Low Interest Rate Credit Card: A Hot Commodity
Posted at by ifydcat on category CreditAlmost all credit card companies offer a low interest rate credit card. In fact, search for it in the Internet and you will find so many that offer zero interest rates. That’s the lowest offer you can get. However, before committing yourself to an account with a zero percent interest rate credit card, make sure that you are getting the best offer.
A low interest rate credit card is usually what lures clients into applying for a credit card company’s services. This is just an introductory rate that lasts for as long as six to twelve months. Once that introductory period expires, the interest rates rise up to as much as twenty to thirty percent.
An authentic low interest rate credit card is usually offered to people who have high credit scores. On the average, credit card companies give a typical interest rate of between eleven to eighteen percent. The rate given is a case-to-case basis, depending on the individual’s credit score. Most of the time these rates are hidden in the fine print, so always check this first before getting into an agreement.
The reported average outstanding balance that Americans carry on their credit cards annually is at least ,000. Statistics say that the average interest rate on credit cards is 7%. Given those data, the average American spends 0 per year on interest alone. Most people undoubtedly pay even more than that. That certainly is a significant amount. The most rational solution for this problem would be a low interest rate credit card.
On the other hand, if you are one of the few people who pay their monthly balance in full all the time, you don’t need to worry about a low interest rate credit card. In this case, why bother with low interest rates when you don’t have to pay any at all?
Most of us, though, carry a balance forwarded to the next month. Aside from that, it is a not unusual that we use our credit cards for purchases that we cannot pay in full on that given month. That is the reason why a low interest rate credit card is so in demand in this country. Because it is in demand, thousands of offers have sprouted up in the market. It is very easy to find one.
Again – and it cannot be emphasized enough – always check the terms and conditions written in the fine print when getting a low interest rate credit card. Usually, these terms require you to pay your dues punctually in order for you to enjoy low interest rates. One late payment and you might as well wave goodbye to the low interest rate forever. Most of the time, the interest rates will balloon to as much as thirty percent. You will then end up paying for credit card bills with amounts that you cannot afford.
Remember to keep a high credit report standing if you obtain a low interest rate credit card. The better your credit score is, the less effort you will need to avail of low interest rates in the future.