Card Credit Interest Low Rate

If a person has earned good to excellent credit scores, they should be able to easily find low interest rate credit cards. Good to excellent FICO (Fair Isaac Corporation) scores range from 650 to 850 points. The average score for most people is 723. Persons who have good to excellent credit scores have demonstrated by their previous use of credit that they are good borrowers who present a low risk of non-payment to lenders.

Some people have moved up from a low credit score into the better range above 650. If they have old credit balances at high interest rates, it is in their best interest to switch those high interest balances over to a lower rate credit card. This is done using a balance transfer transaction. Normally there is a fee for this, about a 3% to 5% charge for whatever balance amount is transferred.

When trying to find low credit card interest, remember a few important points:

• Low interest rate credit cards are best for carrying balances forward
• A low credit card interest rate is better than other “rewards” if you are making a large purchase or want to make balance transfers
• Many 0% interest rates are for a limited time period, such as 6, 12, or 18 months; after that period, rates may rise to 6.5% to 15.99% or more
• When an introductory period is over, the interest rate may skyrocket
• Fixed interest rates are preferable to variable ones
• Local credit unions and small banks often have very low rates

There are many credit card rate comparison websites on the Internet. Many of these are affiliates working for credit card companies. They receive a commission or fee for every person they link over to a credit card company if that person applies for and receives a credit card. Their information may be skewed towards a particular company for that reason.

At several of these websites, it is clear that a few credit cards always rise to the top of the list for good deals and low rates. These are: Citi, Discover and Chase. By way of comparison, here is how their credit card offers rank:

1. City Platinum Select Master Card: 0% balance transfers with 3% fee on transfers, up to 18 months on both balance transfers and purchases, interest as low as 9.99%, no annual fee and requires good credit history.
2. Discover More Cards: 0% balance transfer with 4% fee on transfers, 12 months on balance transfers but 6 months on purchases, interest as low as 11.99%, no annual fee and requires good credit history.
3. Chase Freedom Card: 0% on balance transfers with 5% fee on transfers, 12 months on balance transfers but 6 months on purchases, interest as low as 12.99%, no annual fee and requires excellent credit history.

Always read fine print and all disclosures before getting any credit card. Watch out for fees and penalties or interest rate change possibilities. Look for low rates online at www.bankrate.com and in local newspaper business sections. Ask current lenders if you can obtain a lower rate.