Amidst the massive amount of credit card offers to which a single person is introduced, it takes some research to find the best credit cards suitable for that person. There are many people who have applied to and use credit cards while being completely unaware of the actual interest rate that they pay. That is why it is not only important to know the given interest rate of the credit card, but also to fully understand the terms of the agreement you are making with the lender since it may be subject to certain conditions.
While an offer like "0% Intro APR for 12 months and No Annual Fee" may seem quite appealing, it is important that the applicant read the fine print. Introductory rates are sometimes either conditional within a set time frame, are conditional upon the borrower paying the set amount every month without missing a month, or the interest be charged retro-actively. Some of these special rates serve to obscure to the consumer what interest rate they will actually end up paying. A common mistake for people is in forgetting the conditions of their agreement, or neglecting to read them properly in the first place which results in the consumer paying more interest than necessary. Also, while a certain credit card company may offer an introductory rate of 0%, their rate thereafter may be higher than what other companies can offer to consumers on a regular basis.
The best credit cards, are those that pay the borrower back in way of points, or cash back on select purchases, and have a low interest rate even beyond their introductory rate. The user of the credit card should choose whichever option is best suited to their lifestyle. For instance, some offer points back that can be used to redeem merchandise from a catalog, others accumulate points that can go towards travel, and yet others give you cash back. It is smart to use a credit card to buy necessities that you would have to buy anyway, and pay the credit card in full by the due date so as to earn full points or cash back, and yet incur no interest. The best credit cards are those that can offer benefits to the consumer that they will find useful, and have a low interest rate all of the time.
Some credit cards in the US hold an interest rate of any where between 7 to 36 percent. These rates often depend upon the applicants credit history. While it may not be feasible for an individual to do an in depth research study on any, or all major credit card offers, it is likely more important that they know and understand the details specific to the credit card that they have chosen.
About the Author:
The author of this article has been helping people repair their credit through the use of credit cards for the last 7 years. His goal is to teach young people about the importance of building credit early. More info at
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405
Date Published :
Apr 7 2009