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How To Get a Low Interest Credit Card
Consumers often have the first credit card that they ever
applied for, never really analizing how the interest rate affects
their payments, but many other options exist and can help
consumers decrease their payments and achieve financial
stability.
With interest rates on some credit cards rising to over 23%, even
low balance credit card debt can be crippling. One of the first
research elements a prospective borrower should look at is the
interest rate on transferred debt. This interest rate is often
lower than the usual interest rate for the credit card, and can
be an especially good deal for borrowers who have debt already.
Another element to consider is the interest rate on new purchases
- this rate will be the main concern in the years to come, as
this new credit card will probably become the most heavily used.
Borrowers often worry about annual fees, but these are often
temporary. Getting a credit card with low interest rates will
save a borrower significant sums, usually much more than the
annual fee. Plus, once good credit is established, the annual fee
may later be waived.
Another interest rate will usually apply, as well - the rate for
cash advances. Cash advances are usually limited to a couple
hundred dollars, but credit card companies often insist that when
paying back the balance, the credit portion must be paid back
first, then the portion that the cash advance applies to. So if
you are going to keep a balance on your credit card, be aware
that cash advance interest rates are higher than the regular
interest rates. Cash advances can be incredibly helpful in
emergencies, though, when a credit card cannot be used.
Visa and MasterCard are by far the most commonly accepted credit
cards, so less commonly used cards such as American Express and
Discover often offer special rates for new customers. These rates
are worth attention, even if you think that you may not be able
to use the card as easily as your previous credit cards, because
transferring the balance to these new cards to obtain the lower
interest rate may significantly lower your payments. While your
AmEx or Discover Card may not be accepted as often, they can be a
good tool to achieving your financial goals.
Even less commonly used are credit cards that are store specific,
such as gas cards or department store cards, but these cards can
offer incredible deals on interest rates. They rely on the fact
that consumers will often switch their spending patterns to the
new gas station or store, and this increased revenue makes up for
the lower interest rates. A slight change in your habits, such as
consistently using the new credit card at the new gas station,
can lower payments and improve credit scores.
Researching new credit cards can seem daunting, but by comparing
the four main factors, which are the regular interest rate, the
rate on transferred balance, the rate on cash advances, and the
annual fee, you can reduce your credit card payments
significantly.
The author runs the finance website http://www.pawninfo.com about
short-term loans and payday loans, and any or all of this article
may be reproduced in any form as long as there is a link to the
website. Pawn
Shops and Short Term Loans
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