Credit Card Rates And Offers

Credit Card Rates and Offers

Credit Card Rates and Offers

Credit card rates will vary with the company offering the credit card as well as with the credit rating of the cardholder. While someone with an excellent credit rating may pay a very low rate on a particular credit card, a person with only good credit pay a higher rate. The rate is determined by a set table, which reflects the risk credit card company feels they are taking.

Offers by credit card companies may be permanent features such as frequent flyer miles or cash back or they may be temporary low or no interest rates on balance transfers or new purchases. However, offers, which have a time limit on them, may leave the cardholder paying a significantly higher rate of interest after the introductory period expires.

A cardholder must first assess their spending habits because sometimes they may save money with a credit card with a higher rate. This might seem a contradiction, but take the person who never carries a balance, who always pays their credit card in full every month. They have no real use for a lower rate but may choose one in case of emergency. However, if they also spend over $10,000 a year on their card, it could be that they may benefit more from cash back card or a card with special offers.

A person who carries a balance may want to consider a low interest rate credit card. The low interest cards often have an annual fee but it can be a real savings in terms of the interest rates.

Persons with larger balances they are anxious to pay off might be looking for a balance transfer offer. The rates can be very low on these offers or even 0% but they will be a temporary rate and eventually the card will change to the normal interest rate for that individuals credit rating. In addition, most companies will charge a balance transfer fee, which could outweigh the benefits of transferring smaller balances.

Credit card rates can also go up if the individual is late on payments. There is usually a late fee but in addition, it can result in a higher credit card interest rate. This also may reflect on their credit rating, which means new credit card rates may also be higher. To maintain the lowest interest rates possible on time payments are very important.

Introductory offers are those, which will be limited in time to 6, 9 or 12 months. Some cards may offer a year with no fee, or a few months to a year with an extremely low interest rate. However, the credit card holder should read the terms of service carefully to ensure that the rates after the introductory period are acceptable because they can end up paying more in interest than with a card without an introductory rate offer.

While credit cards are a part of almost everyones life they must be used carefully and chosen just as carefully with the needs of the cardholder in mind.

Resource Box:

For further information, please visit Credit Card Finder Website.

by: Khalid Sajjad

POST COMMENT

Rebuild Credit - Best Procedure To Restore Your Credit Car Credit No Credit Checks - Ride Your Dream Car! Instant Loans No Credit Checks - Get Quick Money Inspite Of Your Bad Credit No Credit Search Loans-easily Accessible For Any Reason Instant Loans For Bad Credit - Chances Offered To Bad Credit Holders Bad Credit Loans Avail Useful Painless Finance For Use Setting Up A Plan To Pay Off Your Credit Card Debt Unsecured Loans For Bad Credit - Financial Assistance Available To All Do You Need Quick Bad Credit Personal Loans? Emergency Loans For Bad Credit Solution For Problems Of Poor Creditors Installment Loans For Bad Credit Now Pay Back Loans In Installments Information Of Credit Card Debt Options to Call Pakistan without a Credit Card on File