I have several credit cards. I don't use them very often, but once upon a time, I did. I used my credit cards and in turn, abused my credit score. My relationship with my credit cards and credit was not a good relationship.
That changed when I reached the lowest point of my adult financial life. I had lost my job, I couldn't pay my bills and I had mouths to feed at home. Luckily, here in Erie, Pa there exists a company that does a lot of the day-to-day management for one of the largest credit card companies in the world. Just as luckily for me is that they had an immediate opening that I could step right into.
Once I finished my two weeks of training and started handling customer concerns firsthand, I saw the benefits of low interest credit cards and how the customers that held them achieved them in the first place. What I learned is that the people that have very low rates get them because they deserve them. They've managed their credit the way someone else will manage their appearance or social life. They've started out with whatever credit they could get as young adults, and then they've taken whatever steps were necessary to ensure they didn't mess it up.
Low interest rate credit cards abound in the market and there is no doubt that everyone is interested on what these credit cards are about. A zero interest or a low interest offer is indeed enticing! And if you receive a credit card offer in your mail with a zero interest rate, wouldn’t you be urged to sign up and send your application? However, before you do make that move, know what you’re really getting into. Are low interest or zero interest credit cards for real? Or are they just pure marketing hype?
As you look for low interest credit cards, you may have learned about the Credit Card Accountability, Responsibility and Disclosure Act of 2009. It sounds like a great idea, and it will aid in many ways, but it does not offer consumers lower rates and it most definitely could spur lenders to charge you in other ways to make some for some of the restrictions that this act puts in place. If you are shopping for a new line of credit, be a smart shopper by knowing how to avoid some of the latest pitfalls in store for borrowers.
1. Read through the terms on current lines of credit you have. What you may not realize is that some lenders have placed new fees and restrictions on current credit cards. This could be limiting you already. If you are unhappy with the changes, you have little grounds for changing them, but you do have the ability to pay off your debt and to look for better, low interest rate cards.
2. Do shop around. This is the best route to take to get the lowest possible interest rate available. Not all lenders are the same and many do offer significantly lower charges for those who are well qualified. You can get free quotes from lenders without hurting your credit rating in the process. This is especially important for those with a good or better rating currently.
3. Do keep your credit score high and work to continuously improve it. Those borrowers who are less risk are likely to pay less for any of the charges they make, even if there are instances where the rates will increase. To get the best option for yourself, keep payments on time, avoid over the limit fees and be sure to pay off your balance as much as possible each month.
Continue reading 5 Ways to Ensure Low Interest Cards Are in Your Wallet
Related resource: Debt Consolidation Companies
