Low APR Credit Cards Guide

How to Get the Lowest Interest Credit Card Rates

Are you wondering how the best credit card deal can help to manage finances more effectively and pay off debt? Find out more about how low APR credit cards work.

A low APR credit card is only available for the very best customers. A July 2008 Consumer Action credit card survey revealed that the average interest rate on an outstanding charge card balances was 13.54%. However, of the 41 banks surveyed, rates varied between 6% and 22.75%. This illustrates the importance of comprehensively checking the entire market for the cheapest credit card rates.

Get Approval for the Lowest Interest Credit Card Rates

Rising levels of default have resulted in an increase in the median interest rate, but it is still possible to qualify for a more competitive deal. This means that approval is far more likely to be granted to those who actively use their charge card, are in stable employment, have a low income to debt ratio and have a reliable repayment history. Financial institutions want profitable customers who won't default.

Remove Credit Report Errors to Get Low APR Credit Card

A history of adverse credit will lead to rejection for anything other than a poor credit card. Whilst it can take years to improve a FICO score, it is possible to improve this within a few months should inaccurate data be held. The Fair Credit Reporting Act 1970 gives someone the right to remove erroneous data. It is important to carry out these corrections several months in advance as a lender cannot tell the difference between inaccurate information and bad credit.

How to Spot a Great Credit Card Deal

It is easier to identify a low APR credit card deal by trawling the entire market for the best deal. There are a number of comparison sites, such as moneysupermarket.com, that will search through hundreds of offers and pinpoint the key features (charges, APR, introductory rates etc) of each product. This makes it easy to determine the best credit card deal. Don't accept the first offer from a high street bank.

Low APR Credit Cards Help with Money Management

The lowest interest credit card rates are particularly beneficial for those who don't settle their full balance at month end. Interest and charges will quickly accrue on standard cards. Approval for the best credit card deal can help to increase disposable income and manage personal finances more effectively. Signing-up to an interest free credit card can also form part of an effective debt elimination strategy.

The Best Credit Card Deal

A low APR credit card deal can save thousands of dollars in interest payments, especially for those who don't clear their balance at month end. Take time to ensure that a credit report doesn't contain inaccurate information and always perform a comprehensive market search to identify the lowest interest credit card. Don't make too many applications for credit as each search will be recorded for a period of 12 months.

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