Is A Low Apr Or Interest Rate Better Than Rewards On A Credit Card?

Are you wondering if a low APR or interest rate

, is going to be better for you then getting a credit card that has a lot of rewards available? Credit cards have a lot of differences between one another. Credit card companies also use rewards and low interest rates, in order to entice people into getting a credit card through them. However, all of these rewards and fluctuations in interest rates can make getting a credit card confusing and difficult. Obviously, when you first get your credit card, you must make sure that you are getting the right type of card and from the right company. There are lots of Credit Card Comparison companies out there like Credit Card Insider that can point you in the right direction. There are American Express, Capital One, Bank of America, and much more. Each place has its own advertising techniques, they all use different rewards and interest rates in order to get people to buy their credit cards. Below, you will find some of the differences between interest rates and rewards, to determine whether a low interest rate is better than rewards.

Typically, rewards are given when you purchase certain types of things on your credit card

When companies offer you a reward system for your credit card, they usually do not apply rewards to all types of purchases. Instead, these rewards are only present when you buy items like gas, groceries, or food on your credit card. This means that not all of your purchases are going to be qualifying purchases. Depending on the type of reward, whether it is cash or money that can be applied toward your balance, rewards can be a good or bad thing. Sometimes, companies use rewards in order to entice people into getting credit cards, when the interest rate is very high. This is something to be aware of. You do not want to get a credit card with a high interest rate, even if you think that the rewards are kind of interesting. The rewards would have to be substantial, in order for you to purchase the card. For instance, if they're offering you 15% cash back on all gas or grocery expenses, this is a pretty good reward. This could completely eliminate your interest rate, in the event that you are purchasing gas or groceries. This would actually be a really good opportunity for you to use that card solely for gas or groceries, then get a second card in order to handle other expenses. If you pay off the card at the end of every month, you will accrue no interest charges. This means that you will get the 15% cash back, without even having to pay any interest either. This is like free money in your pocket, it's a good example of rewards that work out in your favor.

Interest rates above 15% are very high

Typically, anything below 15% for a credit card is a decent interest rate. If you are paying over 15%, this is a fairly high interest rate. Depending on the reward, it would have to be a really good reward in order to justify having an interest rate over 15%.

by: Merrie Gallo

POST COMMENT

How Can You Get A Credit Card When You Are Just Starting Out The Differences Between Different Credit Cards Offered At Credit Card Companies Poor Credit Loans Wonder Option For Those Who Have Poor Performances Payday Loans For Bad Credit: Be Safe Financially By Getting Cash Hurricane Disturbs Romneys Convention Like Inconvenient no Credit Check Loans Getting A Loan Even If You Have A Bad Credit Loan For Bad Credit- Cash Assistance For Poor Credit Profiles Bad Credit Payday Loans: Good Option For Sudden Intentions Text Loans For Bad Credit: Acquire Cash Via The Help Of Cell Phone Loans For Bad Credit Trustable Aid For Imperfect Creditors 1000 Pound Bad Credit Loans: Affordable Bad Credit Loans For Every One Loans In Minutes- Obtain Swift Credit Within Jiffy Fast Cash Loans For Bad Credit- Easy Loan For Bad Credit People