Credit cards with low interest rates are constantly advertised in the market. Does your current credit card have a high interest? Perhaps, you may be thinking about getting one of these low APR cards yourself. But before you do, check out these important pointers about low APR credit cards:
How long will the low APR / 0% APR last?
Low APRs don’t last forever. Some credit cards offer a low rate for only 3 to 6 months while other credit cards provide a lengthier promo period of 12 months or more. When looking for a new card, make sure that you are aware of the introductory period. Also, you’ll want to check how much the interest rate would be when the introductory period expires. Make sure that the interest would remain reasonable for a long term.
The annual fee cost. How much would you have to pay each year to keep your card active? Interestingly, you can find credit cards today that aside from the low rate, do not carry annual fees at all. Think about it, a free annual fee can save you from $50 to $80 in a year, depending on your issuer.
Other costs. Okay, so the card has a low APR and no annual fee, but what about the rest of the costs? How much is the late penalty charge, balance transfer charge, transaction fees, etc? Take note that some credit cards may get back on you by adding hidden costs or unnoticeable charges on your account. To be clear about ALL the costs of your card, read the Terms & Conditions.
The length of grace period. Even if the card has a lower rate, you still want one with a sufficient length of grace period. Some cards offer very little or do not have this provision at all. Remember that the grace period gives you the chance to pay off your balances without paying any interest at all. Ideally, you’ll want a credit card with at least 25 to 28 days grace period.
Your credit score. Yes, your credit history and credit score plays an important role in applying for a low interest rate credit cards. It is worth noting that the best deals always require either good or excellent credit. It is recommended to check your credit report first to see if you’re qualified or if your credit needs some improvement. If your credit rating isn’t impressive enough, give yourself a few months to work on raising that score before applying for a low rate card. Otherwise, a poor credit may only get your application declined and hurt your credit even more.
Compare credit cards. Take the time to research and compare different credit cards in the market. Never make decisions in a rush. Check out online reviews so you can have a better idea about which cards have the most promising potential. Last but not least, read and understand the Terms & Conditions before signing up and submitting your application.
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