How to Find the Best Low Interest Cards

If you’re in the market for a new credit card it’s important to shop around to find the best low interest cards available. A low interest rate for a credit card is typically consider to be under 15% with some of the best cards being under 10% APR (Annual Percentage Rate). Getting a low interest rate card will help minimize monthly payments and amount paid in interest for any purchase made on your credit card. If you’re the type of person that normally carries a balance on their credit cards, finding a lower interest rate can save you thousands.

Unfortunately, not everyone is going to qualify for a low interest rate credit card. If your credit is less than perfect then odds are you will be offered an interest rate much higher than somebody who has perfect credit. This can be a slippery slope for people with bad credit. The more cards they open the worse their credit score gets and the higher interest they will have to pay.

Introductory Rates on Low Interest Cards

Often times credit card companies try to entice consumers to sign up for their credit cards by offering low introductory rates. You will find a lot of credit card companies offering cards with 0% APR. It’s important to understand that once the introductory period is over your rate will be jacked up and applied to any outstanding balance. 0% today could be 25% or more in 6 months to a year (whenever the introductory period expires).

How You Can Get Low Interest Rate Cards

• Improve Your Credit Score - The very best thing you can do to qualify for low interest rate cards is to improve your credit score. This is true any time you plan on applying for credit.
• Shop Around - Odds are the very best deals won’t be cards you get letters for in the mail or find advertised online. You will have to do a little digging to find the best possible rates. Reading online reviews can help you to determine what kind of rate you may qualify for based on your credit score.
• Consider a Secured Card - If your credit rating is less than perfect then you might want to consider a secured credit card. These cards require a deposit and your limit will only be as high as your deposit. Due to the fact that you’re essentially borrowing against your own money it’s easier for banks to provide a low interest rate on these cards.
• Don’t Apply for More than One Card at a Time - This is important because every time you apply for credit a hard inquiry is made on your credit report. Every hard inquiry can lower your credit score a few points. If you are applying for several cards at once, by the time the second or third company reviews your credit report your score may have already dropped significantly.
• Understand Requirements - You should only be applying for a low interest rate card that you believe you can qualify for. It’s important to understand what’s required to receive the lowest rate possible. You can always ask customer service or do a little research online to figure out if you will be able to qualify or not before you apply and make that hard inquiry on your credit report.