however, with a variable interest the rate can fluctuate.

When you think of a credit card, you may think good things or bad things. It all depends on how you use it. For example, I tend to think I'm pretty good with my cards. I use them responsibly; I pay my bill off in full and pay it off on time. Maybe you're this way? Maybe you're not? The reason I'm telling you how I use my card is because I get sick of people out there telling me that credit cards are bad. Why are they bad? I never get charged interest. I gain rewards for my responsible spending. I just don't get why they say they are bad?

Well over the years, I finally got it. Those that can't control their spending think everyone else on this planet is the same way. The same goes with any other scenario. Let's say you got bit by a cat. You're probably going to think cats are the root of all evil and you're going to tell the world. You know what? That's okay with me because we are all entitled to our own opinion.

Now, you're probably wondering what the heck this does with low rate credit cards. I just want to point out that if you're good with your credit and you pay off in full, you shouldn't have to worry about the rate. Let's say there's a make believe card out there that gives you $100 every time you spend $500 and the interest rate is 400%. Is that going to scare most away? Sure it is but guess what? I love it because look at the rewards! While you'll never find a card like that, I just wanted to show you why the interest rate shouldn't matter.

In the end, I recommend that people look into cards that they truly can take advantage of. There is nothing wrong with a low rate based card because there are some that offer 0% for life, 12 months or whatever it may be. You just have to look out for the 0% for life because there are certain restrictions when you use it. I applied for one a long time ago and I have to make at least 2 purchases to keep the 0% alive. If I miss out on one payment, I'm screwed because the rate will jack back up to around ten percent or so. So what happens if I put $50,000 worth of loans on a 0% card and I'm stupid and I don't make 2 purchases? Well, you guess it, I'm going to be in trouble.

Credit cards take discipline and they want your money in the long run but as long as you play their game right, you can take advantage of all the rewards whether it's 0% offers, cash back offers and more. Look for a great card that works for you and start using it today to your advantage. You'll be amazed at how much you can save if you play the game the right way.

Article Source : Does Applying For Credit Cards Hurt Your Credit

About Author

Both Robert Alan & Tom Tessin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Robert Alan has sinced written about articles on various topics from Credit Cards, Business Credit Cards and Credit Cards. For more on , Robert Alan recommends that you visit CreditCardAssist.com.. Robert Alan's top article generates over 110000 views. to your Favourites.

Tom Tessin has sinced written about articles on various topics from Mileage and Fuel, Education and Finances. Find that can help you save money on interest and more of my work all at FINDlowcards.. Tom Tessin's top article generates over 673000 views. to your Favourites.