T Go Searching For A Credit Card Everyday

Category: Finance.

For many people searching for a new credit card online, the annual interest rate, or APR seems to be the only important factor, and many will only check out low interest rate credit cards before making an online credit card application.

But should low interest credit cards be the only ones on your list when searching for the best credit card deal to suit your personal requirements? Credit card issuers also tend to advertise the low interest rate credit card more that any other kind of card. Probably not. It may help if we start by understanding exactly what an APR( annual percentage rate) is and where its relevance lies. APR is not the only thing to look for when choosing your ideal credit card. APR is quite simply the interest rate used to calculate interest on the balance of your credit card account. Therefore a low interest credit card account would have less interest charges applied to it at the end of each month, hence its popularity.

This interest is then added to your monthly bill to form your new balance. However, there are those individuals who don& #65533. This group for the most part will use a credit card in much the same way as a charge card, paying the full balance on the credit card account on the due date each month. T really need low interest rate credit cards. There are no interest charges added to an individual s credit card account if they make the full payment on their bill by the due date. Therefore a low interest rate credit card would not be such an attractive deal to this group of card holders.

So it would make no difference what interest rate was attached to their card if they were to use it in this manner. They are much more likely to be attracted by other card offers like cash reward or air miles reward credit cards. Thus low interest credit cards are more important for a particular group of people, who are confident only in making part payments on their card account each month. A low interest rate credit card will certainly help to slow down the rate at which your credit card debt builds up. Another group of credit card applicants in search of low interest rate credit cards would be those people who are wanting to consolidate their total debt from one or more other cards onto a new credit card. So the need for low interest rate credit cards is felt more by a particular group of people.

In this instance a low interest rate credit card may be much more desirable, as they would typically be looking to reduce their monthly commitment, and it would make little sense to transfer the debt to a credit card with a higher interest rate attached to it. However, it is worth remembering that a low interest rate credit card is typically offered only to those applicants with a good credit rating. This is the reason why the card issuers will only offer a low interest credit card to card holders with a proven track record in repayment of credit. Obviously the card issuers make less profit from card holders with a low interest credit card, which means that the risk factor increases. Once you have reached the decision that a low interest rate credit card will be more likely to suit your personal requirements, you then need to take the time to compare other benefits offered along with these cards. There are low interest credit cards which often offer APRs of less than 8% on purchases. Low interest rate credit cards are mainly divided into two categories.

And, for cash advances the low interest credit card will offer APRs of 10% or less. Cash rebates are automatically credited to the cardholder s statement each month, and there is often no limit to the amount of cash rebate that can be earned. Then there are certain rewards programs attached to many of the cards which offer cash back rewards on purchases, travel or even, gas office supplies. Now, there is one thing you must always do regardless of which low interest credit card you choose to apply for. If you are unsure of any points, seek advice. Read and make sure you understand the small print with regard to the contract you will be asked to sign once your application has been accepted. Be aware not only of the interest rate( APR) attached to the low interest credit cards you may be considering, but for how long will this lower interest rate continue.

A variable rate card is often offered with a low introductory rate as an incentive, but this rate can increase at any point in time. Is it likely to rise to a higher rate after a short period of time? Keep in mind that the APR is actually where the credit card company earns their profit. Remember, it is definately worthwhile your effort in researching the various options available, taking advantage of website comparison charts etc. If they were to continue offering card holders the low APR indefinately, there is a good chance they would not stay in business for too long. Should you do decide on a low interest credit card, do the math and choose well. T go searching for a credit card everyday.

After all, you don& #65533. Trevor Taylor

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