Websites like this one are a great way to start looking for a low rate credit card. Credit card rates can be confusing at first especially if you have the type of credit card that can change rates without you knowing.
If you are looking for the best credit card rates, you’ve come to the right place! Use the credit card finder now!
You can learn what types of credit cards offer the best rates and what it takes to be approved for one of these cards. Many great resources can explain the more intricate aspects of interest rates. Internet sites like MyMoney are a great place to start.
What are the benefits of a low interest rate credit card?
A credit card with a low interest rate is a great credit card to try and be approved for because the cardholder will save a lot of money not having to pay a lot each month in interest payments. To be approved for a low rate credit card someone must have a good credit score, but many providers today offer an introductory low rate on many of these cards.
Typically, these low interest rates do not last very long. These special low rate usually only last for the first six months to a year the credit card account is active. Once the introductory offer expires the credit card’s interest rate is determined by the credit cardholder’s personal credit score.
This type of credit card is a great choice for someone that has debt on another credit card with a high interest rate. The cardholder can transfer the balance of the credit card with the higher interest rate to this low interest rate credit card and save a lot of money they would be paying for interest. It is important to know that with the majority of these introductory low rate credit cards if the cardholder is even one day late with just one payment they will forfeit the low interest rate.
How does a bad credit history affect credit card rates?
If someone has a poor credit history, they will not be eligible for a credit card with a low rate. They would have to repair their credit score before they could begin being approved for low rate credit cards . A secured card might be the best solution for this.
For someone that has a spotty credit history a secured credit card might be a good choice for them to start rebuilding their credit score. This credit card is very different from other credit cards because the cardholder has to put down a security deposit as secured collateral for this card.
Usually the cardholder has to put down at least $200. For some secured credit cards, they do not need to pay this deposit in one lump sum. Once the cardholder is approved for the secured credit card they can make installment payments toward the initial deposit. Once the minimum amount has been reached, the credit card provider will issue the card to the cardholder.
This type of credit card helps rebuild the cardholder’s credit because their card activity is sent to the three credit bureaus. The three credit bureaus are Experian, TransUnion, and Equifax. As long as the cardholder does not go over their credit limit and makes all of their credit card payments on time, they will slowly begin to rebuild their personal credit score.
Another group that can find it difficult to be approved for a credit card like someone with a bad credit history is someone with no credit history. This problem mainly plagues young people, college students especially. College students often have no positive credit history, but if they carry any student loans, they can show a negative credit history.
A great solution for them to start building their credit score is to get a student credit card. These types of credit cards are a great way for a young person to learn financial responsibility. These credit cards often offer some type of rewards program that rewards responsible credit card habits. A good example of a reward is a cash back bonus if the cardholder pays their credit card bill on time every month for a full year.
Does someone with a good credit history always get lower credit card rates?
Someone that has a good credit history and good credit card habits can often be approved for a rewards credit card. These credit cards offer rewards to cardholders that use their credit cards a lot. A typical rewards program gives the cardholder a certain number of rewards points for money they spend with the credit card. Once they have saved enough points the cardholder can exchange them for a reward.
Many of these rewards credit cards offer frequent flier miles, which is a good choice for a cardholder that travels a lot. In addition, a cash back rewards card would be a great choice for someone that is trying to save for a big purchase or retirement.
Even though these cards can be very tempting because of the rewards possibilities, these cards can often have higher interest rates. This shows that just because someone can be approved for a hard-to-get credit card, does not mean they will necessarily have the best rates.
Compare credit cards and find the one that best fits your needs with the credit card chaser!
- Amegy Bank of Texas Visa Secured Credit Card
- First Bank of Delaware Granite MasterCard Credit Card
- I have no credit history. Can I get a credit card?
- Hanscom Federal Credit Union Visa Platinum Secured Credit Card
- Florida Credit Union Fresh Start Visa Credit Card
- Can banks check my credit cards history?
- Arkansas Federal Credit Union Visa Secure