When it comes to getting a good credit card deal, it is always imperative to shop around and make a thorough research of the different interest rates before signing up for any specific offer. How important are interest rates in choosing the best card deals and how will you be able to compare low interest rate credit cards?
Studying the Importance of Interest Rates to Find the Lowest Offers
Don’t you just notice that whenever you chance upon any ad for a credit card that there is always a corresponding percentage or interest rate right next to it? The rate could be anywhere from 10% to as high as 20% or more. These percentages are all called the APR or annual percentage rate. This information tells you how much interest you will be paying for on top of the amount that you have borrowed (based on an annual computation).
For instance, if you have an average monthly balance of around $100, then, with an annual percentage rate of 10%, you are going to pay for $10 on top of your initial loan over the course of an entire year. This means that you can compare low interest rate credit cards by computing the repayment amount. Once you come up with the lowest amount, then it’s time to consider the bank that is offering the lowest APR.
One other good way to compare credit card interest rates is to know if you are being offered a variable or fixed rate. A variable rate often comes with low interest but there is a possibility that this rate would fluctuate. A fixed interest rate, on the other hand, should not fluctuate during the entire duration of your loan. There is, however, a 15-day advance notice where banks are entitled to adjust the rate.
Just make sure that you studied the financial market if you want to settle for a variable interest rate so that you will be able to make an intelligent forecast of the volatility of the market. Other than this, you can choose to settle for a fixed low interest rate credit card.
The Best Low Interest Rates
Different credit cards have different offer that is why it is always best to look around first before you even begin to consider any credit cards with low interest. The best way to start is to go online and type the keywords low interest rate credit cards. This should give you a good grasp of what is being offered on the market. You can also choose to scour your mails and look for credit card offers that are being sent out to you.
Remember that the best offers only come to those who have good credit histories. So, if you have an immaculate record, it is not impossible for you to get an offer of 10% APR or even lower.
The Lowest Offers
Most credit card companies now have competitive rates-if there are any rates at all! Most of them are now offering introductory rates of 0% (this rate is good for 6-12 months). 0% APR is the best rate that anyone could get but just be careful not to sign up just because 0% APR is being offered. It is also imperative that you ask the credit card company (or study their terms and conditions) what your interest rate will be after the introductory rate.
All in all, to get the low interest rate credit cards, you have to study every aspect of the financial offers that come your way.