A credit card can be a helpful tool in managing your monthly finances when used responsibly 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 to keep your balance under control and ensure you don't get in over your head with credit card charges.
Read on to learn more tips from GOBankingRates about how to get the best interest rates for credit cards, which 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.
Before filling out a credit card application, perform a credit card rates comparison that examines several cards from several companies.
A 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 and credit card promotions of a card.
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 your highest priority (in addition to finding low credit card rates, of course).
No matter what type of card suits you best, compare many of the best credit card offers from a variety of companies. This will enable you to locate the best credit card rates and perks, which is essential in making a credit card helpful, and not harmful, to your financial situation.