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Is A Low Fixed Rate Credit Card Or 0% Introductory Rate Credit Card Better

Fri, 12 Sep 2008 13:50:08 +0000

Most people when looking for a new credit card spend a lot of time debating if they should get a credit card with a low fixed rate for the life of the credit card or if they should get a credit card with a 0% introductory rate. Both have their strengths and weaknesses and let’s find out why.

If you are somebody that pays their bill off every single month and has never been late or missed a payment it does not really matter which way you go. Your not going to carry a balance anyways so picking the low rate credit card or the one with a 0% introductory rate will not matter. Seeing balances on anything bothers the heck out of you so its not going to happen. You do not like paying interest of any kind and the only one you know you can’t get around is the one that is on your mortgage.

If you do carry a balance than you are stuck in this debate. Should you risk taking a credit card with a 6 or 12 month 0% introductory rate or not? Let’s say that right now you already have a balance on a credit card and the new credit card is guaranteeing a small fee to transfer a balance but keep your rate at 0% for 12 months. In this case it would make sense to do it only if the fee is not more than what you would pay in interest over the year. If you know that you are going to use this card more and that paying down the balance is not an option than take the introductory rate. It will probably save you from big interest payments and make your life a whole lot easier.

The downside to this is that you are passing up on a credit card that will maintain a low interest rate over the life of the credit card. With major banks and credit card companies hurting right now in this economy many are willing to give you a credit card fixed at 5% as long as you do not miss a payment. That is a pretty tempting offer for anybody regardless of your credit history. If you pass it up you might not be able to get approved for another one in the future.

The low fixed rate credit card is perfect for everybody. The interesting thing is that most credit card companies will still offer you at least 6 months at 0% interest on a fixed rate credit card. In this case, you get the best of both worlds. You can take advantage of the introductory rate and at the end of it you will still get the fixed rate for the life of the credit card. This is assuming that you have a great credit history and that you can get approved for the card. If you cannot get approved on the credit card than you need to improve your credit scores. Doing so will help you get an approval next time. When banks see that you do not carry a balance next time they are going to offer the best rate on any credit card they have.

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Is A Low Fixed Rate Credit Card Or 0% Introductory Rate Credit Card Better

Low Rate Fixed Credit Cards

Before You Apply For A Low Fixed Rate Credit Card

Wed, 20 Aug 2008 01:29:57 +0000

One of the unfortunate events of modern times is that people tend to acquire so many things they don’t really need. Numerous gadgets and services occurred targeting a vast market of consumers and this emergence of various inventions somehow blinded people.

Since finances, especially money is one of the major concerns of many people, a wide array of financial management services and financial options emerged. Some of these financial services are good and some unnecessary. One of the most visible among the unending line of financial management services there are is the low fixed rate credit card.

Although many people testify for the financial convenience you get when you apply for a credit card, it doesn’t mean that every convenience applies for you or for everybody in that matter.

When people apply for a low rate fixed credit card, there is always a reason. It can be for managing their finances, needing extra money or in preparation to a big expenditure. But, no matter what the reason is, people apply for a credit card because of the ultimate convenience it brings. By now, you may have had your share of credit card offers in your virtual and physical mail boxes. Since people are quite vulnerable when they apply for a credit card, some credit card issuers lure these people by giving low introductory APR, no annual fee offers among numerous perks. The tendency of this so many alternatives and deals is to sway the person who wants to apply for a low rate credit card.

There are undeniably endless lists of pros and cons when you apply for a credit card, but if you really have decided to apply for a new credit card, these are some of the helpful tips that can guide you on your credit card shopping journey.

There are three easy steps you should follow if you have decided to apply for a credit card. First, surf the net and do some research on low interest rate fixed credit cards. When you do this, it will familiarize yourself with different credit card terms and companies. Second, you can compare numerous credit cards that would best serve your needs and lastly, you may now apply for the credit card of your choice by filling out a credit card application by visiting a bank representative or through online.

