Learn About Low Interest Credit Cards Tips
Read these 6 Learn About Low Interest Credit Cards Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Credit-Cards tips and hundreds of other topics.
My low interest rate disappeared, now what do I do?
To qualify for a low interest rate credit card after your interest rate has been raised, the only solution may be to raise your credit score over time. To do this you will have to consistently pay your credit card bills and other loan payments on time.
Late payments on any of your credit card accounts can affect your low interest rates on any other account, even if it's not with the same company. Improve your credit score by borrowing responsibly from all lending sources.
0% interest rate time limitations
Before you jump on that 0% interest credit card offer, find out how long the 0% interest rate lasts. This information should be available in the mailer you received or on the Web site you are looking at. Introductory interest rates can last anywhere from a few months to a year. If you can't find that information, call the customer service number and ask them. You'll also need to know what the interest rate will be after the introductory offer expires. If it's too high, look elsewhere for a better 0% interest rate credit card offer.
Another reason to pay all your credit card bills on time
To maintain your low interest rate on your low interest credit card, make sure you continue to pay all of your credit card bills on time. This is important because each credit card company monitors your account activity with the other credit cards you own. If you make a late payment on one credit card, it will affect the interest rates of all your other cards.
Hold out for a low interest credit card
Don't settle for a credit card with a high interest rate. Shop around online for an interest rate that is as low as you can be approved for. By working on improving your credit score, you'll be able to qualify for better rates over time. Many credit card companies will even offer a 0% introductory interest rate to encourage you to consolidate your other credit card balances with their new 0 interest credit card. This can be a great way to make your monthly credit card payments maneageable. Just be sure that you pay off as much of the balance as you can during the introductory period and that you know what the interest rate reverts to when the introductory offer is over.
Do not be fooled by the many credit card offers out there that do not offer a low interest rate. There are many low interest credit cards (some with 0% APR) available for the taking by consumers providing their credit score is worthy enough of the offer. If the credit score is not so good then the credit card company may adjust their offer to a higher interest rate credit card but still granting the approval. The worst-case scenario is that the consumer is denied credit altogether due to a poor credit score. Bear in mind that companies offering low rate credit cards are not going to waste a good offer on someone who bounces from low interest credit card to low interest credit card. They are also not going to waste their low rate credit card offer to someone with bad credit. These offers are reserved for consumers who have a credit history of on time payments, not charging the full credit limit on their credit cards, and who will remain loyal to the credit company for a long period of time without bouncing around.
Reduce the interest rate on your credit card
Call your credit card customer service number to ask for a low interest rate on your credit card. If you have paid your bills on time for a regular period of time, they may agree. Although the credit card company has no obligation to reduce your rate, it is in their best interest that you pay them, so they may be willing to work with you.
If you have bad credit, look for a credit card that offers to reward you for regular payments. Some credit cards will automatically lower your interest rate as you responsibly pay your bills over time.
0% interest rate terms and conditions
Before you start charging everything to your new 0% interest rate credit card, make sure you know exactly what the 0% interest rate applies to. By reading the fine print of your contract, you may find out that the 0% interest rate only applies to balance transfers. This would mean that everything you charge to the card regularly may rack up a lot of interest if you don't pay it off during the grace period. Cash advances usually aren't covered by the 0% interest rate introductory offer either. If you have any questions about the details of your contract, call the customer service department for clarification. This can save you from an unpleasant surprise when your 0% interst credit card statement tells you that you owe interst.
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