Saturday, 26 May 2012

Low Interest Rate Credit Cards

Comparing Low Interest Rate Credit Cards

We all want the best credit card deal we can get and usually this means paying the lowest interest rates possible when we select a credit card. But how do you compare and choose a low rate credit card that is right for you and how do you make the most of it?

Understanding Interest Rates

Whenever you see an advertisement for a credit card, you will always see a percentage next to it. It may say something like 10%, 16.9%, 18% or even higher. This is the Annual Percentage Rate (APR) and tells you how much interest you will be expected to repay on the amount borrowed annually. If you carry an average monthly debt of around $50. With an APR of 11% you will be paying back an extra $5.50 on your initial loan over the course of a year.

The benefit of a low interest rate is that you will pay back less. With an interest rate of 8% you would only pay back $4 on the same loan. There are usually two types of credit card loans: fixed-rate and variable. The first refers to a fixed interest rate which shouldn't fluctuate during the course of the loan although, with 15 days advanced notice banks are entitled to change the rate. A variable (or standard variable) interest rate may fluctuate in line with the Federal Reserve's rates, resulting in higher or, rarely, lower rates than originally advertised.

What is a Good Low Interest Rate?

All cards and offers are different so it is worth shopping around and comparing interest rate deals. Generally it is a good idea to go for a fixed low rate credit card. You can compare rates by searching for 'low interest credit cards' online or you may find that you get deals regularly through the mail. It is worth comparing any offers that land on your doormat thoroughly. Low interest rates can be as competitive as 6.5%, sometimes even lower, but whether or not you are eligible for that rate often depends on your credit rating. You may find that you apply for this rate but, due to a poor credit rating, you end up being offered a higher interest rate. So if you are looking for a steady low interest credit card it is worth getting your credit rating into shape first. It is also worth reading the fine print on the credit card contract as there may be additional fees that will push up the rate of APR.

For example Pulaski Bank offer a low rate of 6.5% APR but also charges a $35 annual fee. The actual APR on a credit card offer may be higher than you might at first think. The low rate may only be an introductory offer. Beware of very low interest rate cards such as 4.9% and make sure that this isn't about to rise to 16% after six months. In addition, if you have a very high credit score than you should expect to not only pay the lowest interest rates but also to receive a credit card with excellent rewards programs such as free air miles, or cash back on purchases.

Comparing 0% Interest Rates, The Lowest You Can Go

The smart borrower doesn't pay interest at all. Almost all credit card companies now offer 0% introductory rates on credit cards, usually for between six to twelve months. 0% interest is of course the lowest interest rate you can ever pay on a credit card and it is perfectly possible to manage your debt so that it is always covered on an introductory offer and therefore never accrues interest. It is a very effective way to pay off debt without building up more debt. The disadvantages to the game are that you always have to stay on top of the deadline for the introductory offer and apply for a new credit card in time, before the real APR comes into effect.

If you forget about it, you may find you're suddenly charged a whopping 18.9% APR. Also, a person who sticks with a low interest rate credit card as opposed to changing between 0% offers may increase their credit score in the long term. Banks approve of customers who make them money and although no one wants to willingly give the bank money, doing so can lead to a better rating which, in turn, leads to lower interest rates and better credit deals. For more information: 0% interest rate credit cards.

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Friday, 25 May 2012

Best Credit Cards With Low Interest Rates

Low interest credit cards can be an important part of one's repertoire of credit cards. Low interest cards are useful for when you need to carry a balance from month to month. They are typically used a way to pay off a large purchase over time. To get the low interest rates offered by these cards though, one must generally have at least good credit.

The most important thing to consider with low interest credit cards is of course: the interest rate. You want as low of a rate as you can get, to minimize how much you will have to pay in interest charges. However, it is not always as simple as that. Many credit cards offer a very low introductory rate, as low as 0%, only to bump you up to a much higher rate (maybe 14.99% or even more) after several months or maybe a year. If you plan to consistently carry balances, you will want a credit card with a rate that stays low.

One other aspect of the interest rate to consider is the rate on balance transfers. If you are carrying balances on your other credit cards, you could save a great deal of money by transferring those balances to your low interest card. The key point to remember is that there is often a transfer fee of maybe 3%-5% to move the balance, so make sure to do the math to see if you will be saving money overall by transferring your balance.

All that being said, here are a few low interest credit cards with particularly good rates/offers and no annual fee:

PenFed Promise Visa: This credit card is offered by the Pentagon Federal Credit Union, to apply you must be a member of the credit union first. Typically, members must be a member of the armed forces or meet other requirements, but even if you do not meet those requirements, you can simply pay $20 to become a member. Even if you have to pay $20, that could be worth it because this card offers a low introductory rate of 7.49% for a full 3 years (36 months). After that, the rate will be the prime rate + 6.74%, which today is 9.99%. The best feature of the PenFed Promise Visa is that is has no fees whatsoever, not even for balance transfers.

Citi Platinum Select MasterCard: This low interest card from Citi is notable for offering an introductory rate of 0% on both purchases and balance transfers for up to 15 months, a remarkably long period of time. Afterwards, the rate will vary between 11.99%-19.99%. The great rate for balance transfers is only slightly soured by the 3% balance transfer fee.

Simmons Bank Platinum Visa: This low interest card is refreshingly straightforward in its lack of complexity and strings attached. There is no introductory rate that will change later. Instead you get a low variable rate that is currently at 7.25% and will continue to stay low into the future. Even better, you have the option of transferring balances onto the Simmons Bank Platinum Visa when you apply without any balance transfer fee, making it even easier for you to take advantage of that low rate.

Visit to find bests low interest credit cards on the market.
Good luck..

Thursday, 24 May 2012

Low Interest Credit Cards

Low Interest Credit Cards - Identifying the Ideal Value

Low interest credit cards
are generally effective for the people seeking an easily accessible personal credit line should there be an emergency. They might be especially beneficial if the user plans to make use of the benefits. Nevertheless, with just about any monetary decision, there are numerous elements you'll want to consider while evaluating these types of credit card offers.

People who have a high credit history commonly tend to get the best features on low interest credit cards. For this reason it is vital that you boost your credit score as much as is possible in advance of obtaining a card. Paying up your charges by the due date, maintaining any and all credit lines you at present have beneath the prescribed credit limits, and making certain the debt to income ratio isn't exorbitant are ways to enhance your credit rating. In addition, keep an eye on your credit with cost-free credit checks to ensure that your financial information it is in fact being reported is accurate.

Be sure to look into the additional fees associated with the bank card before accepting any deals. Usually issuers will lure prospective customers with low interest credit cards, and then turn around and impose more costly fees and/or an annual service charge. This most definitely is not best for the cardholder. It is essential to make sure you go through the agreement and also the terms and conditions that accompany each cards to ensure you are obtaining the best deal to suit your needs.

Several cards also provide zero interest, at least for a specified amount of time after you are authorized for the bank card. These bank cards usually are useful for somebody who requires a credit card immediately, and yet will have the balance paid off prior to the offer expiring. Just as with any offer, nonetheless, you have to furthermore understand the various other extra fees that come with the charge card. The zero % APR will not do you a whole lot of good when you're charged an arm and a leg for being one day late with your payment.

Receiving a credit card which includes a low annual percentage rate is usually useful for quite a few situations. In advance of choosing from all the low interest credit cards made available, it is necessary that you consider some details. Possessing a favorable credit ranking will allow you to acquire far more promotions and much better plans on charge cards.

It is necessary that you really educate yourself on the service fees as well as other expenses related to possessing a specific card. Additionally, consider getting yourself a low interest rate credit card which has a 0 interest rate promotional period, provided that you intend to repay the balance before the specific offer expires.

Have a look at to assess low interest credit cards from the most reputable issuers. You will also find many 0 percent credit cards offering significant savings.