Low Interest Credit Cards
Low interest credit cards are difficult to find nowadays. Lenders use a consumer’s credit score to determine what interest rate they will offer a cardholder. Even so, rates will vary from lender to lender. The easiest place to start looking for a low interest credit cards is on the internet.
A quick search will reveal websites like bankrate.com and creditcardguide.com. These sites will compare the offers that credit card companies have available in your area. It is best to start searching for low interest rate credit cards through one of these sites because actually applying for credit cards just to see what they will offer will actually decrease a person’s credit score. It makes lenders think that the consumer is desperate for money and therefore a credit risk.
Another way to find a lower interest rate on a card that a consumer already has is to call the credit card company. Every six months most credit card companies will review their accounts and adjust credit rates accordingly. Yes they do actually reduce credit rates on their own, but sometimes calling and asking for a reduced rate will work too.
Low monthly payments are helpful for making the paycheck go farther. Keep in mind that only paying the minimum payment will make your purchases extremely expensive because you are still paying interest on the item until it is paid for. Adding just a few extra dollars to the minimum payment due will make a huge difference in the final cost of a purchase. The culprit is compound interest.
Low interest credit cards usually do not offer perks. Cash back programs, rebates and free travel all cost money and have to be paid for somehow. These enticements are often paid for with higher interest rates.
There are three basic ways to find low interest credit cards. Apply for the best offers that come in the mail. This is a bad idea. It can actually decrease your credit score. Research offers available in your area by using an online comparison website like bankrate.com or creditcardguide.com. This is good. It enables a shopper to compare interest rates and other features like low monthly payments without applying for any of the cards until the shopper is ready. Lastly, check with the credit card company that the cardholder already has an account with. This will not affect a credit score and if the company lowers the interest rate it will avoid the hassle of changing accounts.