Know About Low Interest Credit Cards

The very low interest credit cards are mainly available for people and businesses with good enough credit to qualify for one.  The differences in what credit card companies are charging for interest rates are alarming. Low interest credit cards are generally considered to be fewer than 10% interest rate. High interest credit cards can soar to over 30% in some cases. You need to be well informed of just how many credit card opportunities are available to you before making a selection.

Keeping the low interest rate over the lifetime of your account is easy if you play by the credit card company’s rules. All payments must be paid on time. No late payments will be tolerated by the credit card company. They will take away that low interest credit card and turn it into a default rate interest. This is usually the highest possible interest rate that they can charge you by law, around 30%. Yes that’s right 30% is the average default rate. Credit card companies can do this even if the payment that you make late isn’t made to them. It can be any other bill that you have paid late on. If it is reported to the credit bureaus, chances are, your credit card company will find out about it and send you a notice of change in terms or something similar.

Finding a low interest credit card that you qualify for will benefit you in many ways. Most credit cards come with a very low to 0% introductory rate for balance transfers. This can potentially save you thousands of dollars over the life of your introductory period. If you transfer a balance from a credit card that has a high interest rate, the amount you pay will come directly off of the balance and no additional interest will be charged during the introductory period. You may even be able to pay off your debt completely with a low interest credit card that has a 0% introductory period. Divide the amount that you transferred by the number of months they allow for the introductory period . This will be the dollar amount it will take for each monthly payment to have it completely paid in full when your introductory period is over.

If you need a low interest credit card because you are thinking of making a big purchase that you want to pay off over a period of time, consider finding a card with an introductory rate on purchases made within a certain timeframe. You might even get lucky and find a 0% on purchases. This lets you buy the item now and pay for it with no interest at all. They allow you to borrow money for free under certain conditions.

This entry was posted on Tuesday, November 27th, 2007 and is filed under Credit Card Applications, Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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How Credit Scores Affect Mortgage Applications

With a good credit score an applicant will receive prompt response from many lenders, all of them offering low interest rates and low down payment options. The loan amount offered also may be high. On the contrary a low credit score would result in a lot of rejection from various mortgage financers. Because creditors wouldn’t come forward easily to give credit to individuals that have a history of difficulty in repaying existing loans. After all, creditors take risk when they finance mortgages against the credit history of a debtor. Naturally, they will wish to remain on the safe side and pick up less risky ones that have good credit histories. A good credit score means less chance of missing on payments and therefore less risky.

But there are some real risk takers that will come forward to finance mortgages for individuals with bad credit scores. They would charge high down payments and always high interest rates though. They may also fix additional charges for every little paper work and may charge high closing rates. The loan amount offered will also be considerably less. The individual with poor credit scores will not have much choice but to accept the terms and conditions as there are no other alternatives. This is a tight situation and to avoid this you must have a good credit score.

People with bad credit may fall in to the trap of ’secured loans’. Secured loans are the ones where the loan applicant offers an asset as collateral security. The lender becomes secure about the repayment of the loan and not the borrower. Securing a loan with bad credit score becomes easy only when the applicant is willing to offer some asset as collateral security. This again is a very dangerous situation where an individual runs the risk of losing his entire collateral asset in case of failing to pay the loan installments in time. An individual should always avoid such type of a loan.

Resort properties normally require large amounts of finance which a person with bad credit may find it difficult to obtain. So it is always advisable to keep your credit score high. Incase the credit score becomes low due to unavoidable financial reasons it can be improved upon. There is no need to lose hope simply because a person has a low credit score. If the property that he intends to buy has good equity he should go out and try to obtain finances for it. There are many sub prime lenders willing to offer their services.

For a review of your credit report as it relates to a mortgage loan and a consultation on the best loans available to you, give us a confidential, no obligation and no cost call.