Low Interest Credit Cards

Many people use their credit cards to help manage their monthly budget and help them be more responsible over their finances. If you are like many people, you do that same thing with your credit card. When used wisely credit cards can certainly help you to be more financially responsible. However, there is more that you could be getting out of your credit card than security and convenience. You can also get valuable rewards.

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Millions of Americans have been stung by the cost of maintaining their credit carddebt, pushing some into bankruptcy and delinquency.

However, the economic climate also has negative results for the credit card companies themselves. Nationwide levels of chargeoffs and delinquencies have reached new highs this year, while showing signs of at least leveling off in recent months.

This week, Fitch Ratings said the credit card delinquency rate will remain high well into next year, and that bankruptcies and unemployment will continue to rise in that period. This causes lower revenues for credit card companies at a time when many of them are bracing for federal limits on late fees and interest rates set to take effect by February. Read more…

There is absolutely no question that banks and credit card issuers are rushing to increase interest rates and fees ahead of credit card reform legislation taking full effect.

They are scrambling to find new sources of revenue to replace the ones that have served them so well but will now no longer be allowed by law. I am speaking, of course, about arbitrarily raising interest rates on people that currently carry balances.

Many people have grown quite angry with their respective credit card issuers, and understandably so. It has left many cardholders to ponder whether or not it would be a good idea to cut up their credit cards and use debit cards in their place.

After all, a debit card with a Visa or MasterCard logo will be accepted anywhere that a credit card is.

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New research has suggested that Brits are not planning to pay back the debt on their credit cards for another six months.

Financial advice website moneysupermarket.com has warned that major credit card issuers such as HSBC, Natwest and Lloyds TSB will be hiking the rates on their products in the near future.

Despite this news, research from the site has shown that nearly one-third of plastic users plan to delay making repayments for the next six months, risking having to shell out for the increased credit card charges.

This figure is as high as 38 per cent for the 20 to 29 age group, for which only 26 per cent pay off their credit card balance in full each month.

While consumers are planning to remain in debt to the credit card issuers over the Christmas period, moneysupermarket.com also found that several popular items for presents will become much pricier if outstanding payments for purchases are not made.

The Nintendo Wii console and Wii Fit game retail at £219.99, but could end up costing £240.56 if debts are not cleared until 12 months after the transaction.

Peter Harrison, credit cards expert at moneysupermarket.com, said: “People must be extremely careful about carrying debt on credit cards for long periods of time – you don’t want to be paying for this year’s presents when the Christmas decorations are rolled out again next year; particularly as rates could be at new dizzy heights.”

Previous research by the website showed that 17 per cent of British people plan to use balance transfer credit cards to fund presents, food and drink for the festive period.

It advised taking out a zero per cent credit card in order to keep the costs of Christmas down.

By Kevin Shield

Credit card companies have recently starting offering 0% APR offers lasting one full year again.  In the past, nearly every credit card advertised a 0% APR for 1 year.  However, during the past nine months, many credit card companies started reducing the length of these offers to 6 months.  Recently, however, more and more credit card companies are upping the duration of 0% credit card offers, at least in their advertisements.  As always, it takes a little detective work to find which companies are offering the best credit card deals.

Let me start with a question:  what’s the difference between a 0% APR for 12 months and a 0% APR for up to 12 months.  In many instances, its six months.  Without naming names, some companies advertise a 0% APR for 12 months, but state in the fine print that the rate may only last for 6 months, based on a review of your credit.  In the past, a majority of people would have qualified for a 0% APR lasting a full year.  Today, credit card companies are advertising 0% rates for a full year, but only granting these rates to consumers with the best credit.  The rest of us get shorter 0% rates and often don’t find out until its much too late.

Now, people with excellent credit (780 and higher credit scores) don’t have to worry.  They’ll get a 0% APR for a full year.  However, when many of us apply for a 0% credit card, finding one that only offers one introductory period is the key to locking in a low rate for an extended period of time.

The same advertising technique is also used with long term interest rates.  And the difference here can be quite substantial.  One popular offer currently advertises long term interest rates as low as 13.24%.  However, it is possible to be approved for this card and offered a rate in excess of 22%!  Thus, as with introductory interest rates, long term interest rates that include the verbiage “as low as” should be looked at with skepticism.  Unless you have superior credit, avoid “as low as” and “up to” offers and opt for credit cards that give applicants the rates they advertise.