If you use credit cards, but carry a revolving balance from month to month you should look for a low APR credit card. Generally speaking these cards will not be rich with rewards, but that is more than a fair trade off for a lower interest rate. In most cases you will need good or excellent credit to qualify for these credit cards, as people with lower credit scores have a higher chance of defaulting on their financial obligations.
When selecting a low interest credit card you will often find a wide range of interest rates listed, this is because each interest rate is for a specific credit score range. The interest rate you are offered will depend on your credit worthiness. You are only going to receive the lowest rate shown if you have excellent credit. You should also be aware of the cards terms and conditions, these are found in what is known as a Schumer Box, and will let you know what the cards standard interest rates are as well as any penalty interest rates are in the case of late payments.
You should also beware of your credit score when you apply for any credit card. You should always inquire or research what credit score ranges are required for the credit card that you wish to apply for is. Avoid applying for credit cards that you do not qualify for, you will be denied credit and the hard inquiry will lower your credit score even further. If you struggle with debt avoid credit cards that offer a rewards program, as these credit cards can be a temptation to spend more money. The truth of rewards cards is that they carry a higher interest rate, this helps fund the rewards program, and the credit card companies are usually the ones that come out ahead, if you carry a balance from month to month.
If you want to keep your credit score intact and healthy you should only apply for one or two credit cards. Multiple credit cards may not be the best thing for your credit score or your debt load, especially if you carry a balance from month to month. Your best bet is to pick one card, whatever card you find that offers you the best possible interest rate and stick with that one. Once your credit score improves you can always ask for a lower interest rate, or apply for a better card.
If you already have a credit card and want to switch to a lower interest rate credit card, you should pay off the balance on your current credit card first. The reason being is that when you use a large percentage of your available credit, your credit score will lower. This is known as credit utilization, and you want your credit utilization to be under 30 percent before you even consider applying for a new credit card. If you have a high debt load chances are you will not be approved for any low interest credit card, so if you want one of these credit cards you will need to work on lowering your debt load as well as raising your credit score as high as possible.
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