Finding the Best Credit Card Applications
Given all the turmoil in the credit card market this year, finding the best credit card applications has become a significantly more difficult process. For starters, many credit card companies have shortened 0% interest rate periods and, despite an historically low Prime Rate, continue to increase long term interest rates. Because of these two factors, it is more important than ever to closely look at the terms offered on any credit card applications you are considering.
The most important factor to look at is the long term interest rate. Most credit card companies offer interest rates that are “as low as x.99%.” Credit cards that advertise rates in this manner offer either a range or three tiers of possible interest rates. For example, one credit card currently offering rates as low as 13.24% only provides that rate to customers with excellent credit. Customers with good credit are charged a rate of 18.24%, and customers who meet approval criteria, but don’t qualify for the first two rates are offered a 23.24% interest rate. Unfortunately, credit card companies do not reveal what your long term rate will be until after you have completed the application and it has been reviewed. Thus, be sure to check your long term rate before you activate your card. If it is too high, apply for a credit card that may provide a lower interest rate.
The second important factor to look for when seeking the best credit cards is the language surrounding the 0% APR offer. For example, some credit cards offer 0% interest rates for up to 12 months, but many only grant these rates for as little as three to six months. Again, you will not find out how long your 0% rate lasts until after your card arrives in the mail, but usually, only the people with great credit get the longest 0% rates.
To avoid unpleasant surprises, it is always wise to wait until your credit card arrives in the mail to transfer balances, as many credit cards offer online balance transfers for up to 12 months, but may approve you, transfer your balances, and then offer you a 0% APR for only six months.
Ultimately, finding the best credit cards takes some detective work. However, by paying attention to the factors noted above, you’ll be one step ahead of the game.