How to Get a Low Interest Rate Credit Card?
Written by frenn guy

Low interest credit cards are there for one reason only: to draw in more consumers. In an age where there are more credit sharks than ever before, people can now fatefully choose between sticking with one company or another.

A FICO score would be able to tell you whether your current credit condition is poor or excellent. Your FICO score would also tell you what types of credit cards would easily become available to you than others. This doesn't mean that you would be barred from other cards though. It just means that you would have to pay higher fees than those whose FICO score are robust.

Interest Rates

There are two types of annual interest rates that you should take note of. The first type of annual interest rate is called fixed rate (just like in mortgages). This means when a credit card company offers ten percent, it will stay ten percent for a whole year.

The second type of annual interest rate is called the variable rate (like mortgages, again!). As you may already know from the effects of the market on interest rates of other forms of credit, the variable interest rate in credit cards is also affected in the same manner. Therefore, there's a chance that midway into the year, your interest rate would change.

Choosing Between Fixed and Variable Interest Rates

Are variable rate credit cards an intrinsic evil? Not really. For one, there are instances that the prime rate in the market is lower than the fixed low rates provided by private creditors. If this is the case, you can opt for the variable rate cards.

Inversely, if the prime rate is following an increased projection instead of a decreasing one, choose lower rates from private creditors.

Excellent, So-So or "Get A Financial Advisor Now!"

There are only four main categories for FICO scores. If you were in the "excellent" category that means all loans would be made available to you if you so desire them.

The next rung is called "good" and they are for those with FICO score of less than 770 but no less than 700. The average FICO score would be less than 700 but no less than 620. The worst-case scenario would be the last rung, "bad". If you're in the red zone already, consider remedying the situation immediately.

Remember, credit would not be extended to you if you have a very low FICO score. Of course, sub prime deals can be made available.

However, it is not recommended that you get sub prime loans from private individuals. The pay-off is simply too large, and if you're already suffering from large debt, sub prime deals would only magnify the problem.

Getting the Card

If this is the first time to get a credit card, make sure you're aware of the "fine print". Some credit cards may waive the first year's annual fee. Make sure that you know what they're charging.

If you already have credit card debts, you may opt to transfer your balance to low interest cards and try to pay off as much debt as possible.

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