Saturday, 28 April 2012

Do You Qualify For A Low Interest Rate Credit Card?

By Marsha Henway


You cannot overlook the value of a good credit rating - your credit rating determines many important life events. From buying a house to getting insurance, your credit rating is important. You can benefit from lower interest if your credit rating happens to be good, and even lower if you maintain good credit. And one benefit of good credit we shall discuss right now would be qualifying for a low interest credit card.

Depending on the bank where you are approved for, you can qualify for a credit card with a zero percent introductory annual percentage rate (APR), which can be extended from 6 to 15 months. The first few months are a great opportunity to save money, as no APR means no interest charges on the first few months of bills. But is it possible to get the lowest rate possible following the end of the introductory period?

Honestly, credit cards that offer no interest for the first few months aren't always worth looking at - you need to sort through the options first. There is a range of interest rates the issuer considers. A good option would be to take advantage of your good credit and go for a low interest credit card for better savings in the long run.

If you have a credit card account and usually have a balance owing, a low interest credit card would be the perfect card for you. With a new credit card that has a 0% APR introductory period, you can transfer the balance from your higher interest rate cards and pay down your debt interest free. You could still get a low interest rate credit card even after the 0% promotion is all over and done with.

It has probably taken you a few years to accumulate that good credit rating by budgeting and keeping within your financial means. Sometimes, though, life can be full of surprises, and make it hard for us to pay our bills. If this ever would happen, it would be the bank's discretion whether to raise the interest rate or not.

But at the end of the day, banks and other financial institutions are still run by human beings. After things get back to normal, you can always call the bank and ask if they can reinstate your interest rate. Look on the bright side - banks are businesses, and businesses value their customers.




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