Getting a Low Interest Credit Card with a Positive Credit Report

Credit Cards are a common item in our everyday life. Almost everyone above 21 has a credit card nowadays, even people who has bad credit. Credit Cards are directly linked to your credit report. When you abuse your credit card, your also negatively impact your credit standings. This can have substantial impact on your future applications for other credit facilities.

Banks and Credit Companies reward credible and trustworthy credit card customers. Customers who pay on time are important to banks as we provide stability to their cash flow and ability to loan greater amount of money. Low Interest credit cards are often only available to customers who have a good track record i.e. a positive credit report.

Don't Let Your Credit Card Destroy Your Credit

Banks and lenders will use your credit report to screen all their credit card applicants. Most banks and lenders have a portfolio of credit cards that they can offer you. Naturally they will offer their best products to their best customers, and these customers have positive credit reports. Your credit report is hence an critical factor for your credit and it can determine the whether the banks or lenders will offer you that low interest credit card. Paying your bills on time is now of the key factors that determines your ratings.

The majority of people are responsible borrowers and would not want to damage their credit report. Paying your bills on time and maintaining positive reports will demonstrate to the banks and lenders that you are a credible person. If you have too many credit cards, this can also damage your credit reports, even if you pay your bills on time.

Having More Than One Credit Card Can Have Negative Impact

When you rely on too many credit cards, lenders may see you as a likely candidate for overspending. Banks and lenders will fear that you will hit the spending limit on all your cards and be unable to pay them. Although this is not from an unlikely scenario, you will be tempted to spend beyond your means with the availability of fast credit. Try to maintain only a few essential credit cards.

Something else you will also need to keep in mind is the fact that it can be really easy to miss a payment on your credit cards. Although this doesn’t sound bad, it can have a very negative look on your credit report. If you start missing payments or paying them late, the lender will eventually enter it in your credit report. This can have a negative impact, lowering your beacon score and eventually bringing down your overall credit rating.

If you play it safe and only get one or two credit cards and keep a track of how you use them, you won’t need to worry. Your credit report should always be a primary concern, and you should always do your best to ensure that it stays free of negative ratings. If you keep up things up to date - you’ll enjoy the benefit of a positive credit report. And perhaps that low interest credit card

Jared L

How To Choose A Credit Card? Is a Low Interest Credit Card The Best Choice?

You have probably search the internet for credit card options and would have know by now the enormous amount of options that you have. There are credit cards which offers you the lowest interest rates, the best repayment terms and even cash rebates. And that is just the tip of the iceberg. How does one choose the best credit card among the thousands of credit card options that is suitable for him/herself? The card that you choose should reflect and suit your lifestyle and spending amounts. Is a credit card with low interest rates or APR the one factor when you choose a credit card?But I am jumping way ahead of myself, the first thing you will need to decide when selecting a credit card is why do you even need one in the first place? Isn't cash king? Some people apply for a credit card to manage monthly cash flow, while others are atracted by the incentives and rebates that are given to the customers who uses the credit cards. With a credit card, you are able to make purchases and buy goods without touching your cash, until the end of the month. In this way, not only can you let your cash gain interest in the bank account, you can also increase the flexibilty and freedom in your purchases, as long as you pay your credit card bills at the end of the month, before any interests get accured.

Low Interest Credit Card for Quick Cash

There are others who will choose to get a credit card for instant cash purposes. In such cases, credit cards with low interest rates will be attractive. Such needs are for people who want to use their credit card at the ATM and get instant cash for travel expecially before they go to places without credit facilities. If this is your reason for looking for a credit card, a credit card with low interest rates will be especially important for your consideration.

Options and Incentives Other Than Low APR

After you get a credit card, you will also need to consider the payments. You need to decide if you want to pay the balance in full at the end of the month or just the minimum required amount. With a low interest credit card, you will have the option of defering payments with minimum interest. Hence when you compare credit cards, you should look at the introductory rates, balance transfer rates, and other offers that apply to new credit cards applicants. Some will offer you amazing deals and even zero interest rates, especially if you have good credit.

Another important area to look at when comparing credit cards is the incentives. There are many cards out there that will give you attractive incentives, such as reward points and even cash back with purchases that can be used towards paying the balance. There are several common incentives out there with credit cards, all you have to do is look around and compare.

Paying Less Interest Is Still The Most Important Criteria
The key area that you should look at and compare is the interest rates and APR (Annual Percentage Rate). The interest rate on the credit card or the APR is what you will have to pay on what you purchase when the incentive period runs out. APR rates varies among credit cards, so it is always in your best interest to shop around. The lower the interest rates or APR rate you get, the better off you will be.

One more area to look out for is the minimum payment amount. Typical minimum payment balances starts around 3%. There are some exceptional ones that can be lower while others tend to be higher, hence it pays to look around. The interest free period is a concern too, as you will naturally want to choose the longest period that you can keep the payments down.

After comparing and choosing the credit card suitable for your lifestyle and needs, you should always make sure that you know exactly what you are getting. Whether be it low interest rates or attractive incentives, credit cards are double edge swords. They are great to have, but they can be troublesome when the interest on that low interest 8.8% credit card starts accumulating. Put some time to research the various credit cards available to you, you will definitely find one suitable for you. A credit card with low interest rate is a important criteria, but consider the other incentives and options. Sometimes the rebates can outweigh the low interest. And dun forget to pay your bills on time.

Jared L