How to get the best credit card rates

How many times a day do you receive offers through email? Or that call for a free credit card with some money back offer, along with the possibility of a low introductory rate and other wonderful perks of the credit card world?

So, How to get the best credit card rates?

Look, all banks, credit unions and other financial institutions compete for maximum customers by deluging the public with a myriad of perks to tempt customers into taking their card deal. In reality, a credit card is nothing more than another form of borrowing money to be repaid at a later date.

How to get the best credit card rates by choosing using these factors

In the long run, it is better to choose a credit card that will offer the best rate for your score.
Why over pay interest to the banks? Take your time and compare credit card, terms and fees point by point, prior to applying and accepting a credit card account. Do the best in your selection process to find a credit card that has the interest rate that best matches your particular needs and budget.

The APR (annual percentage rate) is the calculation of the cost of credit credit cards usage fee expressed as a yearly rate. Keep a look out for variable or changing rates before accepting a credit card as some credit card issuers have in the fine print interest rates that can change with the Federal Reserve, LIBOR or on their own economic trends. This offer is called a variable rate program and when you first get your card it is not uncommon for something like an 8% interest rate, however with any economic trends that trigger their index changes, your interest rate may change to 14% overnight (oh, you will get an email or letter letting you know this has happened). Bottom line is you will later have to pay more interest with your new interest rate!

How to get the best credit card rates by using fixed rate or variable rate cards?

So walk on the side of caution and confirm if the credit card your are applying for is a ‘fixed rate’ or variable rate program. A fixed rate card is just what it claims to be with no change in the annual percentage rate, even when economic trends change.

How to get the best credit card rates? You also want to verify if the card you are applying for gives a ‘grace period’. A grace period is a time frame where you can avoid extra finance charges by paying your balance prior to its due date.

Next you will want to check if the card charges an annual membership fee or any other associated transaction fees. In the long run, it’s better to select a credit card company that is offering the lowest additional costs! With more additional costs there are, the more money you will have to pay the card issuer! We have seen card issuers that advertise on TV and even sponsor a NASCAR race car, that charge $8.99 per month for a $500-$1,000 credit line for bad to good credit.

In conclusion, when sourcing credit cards, it is in your best interest to consider if the credit limit and associated fee costs are suitable for you. Once you weighed out your offers, only then should you apply for the credit card (also, you don’t want any extra inquires on your credit report that will hover there for the next two years!). To get the best rate on a credit card, read all the fine print and make sure you understand all terms and conditions of the card before submitting the application.

We hope this article helps you a bit more in your quest for credit, and we do hope you can maintain and grow your credit score!

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How to get the best credit card rates

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