Tag Archives: Low Interest Credit Cards

0% APR Introductory with Balance Transfer Option

The Christmas Holiday Season brings retailers 25% and more of their yearly sales. It is safe to assume the month of January most likely shows the highest consumer credit card balances. As impulse buying often is the culprit in charging more than we planned, it is easy to see how one could get carried away during the ‘season of giving.’

Now it’s January and those bills have started coming in. Two or more credit cards with high balances can take a bite out of your budget. The easiest solution for many consumers is to apply for one of the many 0% APR introductory credit cards with balance transfer options. This could lower their payment by consolidating their bills and at 0% interest to boot!

When you’re looking into all the offers of 0% Introductory credit cards that allow you to transfer the balance from other cards, you need to compare offers carefully. Be sure you read the fine print. We often get into the habit of getting excited with the hype and fail to read the details.

When you’re considering a new 0% APR credit card, look into how long the introductory period is. It varies from card to card. It can be six months or twelve months with some newer offers up to eighteen months. How long is it going to take you to pay the balance down to where you are comfortable with it?

Then there’s the issue of the balance transfer. Is there a fee for the balance transfer? Some cards do not charge a fee to transfer and others charge as much as 3%.

The 0% offers usually apply towards any amount you transfer over from other cards; but, does it apply to new purchases? This feature also varies. Sometimes it’s just the ‘balance transfer’ amount and other times it includes ‘new purchases’ as well.

Another thing consumer should be concerned with when applying for a 0% APR introductory offer with a balance transfer feature, is what is the interest rate after the introductory period is over? This really can vary by several percentage points. Is it comparable to the competitors?

Finally, individuals need to be aware that if they should become delinquent prior to when the twelve-month period is over, that 0% APR is gone. The offers can now charge as much as 32% in some instances when your account is not kept up with the terms of the card. This could put quite a dent in the balance owing and the monthly payment as well.

The 0% APR introductory offer can be a great help to your financial situation. Just be sure to read the fine print. Know that you will be able to keep the terms and that the additional features of the card, including rewards offered, is what you are looking for.

How To Secure Low APR Credit Cards

Getting a low APR credit card has a lot to do with your credit history, but how can you better your abilities of securing one?  This article describes how to secure low APR credit cards.

A low APR credit card is the best option for securing credit by far.  The lower your interest rate is, the less you must pay for borrowing money and using your card.  Yet, it is clear to most of us that our credit score is the main factor in what makes this number high or low.  The better your credit has been, the better your ability to secure a low APR credit card.  Is there anything you can do to better your opportunities?  Of course, there is.

Why Low APR Is Important

If you are looking at two credit card offers that have come your way, you want to determine which one offers you the lowest APR, or annual percentage rate.  This number will define how much the credit lender will charge you to use their service.  Even a few fractions of a rate will matter greatly.  If you carry a balance on your credit card, as most people do, you will be charged interest on that amount.  The lower the interest rate is, the less you have to pay. 

What Determines It?

What is it that determine is if you get low interest credit cards?  There are many things that play a role in what you are offered, how much you are offered, as well as in the interest you will be charged.  One of the most fundamental aspects, though, is that of your credit score.  The ability that you have to secure a low APR is based at least in part on this.  The lower your score, the more of a risk you are to the company.  Therefore, to keep it worth the while for them, they charge you more in interest.  If you have a better score, you are less of a risk.  Therefore, you get the lowest APR.

How to Lower APR

It goes without saying that if you want to improve your ability to secure low APR credit cards that you would do so by improving your credit.  So, how do you do that?  It can be a bit worrisome to individuals that have a low credit score.  Here are a few ways to improve your score quickly.

1.  Pay your bills on time.  Just one late payment on your credit report is going to cost you dearly in your score.  This mark on your report will hurt you considerably.

2.  Pay down debt quickly.  If you know you will need to extend your credit over the next few months and want to get a low APR credit card, you need to pay down as much debt that you currently have.  You create a shift from having too much debt to credit ratio to having more credit than debt.  This is a big plus for you.

3.  Do not close accounts.  It pays to have accounts opened with no balance or low balances on them.  This provides for addition debt to create ratio numbers that greatly impact your abilities to secure low APR credit cards.

While we all want low interest credit cards, you are better capable of getting this ability if you work hard at improving that score.  There are many other things to do, including not spending on credit cards and not opening too many accounts at once.  You surely can be in a better place when you do get those numbers up and improve your overall ability to secure low APR credit cards in the future.