Credit cards though an expensive proposition anytime still continues to be the lifeline of several homes and businesses. It can be rather considered an expensive finance option with APR rate as high as 20% APR at an average. However, as the competition soars to new heights and lenders are trying their best to woo customers with new offerings in services and products, it’s the customers who are really having a ball.
In the present scenario of global meltdown and financial upheaval, financial institutions including credit card companies are coming up with revised low interest rates for their customers and other features, so as to expand their clientele. A study has shown that most of the customers who are found looking out for low interest rates in credit card are also at the same time seeking the best credit card with affordable rates. Therefore, it is a real win-win situation for the customers as they can buy the cake and eat it too.
Another interesting observation that has come up during the study of customers and their affinity for low interest cards is that while the interest rates for credit cards have witnessed a correction, there is no concrete reason why someone should opt to pay high rates except if you have credit rating problems and might find yourself in a fix to get accepted for a low rate credit card.
Know the Facts
When you are out scouting for the best offer in low interest credit card, there are a few things you need to consider before opting for a credit card, other than the alluring introductory rate. Even when the credit card companies are competing for your business, it is important that you look at the finer prints before you apply, so that you are not caught unaware and more importantly do not get ripped off by unscrupulous vendors. At the same time it is important to authenticate the credibility and reputation of the credit card company you are trying to strike a chord with.
ü Know and understand the annual percentage rate (APR), which is the benchmark for comparing one card’s interest rate to another.
ü APR also specifies the amount of interest you will owe the credit card company in a year, and is measured as a percentage of your balance.
Find out if the credit card you will be applying for will be of fixed interest rate or variable rate.