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A good interest rate on a credit card is one that is as low as possible, ideally 0 %. However since the only time you will obtain a 0 % rate is as an
introductory rate, defining a good interest rate is not that straight forward.
Some of the lowest interest rates on credit cards are found on secured credit cards. These are credit cards that are secured by cash collateral or even
sometimes the equity in a credit card holder's home.
Interest rates are based on ones credit history - typically the better your credit history, the better your interest rates. In the United States interest
rates on credit cards range from 7.25 % and above, in Canada - 9 % and above, in South Africa 9.5 % and above and in India a whooping 22% and reaching as
high as 48 %.
While interest rates on credit cards are important when choosing a credit card, it should not be the only factor taken into consideration. Credit card
companies that offer low interest rates usually charge higher fees which maybe as costly as or more costly than one with a high interest rate.
In determining what interest rate would be best for you, ask yourself if you will carry a balance or pay the amount in full each month within the grace
period. If you pay the amount on your credit card in full before incurring any interest, the interest rate on your credit card should not matter. However,
if you plan on carrying a balance, determine the maximum interest payment you can comfortably make. With this number shop around for credit cards offering
better rates. If the credit card is the best you can find, after a couple months of building a rapport with the credit card company, call them up and
negotiate a better deal on your credit card.
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