Much has been said and heard about low introductory rate credit cards already. Most of you know that these credit cards offer a low rate of interest as an introductory offer and also that these low rates are valid for a short time only. We all receive several offers promoting low introductory rate credit cards each day in our mail boxes, inboxes, magazines etc. Though the basics about these cards are well known, there are certain facts that are yet unknown to the general public. Let us try to understand how these low introductory rate credit cards work.
What should you know when looking for offers?
When you are trying to find the best offers for low introductory rate credit cards, there are certain factors that need to be taken into consideration. The annual charge on some of these cards may be quite high and that makes such offers not so worthy of your attention. But at the same time, if you find that some of these low rate credit cards are charging a high annual fee while charging lower interest rates on the balance, then such offers are really worth your while.
Annual charges are a onetime fee irrespective of your outstanding balance, but interest rates are dependent upon your total outstanding balance and also takes in to consideration any delayed payment etc. So it makes better sense to opt for a slightly higher annual charge when compared to a higher rate of interest.
What is the relation between low introductory rate credit cards and credit score?
Your credit score has a huge say when it comes to low introductory rate credit cards. It goes without saying that the better your credit score is, the more are the chances to get one of these credit cards issued to you. Most of the offers related to these low introductory cards are specifically targeted to consumers with excellent credit history and score. But that does not mean that these cards are exclusively meant only for them.
It is possible to get hold of these low introductory rate credit cards, even if you have bad credit. Just apply for a checking and savings account with a bank or credit union. Then you can apply for a low rate credit card via your bank. Your chances of getting a low rate card issued are good if you apply via your bank, but do not expect a large credit limit to go with it. Often times you have to compromise with a lower credit limit when you want to get low introductory rate credit cards with bad credit history.
Not everyone gets to enjoy low introductory rate credit cards, but if you get one then consider yourself lucky. These low rate credit card offers will help you pay off your outstanding debts on your credit cards without having to pay through your nose towards interest charges. Even if you are offered these low rates only for a short while, you are bound to gain from them in one way or another.
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