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kamran ahmad
The credit card balances are rising faster than consumers can pay for them. And with a card high interest rate, it can be difficult to even make a dent in the debt. According to Consumer Action, a nonprofit, membership-based organization, a March 2004 survey found that only 39% of people said they pay their credit card balance in full each month. So if you're like 61% of all respondents and carry a balance from month to month, then your number one priority for a credit card must be a low interest rate.
What is considered a low-interest
According to Linda Sherry, editorial director and spokesman for Consumer Action, anything below 10% is an attractive rate on the market today.
Look at the savings
Economies are really all that much with a low
Rate credit card? Here is an example to show you how you will save.
Say you have a balance of $ 2,500 on your credit
card, you make the minimum payment of 2.5%, and you do not add new charges to the card. With an APR of 18% (annual rate), you would need 20.3 years to pay the card off at the cost of $ 3,365.51 in interest alone.
If you are able to reduce the rate of interest
standard average fixed rate of 12.99% *, you will reduce the time it takes to repay the debt to 15.2 years and your total interest is $ 1,732.95 - a saving of 48.5% in During the 18% APR.
But if you can qualify for an APR of 9%, your
the debt will be repaid in 12.6 years with a total of $ 977.48 in interest - a huge savings of 71% on the map of 18%. And if you agree to pay the minimum payment the first month of $ 62.50 per month until the entire balance is paid, then you'll shave another 8.6 years and another $ 494.01 in interest.
Who can get the lowest rate
To get the lowest advertised, you will need a good credit rating. While most issuers have their own criteria for a good credit rating, Sherry said that in general, a FICO score of
675 + + is a good and 750 is excellent. If you are in a situation where you need to increase your current score, please read our article is a credit score calculated and how I can improve my
Credit Score?
Where you can find the lowest rates
If you have a good credit rating excellent and according to Gerri Detweiler, founder of DebtConsolidationRX.com and author of The Handbook ultimate credit if you pay 10-12% more than you need to start looking for one more card low and there are several avenues of approach.
Read your mail
Often the best deals come directly to your mailbox. But you need to read the offer carefully to determine if it is an introductory rate or a long-term rates (ongoing). In addition, Sherry says you should look for the words "you are
pre-approved "versus" you are invited to apply. "If it's an invitation, you can not benefit from the announced price, and you will not know until you ask. You must also be aware that you can not get the rate advertised in an offer pre-approved. In fact, you may even be declined for the card. Please be aware that almost all of these offers are e-mail marketing systems rather than actual pre-approved offers.
Learn to negotiate
Mail offers and other low rate credit cards you carry may come in handy as a bargaining tool with the issuer of your card. Scott Bilker, creator and author of DebtSmart.com talk your way out of debt credit card,
suggests calling your issuer and let them know that you are better deals elsewhere and you plan
switch to another card if they will not lower your rate.
Do not be afraid to take control ... in today's saturated market, the credit card issuers are looking to hold on to its customers. If you want to know exactly what to say to a representative of the credit card customer service., Bilker read book, which contains transcripts of telephone conversations with real representatives.
Banks and Credit Unions
When shopping for a credit card with low interest rates, looking for a local bank or credit union may be a good option. In addition to a good rate you can find the customer service more personal and appealing. But be wary of banks that offer a significantly lower rate than large banks or below, especially if you know your credit is not good enough to qualify. Another thing to consider is that introductory rate offers from local banks and credit unions are generally not as aggressive as introductory offers from major banks.
What is considered a low-interest
According to Linda Sherry, editorial director and spokesman for Consumer Action, anything below 10% is an attractive rate on the market today.
Look at the savings
Economies are really all that much with a low
Rate credit card? Here is an example to show you how you will save.
Say you have a balance of $ 2,500 on your credit
card, you make the minimum payment of 2.5%, and you do not add new charges to the card. With an APR of 18% (annual rate), you would need 20.3 years to pay the card off at the cost of $ 3,365.51 in interest alone.
If you are able to reduce the rate of interest
standard average fixed rate of 12.99% *, you will reduce the time it takes to repay the debt to 15.2 years and your total interest is $ 1,732.95 - a saving of 48.5% in During the 18% APR.
But if you can qualify for an APR of 9%, your
the debt will be repaid in 12.6 years with a total of $ 977.48 in interest - a huge savings of 71% on the map of 18%. And if you agree to pay the minimum payment the first month of $ 62.50 per month until the entire balance is paid, then you'll shave another 8.6 years and another $ 494.01 in interest.
Who can get the lowest rate
To get the lowest advertised, you will need a good credit rating. While most issuers have their own criteria for a good credit rating, Sherry said that in general, a FICO score of
675 + + is a good and 750 is excellent. If you are in a situation where you need to increase your current score, please read our article is a credit score calculated and how I can improve my
Credit Score?
Where you can find the lowest rates
If you have a good credit rating excellent and according to Gerri Detweiler, founder of DebtConsolidationRX.com and author of The Handbook ultimate credit if you pay 10-12% more than you need to start looking for one more card low and there are several avenues of approach.
Read your mail
Often the best deals come directly to your mailbox. But you need to read the offer carefully to determine if it is an introductory rate or a long-term rates (ongoing). In addition, Sherry says you should look for the words "you are
pre-approved "versus" you are invited to apply. "If it's an invitation, you can not benefit from the announced price, and you will not know until you ask. You must also be aware that you can not get the rate advertised in an offer pre-approved. In fact, you may even be declined for the card. Please be aware that almost all of these offers are e-mail marketing systems rather than actual pre-approved offers.
Learn to negotiate
Mail offers and other low rate credit cards you carry may come in handy as a bargaining tool with the issuer of your card. Scott Bilker, creator and author of DebtSmart.com talk your way out of debt credit card,
suggests calling your issuer and let them know that you are better deals elsewhere and you plan
switch to another card if they will not lower your rate.
Do not be afraid to take control ... in today's saturated market, the credit card issuers are looking to hold on to its customers. If you want to know exactly what to say to a representative of the credit card customer service., Bilker read book, which contains transcripts of telephone conversations with real representatives.
Banks and Credit Unions
When shopping for a credit card with low interest rates, looking for a local bank or credit union may be a good option. In addition to a good rate you can find the customer service more personal and appealing. But be wary of banks that offer a significantly lower rate than large banks or below, especially if you know your credit is not good enough to qualify. Another thing to consider is that introductory rate offers from local banks and credit unions are generally not as aggressive as introductory offers from major banks.
Posted in: Low Rate Credit Cards
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