Need a Credit Card with a Low Interest Rate?
Contributed by Stephanie Litaker
Where to start your search for a low interest rate credit card
If you don't have a good credit score, you can kiss you hopes of getting a credit card with a low interest rate goodbye. Sorry to be so blunt, but that's just the bottom line and there's no reason to sugar coat this in any way.
Credit card companies offer low interest rates to customers they believe are sound credit risks, so basically the people with a good credit history will get the low interest rate. People that have a poor credit history will be faced with what can be an astronomical interest rate. So how do you avoid this if you have a bad credit score? Well, the only way to avoid this situation is to not get a credit card. Or, you can wait a couple of years, pay your bills on time, improve your credit score, then reapply for the lower interest rate credit cards.
A lot of debt will equal a high interest rate on your credit card
Again, if you are seen as a high-risk borrower, a credit card company will not be willing to give you a low interest rate credit card. So just because you read the first part of this and thought it didn't apply to you because you do pay your bills and that is reflected in your credit history, you are not guaranteed to get a low interest rate on your credit card. Creditors look not only at your credit score and credit history, but they also look at your level of debt.
So if they see that you have an enormous amount of debt, you will be considered a high risk borrower, and you will pay a higher interest rate.
