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[L653]Low Interest Rates Credit Cards

by Tiderc Sreffo, Tid

The differences in what credit card companies are charging for interest rates are alarming. Low interest credit cards are generally considered to be fewer than 10% interest rate. High interest credit cards can soar to over 30% in some cases. You need to be well informed of just how many credit card opportunities are available to you before making a selection.

Keeping the low interest rate over the lifetime of your account is easy if you play by the credit card company's rules. All payments must be paid on time. No late payments will be tolerated by the credit card company. They will take away that low interest credit card and turn it into a default rate interest. This is usually the highest possible interest rate that they can charge you by law, around 30%. Yes that's right 30% is the average default rate. Credit card companies can do this even if the payment that you make late isn't made to them. It can be any other bill that you have paid late on. If it is reported to the credit bureaus, chances are, your credit card company will find out about it and send you a notice of change in terms or something similar.

Finding a low interest credit card that you qualify for will benefit you in many ways. Most credit cards come with a very low to 0% introductory rate for balance transfers. This can potentially save you thousands of dollars over the life of your introductory period. If you transfer a balance from a credit card that has a high interest rate, the amount you pay will come directly off of the balance and no additional interest will be charged during the introductory period. You may even be able to pay off your debt completely with a low interest credit card that has a 0% introductory period. Divide the amount that you transferred by the number of months they allow for the introductory period . This will be the dollar amount it will take for each monthly payment to have it completely paid in full when your introductory period is over.

If you need a low interest credit card because you are thinking of making a big purchase that you want to pay off over a period of time, consider finding a card with an introductory rate on purchases made within a certain timeframe. You might even get lucky and find a 0% on purchases. This lets you buy the item now and pay for it with no interest at all. They allow you to borrow money for free under certain conditions.

To compare credit cards and their interest rates side by side visit creditcards8.com. You will be able to view introductory rates and more. They even have a search feature for bad credit credit cards.

Once you have started to build up a credit history, you really need to look at what you are getting from your current cards. If the rates are high it's time to reassess what you are getting.

The simplest way to get a low rate on your credit card may well be to call and ask for one. If you're getting credit card offers in the mail already, use them for comparison of what you could be getting. And if the first person you talk to says they can't lower your rate, ask for a supervisor. Persistence can pay off big time.

But sometimes you want a new card for one reason or another. Maybe the current credit card issuer you are with is not pleasing you. You need to know which card you are most likely to be approved for at a low rate.

Start out by getting your credit report. You can do this free once every year from each of the big three credit bureaus. Look it over for any problems. Clear them up before applying for anything - this will improve your odds of being accepted with a low APR.

Choose the card you want to apply for carefully. Some low rate credit cards will specify that they are for people with good credit only. If you have problems with your credit report these will probably only cause you to be declined. Being declined for credit is not the healthiest thing for your credit score.

Similarly, you should apply only for one credit card at a time. Odds are you do not need more than one new credit card anyhow. Once again, a lot of inquiries into your account can look bad.

Not all low rate credit cards will demand near-perfect credit. If you have problems with your credit, take a look at the cards for people who have credit problems and see who will still offer a decent rate. But remember that unless your credit is really bad you can probably get a card fairly easily, even without focusing on your problems.

Much as you may feel the need to have a credit card, it is not something you should rush into too quickly. The smarter you can be with your credit the easier it will be to have good credit.

Article Source : Interest Free Credit Cards

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Both Tiderc Sreffo & Stephanie Foster 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.

Tiderc Sreffo has sinced written about articles on various topics from Credit Cards. . Tiderc Sreffo's top article generates over 4400 views. to your Favourites.

Stephanie Foster has sinced written about articles on various topics from Credit Cards, Shopping and Pets. Stephanie Foster blogs at on credit and other money. Stephanie Foster's top article generates over 823000 views. to your Favourites.