When in search for a low interest rate credit card, or any kind of credit card for that matter, it is very important to get to know all the details than simply making a choice out of what you hear or see from advertisements.
Be A Smart Credit Card Shopper
Everything you need to know about a good credit card should be in the fine print. Credit card issuers are mandate by the Federal Law to disclose all terms and conditions, including the exact rates and fees in the Agreement. While the Terms and Conditions may be lengthy and difficult to read, you should not overlook this very important step: Always read and understand the fine print.
Don’t compare credit cards based upon their interest rates alone. For instance, if you have to choose between a credit card that offers 10% rate compared to a credit card that offers 12% rate, which one would you choose? Would you instantly pick out the card with 10% rate, just because it’s lower by a few points?
Keep in mind that the interest rate isn’t the only factor that makes a good credit card. Listed below are the specific factors that you should check out:
The rate after the introductory period.
How much would the regular interest rate be when the introductory period expires? A good credit card should maintain a reasonable rate of interest even beyond the introductory period.
Balance transfer fee.
Although you will not incur interest rate on the balances you’ve transferred, how much would you have to pay each time you need to transfer a balance? Some cards may charge up to 3% of the total amount you are transferring so if you’re going to use the card to consolidate multiple debts, you need to consider this important aspect.
Annual fee.
Some zero rate cards impose annual fees which can range from $50 to $100 but if you do your research, you should be able to find reasonable credit cards which do not carry annual fees at all.
Late fees and exceeding credit fees.
What about the penalty charges? Credit cardholders must always submit payments on time but in case you fail to do so, how much would you be charged? Don’t forget to look for a credit card that imposes reasonable fees, including penalty charges.
