Almost 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. Now, no offer can get lower than that. However, before committing yourself to an account with a zero percent interest rate credit card, make sure that you are getting the best offer.
Commonly, a low interest rate credit card is a main attraction for clients to apply for a credit card company’s services. This is just an introductory rate that last for as long as six to twelve months. Now, after that introductory period expires, the interest rates are jacked up to as much as twenty to thirty percent.
An authentic low interest rate is usually offered to people who have high credit scores. On the average, creditors give a standard rate of about eleven to eighteen percent interest. The rate given is a case-to-case basis, depending on the individuals credit score. Usually, you will find these rates in the fine print, so always check this out before getting into an agreement.
It has been reported that on the average, Americans carry an outstanding balance of $8,000 or more on their credit cards in a year. Statistics say that the average interest rate on credit cards is 7%. With those data, an average American spends $560 a year on interests alone. Most pay even more than that for sure. That certainly is a significant amount. A low APR should be the most logical solution for this problem.
On the other hand, if you are one of the few individuals who pay their monthly balance in full every time, then you should not be concerned at all with interest rates. Why bother with low interest rates when you do not need to pay interests at all in this scenario.
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. Due to its demand, there are thousands of offers in the market. It is not difficult to find one.
Again, let me stress that when availing of a low interest rate credit card, always check the terms and conditions stated in the fine print. Commonly, these terms require you to pay your dues in time for you to enjoy low interest rates. One late payment and you might as well wave goodbye to the low interest rate forever. In most cases, the interest rates will jack up to as much as thirty percent. You will be stuck with paying your credit card bills for the incoming months with an amount that is way over your budget.
If you get to avail of a low interest rate credit card, remember to keep your credit report in high standings. The better your credit score is, the easier it is to avail of low interest rates whenever you want in the future.