Low rate credit cards, a.k.a. APR credit cards, can be great for people that carry a monthly balance forward. Unfortunately, you most likely won’t qualify. The dilemma is most credit card companies will only offer low rate credit cards to those with excellent credit, or at least above average.
Around 9% is the average rate for low rate credit cards, some even go as low as 3.99% for those with an awesome credit rating.
Consider these factors if you’re researching on low interest credit cards.
Everyone knows you must have a great credit to qualify for low interest credit cards. In terms of the credit bureaus, credit scores may fall in the excellent and good credit groups. You’ll most likely qualify in either of these groups.
If your score does not fall into these groups, hence bad credit, don’t fret. You can still improve your credit score.
You may negotiate and possibly receive low rate credit cards if you have a less than appealing credit, given that:
- you’ve been employed with the same company for a certain amount of time
- the credit card company believes your income will stay steady.
Low interest credit cards offer great rates, commonly falling between 9% and 15%. These cards are great for large purchases. Although the balance may be high, you won’t be charged as much interest as a normal credit card would charge.
Just because ‘low rate’ sounds enticing, bare in mind that it can be just an introductory special. It may only be for 3 months and, before you know it, it severely goes up 17%.
The balance transfers can be expensive as well — say, around 3%.
Even a 0% APR is a possibility, with the same condition as the aforementioned. It’d be a great deal if you’re sure you’ll be able to pay off your balance before the certain period is over.
So, before you even apply for low rate credit cards, carefully read all the terms and conditions. Shop around before committing to a card.The Truth About Low Interest Credit Cards Click To Tweet
Beware though that most low rate credit cards come with a cumbersome annual fee or membership fee — as high as $100. Those with great credit are not intended for these fees. They are for high risk cardholders with bad credit.
In the long run, this can cost more than a credit card with a higher APR. Discuss these fees with the credit card company and see if they can be waived.
Has this happened to you recently?
- become unemployed
- foreclosure on your home
- suffered bankruptcy
- suffered another type of financial crisis
If so, your credit file will show black marks that can affect your borrowing ability.
Pretty Penny Loans specialises in bad credit loans that will provide you with cash for anything listed above, and then some. PPL’s specialised bad credit loan does not consider a bad credit history as a limitation.
Consider PPL’s bad credit loans online as the first step to deal again with the bank or top credit providers, which could happen within 6 months. You can even expect lower interest rates.
To process and approve your application, you need to provide your personal details and latest bank statement.