"Online Credit Card Approval - Is It Getting Too Easy To Spend?"
Low Interest Credit Cards Available For Those With High Ratings
There is not a credit card customer in the world that is not looking for low interest credit cards, and with an excellent credit rating, they can be easy to find. Those with questionable credit, or no credit history, may be hard-pressed to find low interest credit cards for which they are qualified.
When looking for low interest credit cards you have to read all the stipulations that come with the card as some will only offer a low interest rate for a set introductory period. For example, the rate may be offered at five percent for the first six months, at which time it will go up to as high as 15 or even 19 percent, regardless of your payment history. Additionally some rates advertised by low interest credit cards are valid only for the amount of balance transferred only. The amount of purchases may have a different, usually higher interest rate.
Additionally, some of the low interest credit cards offer a variable rate interest rate, based on the prime rate. It may stipulate a rate of five to 20 percent above the prime rate, which is the interest charged to lenders, at eight and a quarter percent in January 2007. One of the big disadvantages of variable rate cards is that the payment can increase whenever the prime rate changes.
Maintain Payment History To Keep Low Interest Rates
Holding low interest credit cards can be a financial boon as long as you make your payments on time, every month. Typically, missing payments will not only trigger additional charges to your account, but will also increase you rates, sometime drastically. For example, one of the more popular low interest credit cards offers a seven and a quarter percent interest rate on purchases and transfers but missing two payments within a six-month period triggers a rate increase to 15.25 percent and it will be in effect until six consecutive payments are made on time.
Many of the low interest credit cards slap on a charge for a late payment and for going over your credit limit. If you have one of the low interest credit cards and keep your balance close to your limit, you run the risk of losing that rate if your payment gets there a day or two late. You will not only be charged the late fee, but if it raises the balance above your limit, you will be charged the additional fee. Miss two payments and you will be charged this theoretical 6 in fees and watch your interest more than double.
"However, for the last year or so I have been using a credit card with travel rewards and I have to tell you that it is great."
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