Despite an historically low Prime Rate, interest rates remain stubbornly high, even for low interest credit card offers. A key reason why credit card interest rates have not declined along with the Prime Rate is the CARD Act. Prior to the CARD Act, credit card companies could raise rates on customers who were considered risky whenever they wanted to. Today, credit card companies cannot raise rates on previous balances or on future purchases unless a customer is well over a month late.
On the one hand, this is good for some consumers. Unfortunately, consumers with good and excellent credit are footing the bill. One area where this is evident is 0% APR credit card offers, which, with a few exceptions, are not as generous as they used to be. A more important area is low long term interest rates. While people with excellent credit can still get rates a point or two above ten percent, most low interest credit cards carry rates in the low-teens for people with good credit and up to 20% for people who just barely meet application criteria.
Low Interest Credit Card Application Tips and Tricks
Secrets of Low Interest Credit Card Applications: As I mentioned above, most credit card companies advertise the lowest available rate, but offer some approved applicants much higher rates. Some credit card companies offer a range of rates that can be anywhere between a high and low number. Others offer what I call a tiered rate structure, where a few credit score points can translate into an interest rate that is 5 percentage points higher than the lowest rate. This article shines a light on these tactics so you know what to look for when you apply.
Secrets of 0% APR Credit Card Applications: The same tricks used by credit card companies to promote low interest rates are also used in the promotion of 0% rates. Some companies are straightforward and deliver the advertised 0% interest rate to all applicants. Others advertise 0% rates for up to 15 months, but may only grant approved applicants a 0% rate for as little as 6 months. This article shows you how to spot this fine print trick.
