Low Rate Credit Card
Shopping around for a low rate credit card is an important step one should take
when holding on to any type of significant credit card debt. Usually the people
who qualify have a good credit history report and being accepted for a low rate
credit card is a reward for having such good standings. Although, as long as
you are in the market for a new card for whatever reason, you should at least
consider these cards compared to others. While some cards flash incentives
toward air miles or money toward a new car, a low interest card can save you
more money over a course of a year then the incentive cards can, just because
you are not paying a high APR (annual percentage rate). Then you can take the
money you would have spent on a higher interest rate card and save it or spend
it on a fun goal you have for your life.
Intro Rates Are Important
You first want to see what the credit card company will give you upfront. Most
have great deals on balance transfers for a fixed amount of time. Just make
sure you can pay that balance off in the set amount of time and if you can’t,
that the rate doesn’t jump up significantly after the intro rate is over. Most
transfers have a 0% balance transfer for between 6 to 12 months. Other cards
have an introductory rate of 0% for any new items purchased for 6 to 12 months
and then they also have a low interest rate on a balance transfer for the life
of the transfer. Make sure after the introductory rate for a balance transfer
or for new item purchases stays relatively low after the intro rate time has
elapsed.
Low Interest Rates
There are two types of interest rates you want to look for. The first is a
fixed interest rate, which is an interest rate that is the same throughout the
life of the loan. The next one is a variable interest rate, which is an
interest rate that changes during the life of the loan. If you go with a
variable interest rate, make sure that the rate does not exceed a certain
percentage rate. For example Discover Platinum has a variable rate as low as
8.99% if you qualify. But since it is variable it could adjust during the time
of your loan to 10.99%. As long as you are aware of this and still find it to
be a good deal, this would be a possible choice. Also, you need to make sure
you keep up on the payments in order to keep a low rate card. If you miss one
or more payments that 8.99% could turn into a 21.99% rate, which defeats the
advantage of having a low rate card. Doing the research is half the battle, but
if you can pay your minimum balance off every month on time and maybe pay more
then your minimum balance, you can benefit greatly from a low interest rate
card.