With the economy still rocky, more people are relying on credit to get by. Before you start charging away to make ends meet, it's important to find a low-rate credit card.
When choosing a credit card, there are a few features to consider before settling on the one that is right for you. Fees, interest rates and benefits vary, so what may seem like a good deal at first may actually not be the best option for you.
Many credit cards charge annual fees that can range from as low as $5 up to $150. If you choose the wrong card, an annual fee could have an immediate effect on your available credit. But more important than a membership fee is the APR, or annual percentage rate. Your goal is to find a card with a low rate so that you aren't paying more interest on your credit card than necessary.
Of course, in the ideal situation, you would pay off your credit card debt every month. Unfortunately that's not always possible, and if that's your case, a low-rate credit card is your best option.
Most low-rate credit cards offer an introductory rate. This rate allows you to make purchases for a specific amount of time at a low interest rate, if not a zero percent interest rate. But this deal doesn't last forever, so it's important to try to pay off all your debt before your APR increases. And be sure you know what the APR will be after the introductory rate ends.
Many people who do have credit card debt will look for a low-rate credit card in order to transfer the balance from an existing card. A few months at a lower rate could help them get out of debt faster. Regardless of whether you are looking to obtain your first credit card, need to transfer existing debt to a low-rate credit card, or are in need of a credit card for important purchases or paying bills, it's imperative to find a card that doesn't charge you an arm and a leg in interest.
Peruse credit card websites, compare and contrast credit card deals, and don't rush into any agreement until you are satisfied with your decision. A low-rate credit card can come with a lot of benefits and can help to keep your debt at a minimum.
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