How To Get a Low Interest Credit Card

Consumers often have the first credit card that they ever applied for, never really analizing how the interest rate affects their payments, but many other options exist and can help consumers decrease their payments and achieve financial stability.

With interest rates on some credit cards rising to over 23%, even low balance credit card debt can be crippling. One of the first research elements a prospective borrower should look at is the interest rate on transferred debt. This interest rate is often lower than the usual interest rate for the credit card, and can be an especially good deal for borrowers who have debt already. Another element to consider is the interest rate on new purchases ? this rate will be the main concern in the years to come, as this new credit card will probably become the most heavily used. Borrowers often worry about annual fees, but these are often temporary. Getting a credit card with low interest rates will save a borrower significant sums, usually much more than the annual fee. Plus, once good credit is established, the annual fee may later be waived.

Another interest rate will usually apply, as well ? the rate for cash advances. Cash advances are usually limited to a couple hundred dollars, but credit card companies often insist that when paying back the balance, the credit portion must be paid back first, then the portion that the cash advance applies to. So if you are going to keep a balance on your credit card, be aware that cash advance interest rates are higher than the regular interest rates. Cash advances can be incredibly helpful in emergencies, though, when a credit card cannot be used.

Visa and MasterCard are by far the most commonly accepted credit cards, so less commonly used cards such as American Express and Discover often offer special rates for new customers. These rates are worth attention, even if you think that you may not be able to use the card as easily as your previous credit cards, because transferring the balance to these new cards to obtain the lower interest rate may significantly lower your payments. While your AmEx or Discover Card may not be accepted as often, they can be a good tool to achieving your financial goals.

Even less commonly used are credit cards that are store specific, such as gas cards or department store cards, but these cards can offer incredible deals on interest rates. They rely on the fact that consumers will often switch their spending patterns to the new gas station or store, and this increased revenue makes up for the lower interest rates. A slight change in your habits, such as consistently using the new credit card at the new gas station, can lower payments and improve credit scores.

Researching new credit cards can seem daunting, but by comparing the four main factors, which are the regular interest rate, the rate on transferred balance, the rate on cash advances, and the annual fee, you can reduce your credit card payments significantly.

The author runs the finance website http://www.pawninfo.com about short-term loans and payday loans, and any or all of this article may be reproduced in any form as long as there is a link to the website. Pawn Shops and Short Term Loans

BBC News
Ex-Credit Suisse brokers indicted on fraud charges
Financial Times, UK - Sep 5, 2008
By Joanna Chung in New York Two former Credit Suisse brokers have been indicted on fraud and conspiracy charges related to the sale of auction rate ...
Former Credit Suisse broker arrested in US Swissinfo
Former Credit Suisse broker charged with subprime-linked fraud in ... International Herald Tribune
UPDATE 1-FBI arrests ex-Credit Suisse broker Reuters
Independent - Forbesall 527 news articles

Boston Globe
US travelers face credit snafu
Boston Globe, United States - 2 hours ago
By Eric Lucas All I wanted to do was buy gas, so I put my credit card in the automatic card-reader and got ready to fill the tank. ...
Bridging the gap year: stay out of the red in the wild blue yonder Independent
all 2 news articles

Clock ticks down on credit bureau class-action deal
Indianapolis Star, United States - 3 hours ago
In a class-action settlement, credit bureau TransUnion has agreed to provide free credit- monitoring services to millions of consumers to settle claims it ...

MORE COLLEGE CREDIT
Chicago Sun-Times, United States - 13 hours ago
Despite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ...

CEP News
S&P raises Nalco Co.'s credit rating
CNNMoney.com - Sep 5, 2008
NEW YORK (Associated Press) - Standard & Poor's on Friday upgraded its corporate credit rating on Nalco Co., citing bright prospects for the company to ...
S&P puts Fifth Third on credit watch Dayton Daily News
Credit rating soars in District 300 Northwest Herald
Starbucks downgraded to 'BBB' on weakening credit metrics - S&P Hemscott
CNNMoney.com - CNNMoney.comall 107 news articles

Credit Report Need Fixing? Take Action Yourself
Hartford Courant, United States - 12 hours ago
Mike Ferrara wants to buy a house in a few months and is worried that mistakes on his credit report will keep him from obtaining the loan he will need. ...

BBC News
18 months of credit crunch ahead, says HBOS chief
Sunday Herald, UK - 11 hours ago
By Bridget Morris THE GLOBAL credit crunch is likely to last until 2010, the head of Britain's largest mortgage provider has claimed. ...
HBOS chief says credit crunch to last through 2010 International Herald Tribune
Credit crunch will last another 18 months Telegraph.co.uk
Credit crunch to last another 18 months Times Online
Reuters - BBC Newsall 42 news articles

College students should study up on ID theft
Chicago Tribune, United States - 3 hours ago
Here are tips from security experts: Avoid credit card solicitations. This is a good idea anyway to stay out of debt. But there's a scarier reason to avoid ...
Limit damage after ID theft Sun-Sentinel.com
Identity Theft Solution Corsavoo.com
What I learned when thieves stole my identity Sun-Sentinel.com
all 5 news articles

Federal housing tax credit has mixed benefits
Indianapolis Star, United States - Sep 5, 2008
By Jeff Swiatek At Carpenter Realtors in the Indianapolis area, agents wear lapel buttons proclaiming, "Ask me about the $7500 tax credit. ...
Plenty to Coax Home Buyers Back To the Market Washington Post
all 2 news articles

State Bank sets Rs 250bn agri credit target for FY09
Daily Times, Pakistan - 12 hours ago
KARACHI: The State Bank of Pakistan has set an indicative credit disbursement target of Rs 250 billion for the agriculture sector for 2008-09 which can be ...
State Bank sets Rs 250 bln agri credit target for FY09 Regional Times
State Bank sets Rs 250 Billion agro credit target for FY09 Online - International News Network
all 12 news articles

Wind Chimes and more...

Windchimes for great gifts!

How Do I Establish A Good Line of Credit?