Feb/120
Low Interest Secured Credit Cards
If you’re in the market to get a secured credit card, you may be wondering if you can find a card that has a low interest rate. While most of the rates on secured cards are generally high, there are some options when it comes to finding a low rate. Here’s a few tips you can use in order to find a lower rate.
Look for higher fees – I know you won’t want to pay higher fees when it comes to annual fees, monthly fees, etc but generally, when the fees are higher, you’re going to pay less interest. This is a way for the credit card companies to recoup the costs.
Look for intro rates – I know intro rates don’t’ last for long but if you can find one that’s good enough, you may be able to use the card and then request a different type of card. Sometimes this works and sometimes it doesn’t. It never hurts to try! The worst thing that can happen is that you will need to cancel the card.
Research online – There are a lot of cards out there. It’s your job to research all of the cards and find the lowest rate if that’s what you’re worried about. Since rates change on a daily basis, I can’t tell you exactly which card has the best rate.
As long as you do your research and you follow some of the tips above, you’ll be able to find a card that hopefully suits your needs. Honestly though, in the long run, worry about paying your card off in full so that you can avoid the interest rates.
Dec/110
Pros and Cons of Low Interest Credit Cards
The name might lead many to believe that these low interest credit cards have lower interest rate on outstanding balance beyond the bill payment date than other cards. This is true to some extent but not entirely. In reality, the interest rate also known as APR is of two types, the initial APR and the regular APR. The initial APR is either 0% or very low for many credit cards, while the regular APR is the more nominal rate charged after a fixed time period. The point to consider here for customers is what the time frame of the initial period is.
Types Of Initial Periods
For example, the Capital One Venture rewards Credit card has the initial period lasting up to May 2011, which is one way of specifying the time period. Therefore, the card benefits include no interest rate or 0% APR on all purchases during the time frame which is very good. If you are a customer with a clean credit history and no outstanding debt, you could prefer this card.
Another way of looking at the initial period is by distinguishing between balance transfers and general purchases. Chase Freedom Visa card has 12 months initial period for balance transfer while it is only 6 months for purchases, which is less than that of Venture. However, if you are a customer who has many outstanding debts or unpaid bill amounts on other cards you can transfer all the balance to this card saving interest that is accumulating in other cards due to the outstanding dues. You will now have a 12 month period to pay off those balances without worrying about accumulating interests which are usually high after that period. At least you will get a so called breather.
Another offer present in some low interest cards is when the intro period talks about 7- 10 billing cycles which is slightly different way of looking at the whole deal. Customers also need to look at the terms and conditions of these low interest credit as they might have a catch or two.
Other Advantages Of Low Interest Credit Cards
Low interest credit cards apart from their zero interest rate in the initial period also sometimes have cash back offers and bonus payment. For example, Chase Freedom offers a bonus of $100 for every $799 of purchase that you do. You must once again check the difference between purchases and balance transfers. Most cards do not include balance transfers at all in these benefits while some cards may give discounts, which means you can actually go one step ahead and reduce your outstanding balance by transferring all dues to one credit card deals.
Cons Of Low Interest Credit Cards
These cards have a regular rate which is higher than you would come to expect from standard cards. This means after transferring all your outstanding balances to one card you must be careful not to let those dues stay unpaid beyond the initial period. Some credit cards in fact have variable interest rates, depending on purchases which mean you might have to pay extra interest for amounts accrued for balance transfers.
Nov/110
History of Credit Cards
Credit Cards have become an absolute necessity so much so that we take them for granted. A number of money experts have already slated the paper currency as a dying dinosaur. But have you ever wondered where did this plastic money of credit card come from? Whose genius was it anyways?
Though the idea of “have now, pay later” existed since the 1700s but it was only in the early 20th century that the banks started taking credit protection in form of overdrafts. In 1914 Western Union gave its customers a metal card allowing them interest free deferral payments. This gave their clients a freedom to spend beyond their means. However, the idea of actual credit card did not strike ‘father of Credit Cards’, Frank McNamara until he forgot his wallet back home while going out for a dinner with friends.
