How to Get Low Interest Credit Cards

There are many different ways to get low interest credit cards. It is important to understand the ins and outs of every method so that you are not trapped by fees or exploding interest. The following article will explain how to get low interest credit cards without getting trapped.

Difficulty: Moderate

Instructions

1. Most zero percent interest credit cards are trouble. They tend to offer the zero percent interest for a term of twelve or eighteen months and then they explode to twenty-nine percent. You get stuck with a large amount of debt on that card and a super inflated interest rate. These can be used to your benefit though. Low interest credit cards like these can usually be transferred again before the term is up. Make sure that you ask about penalties for early payoff or transfer before you take the card if you are going to try this method.

2. Get good credit. This seems like an obvious way to get low interest credit cards, but it is not always considered. The better your credit is the better off you will be. If you have collections on your credit, it is usually best to pay those off even if that means putting it on a credit card because the collection hurts your credit rating so much. Low interest credit cards can usually only be obtained by having good credit.

3. If you have had a card for a long time, simply ask the company to lower it. The very well may. If they don’t, you can always get quotes at other companies and then go back to them with the quotes to see if you can barter your way into low interest credit cards. In general, they are going to want to hold onto valued customers so this can be a great way to go about it. It is best, however that you have good credit and no late payments in addition to a history with that card company.

4. Low interest credit cards can also be obtained by getting a cosigner, although his method can hurt relationships if you are not responsible with your payments. If you have a cosigner, that person is claiming responsibility for unpaid bills and their credit will get damaged if it is unpaid. In addition a cosigner could be sued or sent to collections for your unpaid debts so if you go with this method to get low interest credit cards, make sure you are able to pay the bills.

Resources

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[PABechko]

on 12/31/2008 Great advice, follow it! I contacted my credit card company and they did indeed lower the rate, even though it was already pretty low. Still 1 1/2 percent drop is worth the effort.