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Credit Card Shopping is Fun and You Can Save on Interest Rates
Credit card interest rates range from very inexpensive to predatory. If you shop on-line for credit cards paying particular attention to interest rates you will quickly find that on the low end some credit cards such as the American Express Blue card offer %8.99 interest, and that interest rates can run as high as three times that much on other cards.
The difference in how much interest you might pay on a credit card is staggering when you look at the two extreme cases. (If you pay off the balance of your credit card each month this difference is small, but you may still pay some interest - it depends on the Grace Period your card offers. If you don't know what a "Grace Period" is, read on.) Here's an example: for each $1,000 of your yearly average balance, over a year's time you would pay $90 in interest with that low-interest American Express card, and over $250 with another high interest credit card!
You need to be aware of the interest rates that your credit cards are charging you, and you should always be on the lookout for a better deal. Here are a few tips to remember when shopping for low interest credit cards:
* Shopping for credit cards on-line is the easiest way to get the best deal available. Credit card web sites carry many different credit card products and allow you to compare them point-for-point with the click of a mouse - and all in the privacy of your home. You can shop, apply and be accepted - all on-line.
* Don't sucker in for the credit card offers that show up every week in your mailbox. If you have good or excellent credit chances are that several of the larger banks are spamming you via US mail with credit offers. They all offer worse credit rates than those that you can find with a little time spent on-line shopping for credit cards. (By the way, every offer that comes in the US mail has to include a Truth in Lending Disclosure statement. Make a game of looking at the interest rates listed on those - just before you throw it out. You'll see what I mean about those high interest rates!)
* Pay attention to the Grace Period quoted by all credit card vendors as a part of their agreement with you. The grace period is the amount of time between when you purchase an item with your credit card and when the company begins to charge you interest on that purchase. They typically vary from zero to thirty days, and longer is better. If you're like many who pay their complete balances every month, you may be surprised to find that you still end up paying interest in some cases; what you're seeing is a short Grace Period in action. Avoid short grace periods.
Don't have too many credit cards at once. Be a smart consumer - shop. When you find two or three good cards, apply for them and once you are accepted close your older less efficient credit accounts. Credit bureaus like to see that you manage a small number of quality credit cards, and you do it well.
None of us, from the poorest to the wealthiest, enjoys throwing money away. If you're carrying credit cards in your wallet that aren't optimized to your spending habits that is exactly what you're doing. Take a hard look at the terms of your current credit cards and shop - there is almost always a better deal available.
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