To compare credit card rate offers successfully, you must first familiarize yourself with the industry and have a clear understanding of the terms and the way interest rates are categorized. Credit card rate offers are primarily based on the Annual Percentage Rate, or APR. They are often marketed to new consumers with 0% or extremely low percentage rates, called introductory offers.
But, they only last for a short time and after the end date, the true APR is revealed. Depending upon your credit score, you may see a significant increase. You can stay current with your credit history by logging onto AnnualCreditReport.com. Within a few seconds, you’ll have your credit report. Take this opportunity to study the information closely. Keep it handy and monitor your spending. After your introductory APR expires, you should receive a comparable rate. While there are some customers who will qualify for APR rates as low as 9% to 13%, the average APR in the United States is between 14.50% and 21.99%.
Top Credit Card Offers Worth Considering
Some of the top credit card offers come from Discover Card; the interest rates are very low and they have great rewards. Depending upon your needs, this credit card company offers various cards with a number of benefits.
Chase Freedom credit card is also a top choice because of the cash back bonus of $100 combined with an introductory APR of 0%. For six months, all purchases are charged 0% interest and balance transfers have 12 months at 0%.
Neither the Chase Freedom or Discover it credit cards have annual fees. A top pick for long-term low interest credit cards is the Simmons First Visa Platinum card. This card offers a variable APR of 7.25% and a balance transfer 7.25%. The major positive aspect of this credit card is the stable APR percentage. The consistent interest rate helps manage finances easier.
Additional Interest Rates Associated With Credit Card Offers
There are other interest rates associated with credit card offers and they can affect your rate as well as the APR. The finance charge is one such type. There are a few ways credit card companies calculate finance charges. Some use an adjusted balance; this method considers your beginning balance and applies current payments accordingly. The other method uses your previous balance, which can have higher finance charges attached.
Ask about minimum finance charges too. Balance transfers and ATM cash advances have different APR percentages. Each transaction is recognized by the APR percentage associated with the task and added to your overall minimum balance due. On average, balance transfer APRs are approximately, 16%; cash advances are usually over 20%, in addition to the fees charged by the bank.
Credit Card Ratings
When comparing credit card rate offers, it is also important to review their consumer ratings. You should know how they treat their current customers in all areas that can affect your experience. This includes how they reply to inquiries concerning, billing, payments, rewards and benefits. Each of these factors should influence your decision.
One of the top credit card rating companies, is JD Power. They have a detailed list of credit card companies and the most current satisfaction study for review. This is an excellent way to see how their customer’s rate their services, both individually and overall. You always want to compare credit card rate offers from reputable companies. After researching for a while, you will discover only a few top credit card companies that fit your requirements and expectations.
This will help narrow your choices. Although your choices will be fewer in numbers, you may still have some challenges to face. The simplest way may be for you to write down what you want from the credit card companies on your list and match their offers to your requirements.
If you have the mindset that you are shopping for a value rather than accepting an offer, your choice may lead you to the perfect credit card with the most comparable rate available.
Realistically, the choice is personal and shouldn’t be rushed. Choosing a credit card offer wisely may take a few hours or days, but the result must be positive as well as beneficial for you.