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Understanding The Lowest Rate Credit Cards

March 17, 2008 |

Credit cards have often been used to save us from debt or to get us through a particularly difficult time in life, such as not having a job for a couple of months. Many of us see these cards as a crutch and hate the cycle we get ourselves in, but there are a few ways you can get yourself out of the debt cycle you are in, if you know how to play the game. The game is often called credit card roulette because you are trying to get a card with the lowest rate every six months or a year. However there is a better way to play this credit card game than continually switching your credit cards. The key is to find a credit card with the lowest rate that will allow for the best terms.

Here is how that would work. You go onto a credit card website and find the section where all credit cards are compared. The comparison should tell you what the introductory rate is, how long that lasts, the rewards you can have, the regular APR, any fees, and if there are balance transfer specials. It is important when you compare these cards that you look at all of the aspects. For example Barclay card has a card offering 5% interest rates, but is this, what you will actually be given. You see most of the time the advertised rate on cards is just what is available and not necessarily what you will obtain. Barclay along with many of the credit card companies do have these lowest rate credit cards, but they reserve the right to decide your risk and then determine if you should have the lowest rate they offer of if you should have a rate that is better for your risk.

To obtain the lowest rate credit cards on the market you need to have low risk. This means you have excellent credit somewhere near 800. It also means you have never defaulted on a loan, had a bankruptcy or ever allowed for late payments. In most cases you also have very little revolving credit or debts, but you do have a long history.

The lowest rate credit cards for most of the consumers are going to be near the 13% mark. This can be obtained for those who have debt, but have excellent to good standing. You will find in getting the lowest rate credit cards it is all about your personal life rather than what is offered by the companies. The lowest rate for you may be 15%, but for someone else they may be able to get the Capital One card for 10.99%. Sometimes when finding the lowest rate credit card for you it is best to start off with the lowest offer of interest. In other words if the card offers 5% to their good customers chances are you would still obtain a lower rate than a card that starts their best customer at 10%.

Oge Nwaozuzu writes about credit cards at Instant Approval Credit Cards

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