May
16Low Interest Credit Cards
Tagged Under : Credit, Credit Cards
The introduction of the CARD Act in 2009 put restrictions on what a card issuer must do in order to raise the interest rate on a credit card. These added restrictions have caused many card issuers to refrain from offering low interest credit cards or credit cards with low introductory interest rates. Now the lower interest rates and special promotional rates are more likely to be reserved for cardholders who meet the following guidelines:
- Have very good or excellent credit histories
- Have very high credit scores
- Use their credit cards frequently for purchases and balance transfers
- Tend to carry high balances on their credit cards
Finding the Best Deal
Finding a credit card with a low interest rate requires research. It is important to review the terms and conditions of the card so that you understand when the interest rate might change, how much of a rate change to expect as well as what additional fees may be charged on the card. A credit card with a low interest rate may not be such a good deal in the long run if the card’s interest rate is due to increase significantly in three to six months or if the card issuer charges a large annual fee.
Generally, a credit card that offers rewards or cash back will have a higher interest rate than a card that does not have these features. The card issuer may, however, offer a special introductory interest rate on these cards to cardholders. Frequently, the special introductory rate is also extended to balances which are transferred onto the card from other credit cards.
Be sure to analyze all the rates, fees and restrictions on a card to make sure it is the best card for you. For example, if you have a balance on a high rate credit card that you want to pay off over the next year, you may still be saving money on a new credit card with an annual fee that offers a very low promotional interest rate on balance transfers for twelve months.If you plan to pay off the balance in the next year, you can be less concerned about the higher, post-promotional interest rate.
Types of Low Interest Credit Cards
Several of the major card issuers offer special promotional rates for their credit cards (rates shown were current as of Spring 2010). Offers may be changed and rates may change, so be sure to check online for the most recent rate information. You can either check the website of each credit card issuer or you can search for information on each card through a website that has a summary of all cards such as the credit card finder at creditcards.com.
You don’t have to apply for a new credit card to have a have a credit card with a low interest rate. You may be able to negotiate a lower rate on your current credit card. If you want to transfer balances onto a low interest rate credit card you can also request a higher credit line on your card. In either case your credit card issuer will check your current credit history before granting your request. Whether you are applying for a new card or negotiating a lower interest rate on your current credit card, you want to make sure that your credit history is accurate. Be sure to check your credit report and correct any errors before you apply for a new credit card. Similar Posts:
