How to Qualify for Credit Cards with Low Interest Rates
Perhaps you want to get credit cards with low interest rates but it’s an option that isn’t available for you. Especially it’s true if you have no credit history or if your credit is doubtful. Then again, if your credit rating is excellent, it is easier for you to find a credit card with low interest rate. First of all you have to read the terms and conditions on credit card applications, in particular for credit cards that come with low interest rates.
You might find out that the card you are going for does not have a really low interest rate after all. This is usually the case with introductory offers where the interest rate is low for a short time period before it rises to 15% or 19%, independently if you have been paying on time or not. Besides, the supposed low interest may be applicable only to a transferred balance and not to your purchases Moreover, the interest rates of dedicated credit cards are determined according to the prime rate, thus leaving you with an interest rate that isn’t fixed. What does this mean for you? Every time the prime rate comes up so does the rate of interest, so that you have to repay a higher amount at the end of each month. This doesn’t seem you’ll make a great deal.
Now there is the question how great are these low interest credit cards? They are great until the day you lack a payment and this extraordinary deal becomes a nightmare. If you lack a payment you will not only be charged an extra fee, but also get your interest rate skyrocket. For instance, let’s say you own a common low interest credit card that offers a 7% interest rate. This same card will upraise the interest to 15% if you happen to lack 2 payments on the year. This higher rate can be held until you are able to pay six months in a row on time.
Being late can be fatal. In point of fact, you have to pay a fee for not paying on time and another fee for exceeding the limit of your credit card. It’s essential to be careful not to overlook paying on time or else you will miss the low interest offered by the card.
The bottom line concerning the credit cards with low rates of interest is never lack a single payment. It’s essential to always pay on time, if you want to maintain your exclusive low rate of interest.
To learn much more about what type of credit card will match your personal needs check out also www.BestCreditandCard.com, where you’ll find this and a lot more tips and advice, including how to find the best credit card offers.
Article Source:http://www.articlesbase.com/personal-finance-articles/how-to-qualify-for-credit-cards-with-low-interest-rates-837459.html
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