Credit Guide

Just about every credit card ad you read touts its wares as "low interest credit cards." To determine whether this is accurate or not, you're going to have to look past the headline and into the fine print for the details. Here is some basic interest rate information to help you determine if that "low interest credit cards" are really "high interest credit traps."

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How To Find Low Interest Credit Cards

Be aware that Interest rates are variable. Credit card rates are set by adding a spread, or margin, to a base rate. Your base rate is often a widely used index rate, which is almost always a rate that changes periodically, without warning and for no reason.

Business and Personal Credit Card List There are a lot of different types of online business and low interest personal credit cards available today. Some of the major card companies are Chase, Fleet, Capital one, Discover, Bank One, MBNA and Amex. Each of these companies offer very low interest credit cards and some even offer 0 apr (zero percent APR) as an incentive. Since interest rates have dropped over the past few years, there are a lot of companies who offer low interest fixed cards.

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The spread that is added to calculate your rate depends on your credit history. If you pay your bills consistently and on time, the spread may be as few as 2 or 3 percentage points. If your credit history reveals that you make late payments, or have too much debt, the spread may be 5 or 6 percentage points or more.

Visit www.amex-visa-mastercard.com to review a listing of credit card offers that truly are low interest.

And don' If you have a higher credit score, you can generally negotiate a lower interest rate on credit cards. That's why it's always a good idea to check your credit score before applying for a card. If your score is above 600, you may qualify for a lower interest rate. If you have a low credit score or your credit is not well established, you may be turned down for a credit card or be required to get a secured credit card. A secured credit card requires a cash collateral deposit that becomes the credit line for the account. Almost every secured credit card charges an annual fee, and these fees vary, depending on your credit score.

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The advertised rate on a credit card is often the card's simple interest rate. The effective interest rate, however, is your true cost of borrowing and includes annual fees you pay to use the card. The compounded interest rate is a better barometer of your effective interest rate. For example, if your card has a rate of 12%, your monthly rate would be 1%. Because credit card interest is compounded monthly, the effective annual interest rate on a 12% simple-rate card is 12.68%.

With a little effort, you can find a great low interest credit card that is right for you.

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shop around for a credit card that matches your needs, such as one with a low interest rate or cashback Tick Do pay the balance off your credit card before the interest kicks in a or at least, make your minimum repayments on time Tick Do transfer any outstanding balances from your cards to one card that offers a low interest rate on balance transfers Cross

Apply Online For Credit Card About The Author

This article was written by Beth Pardue who has over 10 years of experience in the financial industry assisting clients with assorted financial needs. To learn more about credit cards or to apply for a credit card online please visit: Visit http://www.amex-visa-mastercard.com today!

Credit Cards You can save as much as a thousand dollars or more each year in lower credit card interest charges by paying off your entire bill each month. If you are unable to pay off a large balance, pay as much as you can and switch to a credit card with a low annual percentage rate (APR). For a modest fee, RAM Research Corp. ( 7714) rate cards. rate cards by accessing "www.ramresearch.com.cardtrack" on the Internet.

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Unfortunately, a low credit score virtually guarantees that you will pay higher interest rates on home and auto loans, credit cards or other forms of credit. How much more will you pay Experts say that a person with a low credit score, say, below 600, will likely receive mortgage interests rates that are nearly 3% higher than someone with a score above 700. In a worst case, you may be denied credit altogether.

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