ANSWERS: 1
  • A good rate for a credit card depends on your own situation. For some people, a rate of 12 percent is good and for someone else 8 percent is good. If you cannot get approved for a credit card, you may think any rate is good.

    Significance

    The annual percentage rate for credit cards can vary from company to company. It's always a good idea to get the lowest rate you can. When you use your card, you are charged less finance charges.

    Considerations

    A good interest rate on a credit card can be looked at relatively. If you have a credit card that has an APR of 19 percent and you can get a different card at a rate of 15 percent, the lower rate becomes a good rate if that's the best rate you can get.

    Promotional Rate

    The best rate you can probably get is 0 percent on a credit card. A rate this low is usually a promotional or introductory rate for a specific period of time such as six months or one year. You may want to consider what the rate offered is after the promotional rate expires.

    Potential

    Always match interest rates with your own credit history or situation. There are websites that will let you apply for credit cards based on your credit. If you have excellent credit, there is one set of cards you can apply for. Someone with good credit is allowed to apply for credit cards based on individuals with good credit.

    Rates

    Realistically, the best rate you can get, based on your own situation, is a good rate. Credit card interest rates can range from 7 percent to as high as 35 percent, give or take a basis point.

    Misconceptions

    If you pay your purchase balance in full every month, you will not be charged finance charges therefore the interest rate won't matter. However, if you take out a cash advance, you will be charged interest from the day you take out the advance until you pay off the balance.

    Source:

    CreditCards.com

    Creditcardguide.com

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