How to get the best credit card rates

If you are in the market for obtaining credit there are a few things you should know to help you get the best credit card rates possible.  The 1st question you should ask yourself before obtaining credit is why do you want it.  Are you looking for a short term loan or a longer term loan.  Knowing the answer to this question will give you an idea of what you should be looking for as far as credit cards go.

0% Interest Rates

Many cards will offer an introductory interest rate of 0% for a limited time to gain your business.  These will typically expire and then their default rate will apply.  That is the interest rate you need to pay attention to.  The initial 0% offer can be very attractive if you have the intention of paying off the loan before the introductory rate expires.

High Credit Score

Credit scores can go as high as 850.  Although it is not necessary to have a perfect credit score to obtain the best rates having above a 720 credit score is generally accepted as a score that will get you the best rates.

How do you get a high credit score ?

According to the Consumer Financial Proection Bureau credit scores are generally based on the following criteria:

Your bill-paying history (35 percent)
How many accounts you have and what kind (10 percent)
How much of your credit lines you are using (30 percent)
How long you have had your accounts open (15 percent)
Your recent credit activity (10 percent)

source: CFPB 

Interest rates and terms

There are many different credit cards available and you want to make sure you are not only getting the best interest rates but also the best terms.   Some cards will have longer “grace” periods in which you have to pay off the balance before incurring fees.

Incentives

If you have great credit then credit card companies are actually trying to get your business.  There are different incentives that the credit card companies will offer:  Airline miles, cash back, discounts at retail stores and even gas for your vehicle.

Bottom line: Figure out why you need the credit, how much you need, for how long you need it and chose the best scenario for you.  A good place to start comparing credit cards is creditcards.com