How to Get a Low-Interest Credit Card

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  • 2/20/12
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  • Low Interest Credit Card Offer
    Using high-interest credit cards can make it difficult to chip away at the balances you owe or even meet the minimum monthly payments. It is frustrating to see your payment go toward finance charges, barely touching the balance you carry on your card. If you hold high-interest credit cards, it is time to look for a card with a low rate that will help you pay down or eliminate your outstanding balance.

    Read on to learn how to obtain your own low-interest card.

    1. Maintain a good credit rating. Credit card companies save their best offers for consumers with excellent credit. The worse your credit rating, the more difficult it will be for you to obtain a card with a low interest rate.

    2. Consult a credit card comparison website to determine the annual percentage rate (APR) of various cards. The APR tells you how much interest you will owe the lender in a year and is measured as a percentage of the balance owing.

    3. Look for a fixed-rate card, which is often the best low-interest option. The interest rate of variable-rate cards may change at any time with little notice.

    4. Narrow the field by considering APRs, annual fees and any low- or zero-interest introductory periods. Ideally, your first choice will have a low APR, no annual fee and an introductory interest-free period.

    5. Apply with care. Do not send out a large number of applications, reasoning that one company is sure to accept your application. Every application for credit means a deduction of points from your credit score.

    6. Consider a secured credit card if your credit rating fails to qualify you for an unsecured, low-interest card. These cards require a cash deposit, guaranteeing the lender of payment. Secured credit cards offer a way to improve poor credit, helping you to eventually qualify for a low-interest credit card.

    Image Credit: Andre Rueda
    Written By: Shannon R

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