In order to find the right credit card fast and easy, first, before you apply for a credit card, make sure you mastered the credit card terms. When you apply for a credit card you must know what your credit card really is about. Being a form of borrowing that involves charges, credit cards usually have underlying credit terms and conditions affect your overall cost. So, it’s best to compare terms and fees before you apply for a credit card and agree to open an account. Some of the important terms to be understood well include the annual percentage rate or the APR.

When you apply for a credit card, you must know how the APR affects your credit account. Being a measure of the cost of credit expressed as a yearly rate, the APR should be disclosed before you apply for a credit card so that you would not be obligated on the account and on your account statements later on. Aside from APR, the periodic rate must be disclosed to the card holder before they completely apply for a credit card so they would have an idea of their outstanding balance and finance charge for each billing period.

Other important terms to know before you apply for a credit card are free period or grace period, annual fees, transaction fees and other charges, other costs and feature, and balance computation method for the finance charge like average daily balance, adjusted balance, previous balance, and two-cycle balances. If you’re not that type of person who is patient enough to research on all these terms, make sure that before you apply for a credit card, the issuer will give an explanation how the balance is computed and it must appear on your monthly billing statements. If you follow these easy tips before applying for a fixed rate credit card you will save a lot of money in interest.

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Before You Apply For A Low Fixed Rate Credit Card

Low Rate Fixed Credit Cards

Get The Most Out Of A Low Fixed Rate Credit Card

Thu, 14 Aug 2008 15:55:22 +0000

If a credit card is used properly, it can be the most powerful financial tool. But not everybody can afford all the expensive rates of most credit card issuers offer. This is where a low fixed rate credit card comes in. It helps people who carry a balance on their account and not to pay the full amount monthly.

Basically, APR is the cost of credit as a yearly interest rate. APR stands for “Annual Percentage Rate” of charge can be used to compare different credit and loan offers. The APR on credit cards is usually calculated monthly based on the current amount in the card. The monthly interest is calculated as if the current card balance would remain the same over a year; the interest on the amount over a year (APR) is worked out and divided by 12 to give the monthly interest. It is a must that all lenders tell the client what their APR is before signing any agreement.

Although the arrangements and terms may vary from lender to another, it is better for people to avail a low APR credit card because the lower the APR, the better the deal for them to spend more money in shopping around.

Why choose a Low Fixed Rate Credit Card?
A low fixed rate credit card is a good choice for those people who are in a tight financial spot. Being the most important attribute of a credit card, the APR determines the a large balance over a longer period of time.

In a low rate credit card, the amount of interest one must pay on his or her credit card balance depends on its APR because the lower the interest rate is, the better it is because it means they have to pay less interest.

If you are planning to have a low rate credit card, make sure you get a credit card with a fixed interest rate. These low APR credit cards are chosen using a factoring scheme that organized these cards by computing a number of their attributes to place the best deals at the top.

Some of the questions one have to ask when looking for a low rate fixed credit card includes the charges. You will want to know if the interest rate stays fixed for the life of the time you own the card or if it will become variable if you miss a payment or are late on one. Some fixed rate credit cards come with additional charges like payment protection insurance or an annual charge. Do your best to stay away from those to begin with because if you are responsible with your money than you will not have to worry about those.

If you are now looking for a new low rate fixed credit card you may begin looking for one that could help you save hundreds in interest with a low interest credit card and low cost processing. Many low interest rate credit cards offer 0% APR for the first 6 months on purchases, cash advances, and balance transfers. Through these, low APR credit card can warn rebates towards any item purchased. They also offer $0 liability on unauthorized purchases, and no annual fees. Some low fixed interest rate credit cards that have very good intro rate for purchases is recommended for those who would want to get one. They also offer good deals if one carry high balances on other cards and need to transfer the balance.

Indeed, having a credit card can be useful and convenient, and can even help build a strong credit history that will help you with future activities like home-buying, paying for higher education, and even finding a job. But, before you apply for a card, consider the advantages and disadvantages especially with the current financial situation you are in.

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Get The Most Out Of A Low Fixed Rate Credit Card