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Low Interest Credit Cards |
The low interest credit card is worth its weight in gold. The low interest credit card is almost as popular as gas credit cards. Low interest credit cards are usually reserved for people with the best credit. If you are willing to search for them, anyone can find a low interest credit card.
There are all kinds of numbers and rates in bold on the credit card envelope you get in the mail. These cryptic numbers control the interest rate you pay on the money you borrow with your credit card. Remember, when you make a purchase with a credit card you are borrowing money from a lending institution. |
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| APR: This stands for annual percentage rate of interest. This is the same thing as
the interest rate charged on your credit card. |
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| Prime Rate: The prime rate is used by banks to set the interest rate of the loans they
give. Most of the lending institutions in America use the Prime Rate to adjust the
interest rates on their credit cards. If you see a Prime Rate advertised at Prime + 6%
you can figure the interest rate yourself. Take the prime rate (for an example
let’s say the prime rate is 6%) and add the 6% to it.
In our example: 6% + 6% = 12% interest on your credit card. |
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| Variable Rate: The interest rate of your card is still tied to an index such as the
Prime rate. As the name implies, it will adjust depending on this rate goes up
or down. |
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These are some of the items you will see on your low interest credit card application. You should always read the fine print on your credit card applications. Many companies are practicing deceitful practices regarding raising their credit card interest rates.
An example might be a company raising your interest rate the first time you are late on a monthly payment. This interest rate hike can be very significant. This is very serious and you need to be aware of these kinds of practices.
Check out the credit card companies with the BBB to see if they have any complaints.
Low interest credit cards are essential in a downward economy. Find yours today. |
