Low Interest Credit Cards

For consumers that like to consistently carry balances on their credit cards, low interest credit cards are appropriate. Because the annual percentage rate of a card directly impacts the cost of borrowing money from the credit card company, consumers should compare cards to find the lowest rate possible. Many cards will have an introductory low rate to lure consumers in that want to consolidate debt to save money, and then will change to the standard rate. Consumers should be careful to review terms of any introductory rates as well as the standard rate after the introductory period.

The annual percentage rate and a consumer’s credit rating always have an inverse relationship. Meaning, as a consumers credit rating gets better, or increases, they qualify for a better interest rate to borrow money. As lending gets riskier, lenders charge borrowers higher interest rates. Because of this relationship, generally only individuals with excellent credit ratings will qualify for a card that has a fixed low rate. Some cards may have a low rate, but the rate is not fixed. Consumers should be conscious of comparing rates when choosing a card. If having a low rate on a card is important, then cards with a fixed rate a couple points higher than a card with a lower variable rate might be the better way to go.

When considering low interest rate credit cards, there are other factors to be conscious of. Though you may have a fixed rate card, making late payments, or going over your spending limit may be reasons to increase that rate on the card. .. expand

* Efforts are made to maintain accurate information, however this is not guaranteed. You should review full credit card terms and conditions on the application websites, first.