Card Credit Low Rate

How low a credit card lowest rate goes depends partly upon an account holder’s credit score on past payments of their credit accounts. If they have been on time with all their past payments due, they should have an excellent credit record with a high credit score. On the other hand, if they have missed payments, defaulted on loans, gone bankrupt or otherwise been less prudent with their credit accounts this would be reflected on their credit history as a bad, poor or fair credit history. People with less than good credit histories suffer with high rates and fees.

The story of credit is simple: when someone lends you money and you agreed to their terms for repayment, you need to follow that agreement to the letter. Getting the lowest credit card rate is advantageous to the borrower. Getting a high rate benefits the lender. Anything over 10% is high; under today’s credit rules, the credit card companies are charging just about all they want and many are taking advantage of that ability. Highest credit card rates can run from 24.99% to as much as 79.9% at First Premier Bank. Many also charge high annual fees and high penalties for late payments.

State usury laws also affect high and low interest rates for credit. Under usury laws, states set a limit on the rate that can be charged for lending. About one half of the states in the United States do not have caps on interest rates. Many states that have interest rate caps are removing those caps. Most caps now are from 18% to 24% for credit card interest rates. The amount a credit card company can charge is set by the usury laws of the state where the credit card company is located; where the consumer lives does not matter. This is why many lenders are located in the states of South Dakota, Nevada, Utah, and other states that have liberal or no usury laws.

Among credit card companies that are headquarted in U.S. states, those in Arkansas have the lowest rates. This is because Arkansas caps interest at 5% above the federal discount rate. It is in the consumer’s best interest to locate a low credit card rate. Some credit unions and smaller banks offer rates below 7% interest to 9.99% interest. If a person can get these low rates of interest, they are indeed getting card credit with a low rate.

When seeking card credit at low rates, watch out for high fees and penalties that are charged for having that card. Some companies charge excessive annual fees to make up for what they cannot get in interest rates. In seeking low credit card rates, buyers should beware.

To find a credit card low rate, do comparison shopping on the Internet and read all the small print until you understand it. Make all payments on time and monitor your credit record. Look at credit union credit cards for low card rates. Card credit low rates are available but not easy to find.