For most of the people who are searching the internet to obtain the best credit card Factors like APR, annual fee will be the most important factors. Some people will only check out the low interest rates. In fact there are some other factors you need to check out before applying for your first time credit card. Offering the low interest credit card or 0 interest credit card is one of the main tactics most of the credit card companies are using today to attract many new customers.
What should you consider for getting best credit card deals?
To make you clear on getting the best credit card we explain you from basics. Do you know what is meant by annual percentage rate or APR?
To state APR in plain language it is the interest rate which will be used by your credit card company when you keep balances on your credit card. Thus it is clear, when you have low interest rate credit card obviously you will be getting very less interest rates in your monthly billing cycle. This is the reason for the popularity of low rate credit cards.
Anyhow there are some other people who will use the credit card much the same way as one using their charge card. They will pay their monthly bills in the grace period itself that is they will pay on exactly their monthly due date. When you use this card in this way no interest will be added to you account. So even if they have low rate credit cards it will be of no use to them. Getting the low interest rate credit cards is not a very good deal for them. If you fall in this category type of credit card which best suit to your need will be rewards credit cards or air miles credit cards.
0 interest rate credit cards will help you to slow down the interest rate at which the credit card debt starts to build up. Obtaining the low interest rate credit card will be very useful for the people who can’t pay their bill on the due date every month.
Yet another group of people who are in the need of low interest rate credit card are those who are seeking the help with the debt consolidation. Debt consolidation is a process in which people consolidate their all debt into one single payment. Mostly they will transfer the debt to a new low interest rate credit card.
Who is eligible to get the low interest rate credit card?
Since credit card offering companies can take only a minimal amount of profit from the 0 interest credit cards they will issue these cards only for the applicants with good credit score. So their risk will be minimized. So if you want to get a low interest credit card you should maintain a good credit rating.
If you decided to take the low interest rate credit cards then compare as many cards as possible and check out number of benefits provided with these credit cards. Regardless of the type of low interest rate credit card you are going to apply for make sure you fully understands the terms and conditions. Also note many credit card companies will offer 0% interest rate only at the introductory period after that it will change into higher interest rates. So you should take this factor in to account when comparing the low interest rate credit cards.