The Market is Wide Open for That Low Rate Credit Card
Contributed by Alix Mcmurray
The Market is Wide Open for That Low Rate Credit Card
Shopping for a low rate credit card can feel very much like being in an old-time farmers' market or bazaar. You can almost hear the merchants calling out their wares. But instead of "Get your fresh, juicy apples and pears right here! " it's more like, "Get your Zero APR for six months and Five Percent Cash Back here! Step up, don't be shy, Ladies and Gents, no credit check needed! "
Why on the Short-term it's a Buyers' Market for that Low Rate Credit Card
Credit is big business. It is argued that America runs on credit, to our own detriment at times. If you watch t.v. at all, you know how frequently credit counseling and debt consolidation advertisements are run. They've taken the place of arthritis medication ads during the evening news. While having credit is a privilege and often a needed convenience, it is easily abused.
Credit card companies can rely on long-term profit from finance charges and increased interest rates for outstanding balances. Thus it is good business sense for them to offer the buyer short-term savings in the form of low interest rates and other inducements.
Let's Shake on It: Qualifying for that Low Rate Credit Card
Many companies will offer you zero percent interest for the first six or even 12 months of card ownership. However, that APR may go up significantly after that -- typically anywhere from 8 to 19 percent, depending upon the type of purchase or transaction. There is a small minority of companies who offer significantly lower interest rates after that zero introductory period. But you'll need to provide evidence of your solvency and trustworthiness.
This evidence can take the form of documented income over the past two years, including payroll stubs,tax returns and proof of direct deposit. As indicated by a good old fashioned handshake, the merchant and customer trust that each will do right by the other.