This embarrassing moment was just too much for McNamara. Thus, he created the “Diner’s club card”. It was initially a businessmen’s card for dinners and retails purchases while traveling but by the end of 1950 it had become a phenomenon. A national frenzy that began with just 200 customers who could use it in 27 restaurants, it swelled to such massive size that it spread over the whole USA with 20000 customers and more varied kinds of retailers subscribed to it as credit providers. The Diners card charged seven percent for each individual transaction with card subscribers paying a three-dollar annual fee. Stores and service companies readily extended this facility. They could benefit from it since the customers spent more than they would if they had to pay the cash up frontally.
The General Petroleum Corporation was one of the first companies to offer an actual credit card that allowed for fuel and automotive repair purchases to its employees. They could use their card and make payments towards these things with portions of their paychecks.
The monopoly of Diner’s club was short lived. McNamara withdrew his share of money from the company in 1952. Very soon American Express launched its similar yet more generalized credit card and Bank of America came out with BankAmericard (now called VISA) in 1958. Master card came up in 1966. These new market players overpowered the old titan.
While McNamara created credit cards, John Biggins is acknowledged as the inventor of the bank credit card. He worked at the Flatbush National Bank of Brooklyn in New York. In 1946, Mr. Biggins developed the “Charge-It” program in which local merchants who accepted the card would deposit sales slips into the bank and the bank billed the customer.
Nov/110
Credit Cards With Low APR – The Secrets
Low interest credit cards seem to be the answer to prayers for many people these days. More and more people are in financial trouble and in debt over their heads and are desperately trying to get out from under. When they see a low interest or even 0% interest card they think their troubles are over. It can be very enticing and the credit card companies make it seem very appealing.
The truth is their troubles may just be beginning. Before anyone applies for this type of credit card it is advisable to read the fine print.
First of all, most of the time the low interest rate is only for a short period of time, usually for the first year. After the year has passed they may find that the interest rate increases and in many cases to a higher rate than the regular credit card they had before. This is a way for the credit card company to recoup their losses from the low interest rate in the beginning.
Also it is important to note that if you are late or miss a payment, not only does it affect your credit rating, the credit company will charge late fees. In addition they will erase the low or 0% rate and raise it back up to a higher level rate. This usually goes retroactively back to the beginning of the account so in effect you are now paying the high interest rate plus the late fees tacked on. The low rate usually applies to new purchases, not a balance transfer from another card, or cash advances.
Sometimes cash advances are at an even higher rate, plus fees. What it boils down to is that these types of promotions are rarely a good deal for most consumers, they end up costing you more in the long run. Keep in mind a credit company is in the business of making money.
Regardless of all the non-sense fees, as long as you’re smart with your application and you know what you’re getting yourself into, you should be able to find yourself a great card that works for you!
Nov/110
Credit Cards For People With Very Bad Credit History
Credit cards for people with very bad credit are difficult to get, but they can be acquired with a bit of effort on your part.
Now, if you have less than stellar credit, you are going to have problems getting a card from most credit card companies. This is because with credit history that’s in the red, you represent a significant risk for them.
This means it’s a challenge to get such a card. You can still apply online for an unsecured credit card with poor credit history, but you probably won’t get accepted – if you do, you will be give a card with VERY high interest and many restrictions placed on it.
The key then is to look at getting a secured card. Secured cards are great for many reasons – mainly you can use them to help rebuild your credit history and they are very easy to get.
The way a secured card works is that when you apply for one, you put a deposit down that becomes the card limit. Since you are essentially “paying” for the credit card, you stand a VERY good chance of getting an unsecured card with bad credit.
Indeed, if your credit history is poor, you will probably only be able to get a secured credit card for people with very bad credit.
Before getting a card like this, you need to look around online for the best credit card for people with poor credit. Companies offer different interest rates, so it’s best to get the lowest interest rate secure card you can find.