Best Credit Card Rates

June 2nd, 2010

Finding the Best Credit Card Rates to Suit You

If you’re shopping around for the best credit card rates, there are some important considerations to think about before you apply. While banks might advertise very low rates on balance transfers or purchases, there can sometimes be other ways to reduce the amount you pay in interest that they don’t always advertise.

Compare Rates by Customer Type

The biggest misconception people have about shopping for the best credit card rates is assuming that all customers are exactly the same. The type of customer you are should dictate the actual credit card offer that will be right for you.

High Credit Card Balances – if you’re struggling to repay your credit card balances and you find that your debt stays about the same each month, you should be looking for the best balance transfer credit card offer you can find. This will reduce your interest costs and make it much easier to begin repaying your debt more quickly.

Frequent Credit Card Use – some customers use credit cards regularly, but can sometimes take a little bit of time to repay the outstanding balance. Searching for a credit card that offers interest free days could be helpful, as you have some time before your balance accrues interest. Once the interest free days are expired, be sure your credit card charges a low purchase interest rate to keep your costs as low as possible.

Emergency Use Credit Cards – if you’re the type of customer who only uses a credit card to pay for purchases in emergencies, then you could benefit from looking for the best credit card rates on purchases you can find. This means you’re paying less on the interest rates charged on purchases. Ideally, you should also look for a low annual fee.

Regular Credit Card User – There are some customers who use a credit card to pay for almost everything they do. If you’re like this, and you’re also willing to repay your outstanding balance in full before the statement due date each month, the best credit card rates are of less importance than the interest free days you can receive.

This is because you’re likely not to pay any interest at all on your purchases, as long as you continue to repay your balances on time. You should also consider looking into credit cards with rewards programs attached, as you’re likely to benefit from accumulating rewards points quickly with regular credit card use.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)