Get the lowest interest rate credit cards now
Although the interest rate is a very high priority in choosing a credit card there are other benefits and/or caveats that you may want to weigh to make sure you have the best card for your needs.
Teaser Rates on credit cards
Credit card companies are businesses trying to make money and one way to get more clients is to offer low teaser rates which expire and then go to their normal interest rate. If you can pay off your balance before the teaser rate expires you will incur very small, if any at all, interest on what your borrowed.
Yearly fees for credit cards
Many credit cards will charge a minimum yearly fee. A lot of times a yearly fee is charged because the borrower has poor credit. However , there are high limit, great credit score cards that also have minimum yearly fees. This is usually because they have great perks that come along with owning that card. Check the terms of your card before applying to see if a yearly fee still gives you more benefits than the fee.
Credit card late fees
It used to be that credit cards would charge tremendous late fees but thanks to the Credit Card Act of 2009 credit cards can only charge a late fee of $25 under most circumstances.
Credit card default rates
When you are late on your payments your credit card company has the ability to raise your interest rate to their “default rate” which can be as high as 30+%. Not every card has a default rate and thanks to the Credit Card Act of 2009 the credit cards companies have to wait at 60 days from your last payment to increase your rates. They also have to review your account every 6 months to bring your interest rate down.
Credit card benefits
There are more types of benifits than there are caveats to be concerned with. Credit card companies are constantly coming up with different ways to get and keep you as a customer. Here are some of the top benefits to compare between credit cards.
Credit card Airline Miles
Some of the things to watch out for with airline miles are when the miles expire, are there any blackout dates, how many points per dollar spent go towards miles and any limit on total miles you can accumulate.
Credit card Cash Back
What is better than cold hard cash? Depending on the credit card and what you purchase you could get up to 5% cash back.
Gift Cards for using credit cards
A lot of credit cards will offer gift cards to some of the most famous retailers around.
As you can see there are other items to consider besides interest rate when looking at getting a new credit card. After you know why you need credit check to make sure you are going to get as many benefits you can.