How to Find the Best Credit Card Rates

It is important to look for the best credit card rates when you start searching for a new line of credit. Many consumers allow themselves to be dazzled by credit limits and other offers that come with some of the newest cards.

The most significant factor with any credit card is really its interest rate. Ignoring this fact can lead you into a lot of trouble.

The Problem with Interest Rates
Regardless of how much you owe, your interest rate will determine if you ever manage to pay off your debt. This can also undermine your finances if you choose simply to service a debt instead of pay it down.

High interest rates make everything cost much more because you are probably still paying for items long after you have forgotten about them.

How to Find the Best Credit Card Rates
In order to avoid paying too much, take a few tips about how to find the best possible rate for you. Sometimes, the optimal rates offered by a company are out of your reach due to a less than perfect credit history.

However, you can still acquire other rates that are above average if you have sufficiently good credit.

    • Look at the Entire Rate
    Many credit card companies will send you deals in the mail that seem too good to be true. They offer incredibly low introductory rates. However, if you want to take good care of your credit rating, you should look at what the rate will be after the introductory period.

    Unfortunately, many people get themselves in trouble when they use these cards to create debt that they believe they will pay off before this introductory rate lapses. When they fail to do this, things get ugly for their payment history.

    This can happen, in particular, with clients who take advantage of the low introductory rates to make balance transfers.(Read How Do Balance Transfer Credit Cards Work?)

    • Sacrifice
    Be ready to sacrifice rewards and other extras for a low rate. There is nothing more important. If you yearn for the extras that some other plans have, remember that you will be able to buy them with the money that you do not spend on interest payments.

    • Comparison Shop
    No matter how great a rate appears, make sure to compare it to some other card rates first. It may appear great to you but there may be a general movement down in rates. If you are not aware of this phenomenon, then you may miss out on other deals that are even better.

    There are several online tools available to help you with this effort. They can compare cards based on a variety of factors. Use our handy credit card comparison calculator here.
When you look for the best credit card rates, remember to think as well about how the new card may help or hurt your credit rating. Having more available credit is usually a good thing for credit scores.

However, asking for more credit can register negatively on your ranking. Being rejected, even for a superior card, can also damage your credit rating.

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