How to Compare Credit Card Rates

How to Compare Credit Card Rates

Evaluate the Features and Benefits before Signing Up

Before getting a new credit card, it is vital to compare carefully the rates associated with different credit cards. Different credit card providers offer different interest rates. The best credit card is the one that offers the least or minimum interest rate. As there is a very strict and reformed credit card law, so issuers are creating ways to ensure the recovery of lost profits. Issuers are interested in their profit and using various techniques to achieve their target. The high-interest rate is their ultimate objective, and you need to be very careful. You need to take the time for proper comparison of the rates and then go for sign up. If you want to avoid any risk and enjoy a safe and great deal, the first and most important step is to evaluate clearly the agreement. You must understand the agreement as issuers can trap anyone through their technical agreement.

As mentioned that understanding an agreement is mandatory so, it is also important to focus on the introductory rates. Most of the time issuers offer some very cool introductory rates, but such rates are offered for a very short period. Some people go for such rates blindly and sign up for the wrong deal. You will get attractive introductory rates but it will be just for a month or two, and then you will realize the significance of comparison before signing up. So, the important point is to know about the period of introductory rates. Make a proper comparison of credit card rates with other and also evaluate the agreement that the issuer is offering. Without comparison and evaluation, it will not be a matter of surprise to have high bills at the end of the month.
Proper research about credit cards can help you in this regard. Look at the entire information associated with the credit card. Browse credible online sources where you can go through all the information, reviews and feedback about the rate and agreement. The best way to compare credit card rate is to analyze the pros and cons associated with the credit card. Once you analyze the entire features of credit card carefully, it will become easy for you to sign up or not. Application approval is also challenging because of the economic crunch and high unemployment rates. The interest rate that you may be offered is directly connected with your credit rating. If you are enjoying good credit history i.e. satisfactory credit worthiness, you can get great deals a minimum annual percentage rate (APR). You need to have your credit report before applying for a credit card. It is important because you can eliminate all those information that can reduce your credit rating and get better chances of application approval and low-interest rate that everyone look for. Getting your credit report is not challenging or long term process. Everyone is legally entitled to get a copy of credit report without any charges. This is important as you can sign up for the best deal with good credit report. Comparing credit card rates won’t help you if you don’t know about your status that is in your credit report.

The Most Important Factors

Various research studies show that most folks pay more attention to the associated rates before applying for any card. A lot of card holders use their card with the intention to get cash back on their purchases. Some individuals engage in arbitrage process. Either you are looking for cash back or arbitrage you can’t ignore the importance of annual percentage rate (APR). APR plays a vital role and helps you to get the right cards suitable for you or your venture.

What is Purchase APR?

Purchase APR is the annual percentage rate of interest that you will be charged based on your outstanding balance every month. The 0% APR purchase cards are enjoying good popularity as it allows the holder to make purchases without any payment of interest for the introductory period. If you are planning to buy something say High-Definition Television with 0% APR purchase card, it’s important you have long enough introductory period in order to pay down your credit card without paying any additional payment as interest.

Balance Transfer APR

Here a conversion process is involved. A low balance transfer card will give you the opportunity to convert your high-interest debt into a low-interest account and save some money in the conversion process. Normally 0% balance transfer cards are used for arbitraging, but there are people transfer certain loans, like car loans to 0% BT APR cards with the intention to avoid high-interest rates on their balance. Careful conversion can really help you in saving certain amount.

Cash Advance APR

Cash advances are normally used for short-term loans. As it facilitates you to get a short-term loan, so the card issuers put high rates on cash advances. If you frequently need cash and planning to exercise this facility on a regular basis, it is important to look for a card that has the lowest cash back offer. In this way, you can save some dollars.

The Bottom Line

Applying for a credit card doesn’t mean to fill the application and get the first card with certain facilities. A card agreement is a solid contract, and always makes it sure to get the right card that brings maximum benefits you deserve. Both your credit line and credit card rate are closely associated with your credit history. If you manage your credit accounts in a better way it means, you have more chances of application approval and lucrative offers. Your credit card rate dependends on your credit worthiness. Therefore, you need to be very careful about your credit account. At the end of day, every card holder must focus on two factors only;

  1. The card must satisfy your requirement and nothing less.
  2. 2. Must give reward either in cash or gifts.

Alternative – MoneyPolo prepaid card!

If you do not want to deal with credit screening, checking of your payment history and approval process, you can sign up for a MoneyPolo prepaid card. You will receive a standard Visa or MasterCard. Prepaid cards do not allow you to spend more that you actually have. You keep your expenses fully under control and there are no bad surprises on a credit card bill.