Credit Card Interest Rates

What Is a Good Interest Rate on Credit Cards?

Credit card interest rates usually presented as APR or Annual Percentage Rate is the fees paid for spending money that in normal terms, users cannot immediately avail of. Although all credit card companies offer interest rates, there are still numerous who are overcharging. This article will present details on how to identify good interest rates a company may offer.

  • Having a good credit score will let you avail of lower interest rates. Generally, a 10% interest rate cards are reasonable enough but there are still some who offers a rather lower rate. One of the requirements to qualify is a way above the average credit standing. If you are not sure of your credit points, you may browse several sites which offer credit card computation for free.

In addition, those with secured credit are ensured of having the base introductory offer of about 6% while those with less than perfect credit score will be able to avail of cards having 10% to 30% rate. Individuals with low credit points can still avail of a good interest card from a credit union. It allows its members to apply online and gives a 9.9% to 12% APR.

  • Credit Card Interest RatesCredit cards have rewards programs attached to them and comparatively, those with these programs charges higher interest rates. However, companies with rewards cards however should only have at its lowest, an interest rates ranging from 10.99% – 19.99%.
  • Good interest rates are also dependent on the person’s location since the APR varies from country to country. In US for example, the APR ranges from 6% to 40% whereas in UK, it ranges from 18.9% and above.
  • Good credit card interest rates should be standard. There are credit card companies which claim to offer 0% fixed rate to acquire applicants when the truth is this is only for 6 months or 1 year. Unfortunately, there are also those companies which impose hidden charges for every transaction made on the card and these add up to the interest rate.  There are also companies which impose different rates for each transactions; this is acceptable as long as the rate imposed is clearly specified on the terms and conditions.
  • A good interest rate offering does not totally mean a superior credit card. There are cards with higher rates but are very flexible on giving its consumers with lots of cash back, flier miles and discounts. Generally, these high rates are meritorious given the enumerable perks you can get. Contrastingly, there are also companies offering low interest rate but consumers are given exorbitant fees for over usage, frequent cash advances, and the like. 

Having credit cards is not totally disadvantageous if a person will just be aware of the fine prints attached to it. Interest rates of credit companies vary and this should be a main factor in choosing the best card suited for your needs. Being insightful and inquisitive of all the rates included on your billing statement might save you a lot of charges and may result to a very good credit score.