A credit card can be a helpful tool in managing your monthly finances, or an entrance into overwhelming debt when used improperly. Credit cards are great for building credit, handling big expenses and earning rewards, but it’s important to pay the balance in full and on time, or else you’ll be faced with interest charges and fees.
Aside from using credit responsibly, seeking out the best credit card offers can help you keep your balance under control and ensure you don’t get in over your head with credit card charges. Learn more about how to get the best interest rates for credit cards that will help you save money on interest charges each month.
Average credit card rates tend to fluctuate over time, but generally hover around 15% APR. Knowing the average credit card rates when you’re applying for a card will help you determine whether you’re being offered a competitive rate or not. Keep in mind, your credit affects the interest rate you’re offered, and having very good – or very bad – credit means average credit card rates may not apply to your situation.
The best credit card rates are reserved for people with positive credit histories and scores. Generally, a fair or poor credit score will prevent you from obtaining the best credit card offers – poor credit makes you a risk to creditors and they will usually charge a much higher interest rate to compensate for that risk. Therefore, if you do qualify for a credit card without possessing excellent credit, the high interest rate will likely make paying off your balance more difficult and expensive.
If, on the other hand, you have good credit and a high credit score, the best credit card offers will be easy to qualify for – the only thing you’ll have to worry about is finding the credit card companies offering those great rates.
After you’ve cleaned up your credit and are considered to be a prime credit customer, locating low credit card rates is all about comparison. Just because you qualify for the first card you apply for doesn’t mean it’s the best one for you. Before filling out a credit card application, perform a credit card rates comparison that examines several cards from several companies.
Credit card rates comparison is an important step in choosing the best card for you, but it should not be the only one. In additional to the best credit card rates, you should also be looking for other positive qualities of a card.
For instance, does the credit card come with an annual fee? Sometimes the fee is worth it when low interest and account perks more than make up for it. Sometimes, however, a credit card’s annual fee is so high it cancels out the savings you would enjoy from a lower rate.
What about rewards? Many cards also offer generous credit card rewards in the form of points, cash back or airline miles. If you’re a frequent traveler, for instance, finding a credit card that lets you earn miles might be you highest priority (in addition to finding low credit card rates, of course).
No matter what type of card suits you best, comparing many of the best credit card offers from different companies to locate the best credit card rates and perks is essential in making a credit card helpful, and not harmful, to your financial situation.
There are many reasons why credit card use can go wrong. That is why knowing how and when to use a credit card is important. The following lists out great informational tips on how to use your credit card responsibly and prevent you from becoming a victim of credit card fraud: