Find The Right One For You
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Easy Tips
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Friday, 27 July 2018
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Credit Tips
While there is no doubt that there are fewer low interest rate offers available now because of the poor economy, there are nevertheless still some quality offers available. By doing your homework and knowing what to look for and where, you will have no trouble finding them. First and foremost, it is important to identify exactly what your needs are as a consumer.
Interest rates come into play when the account holder carries a balance from one billing cycle to the next. If you pay your balance in full each and every month then the interest rate is actually a moot point because there will be no interest charged. The very best way to find low APR credit cards is to use a credit card comparison website. Having the ability to compare low rate offers in a side-by-side fashion is the easiest and most convenient way to see which features and benefits best fit your specific financial needs.
It must be stated that in order to qualify for the lowest rates the applicant must have an excellent credit record. A credit score of 750 and above is considered to be reflective of an individual that is a low credit risk. This excellent credit history will be rewarded with the very best interest rates.
If your credit score happens to fall under 750 then that doesn't necessarily preclude you from qualifying for excellent low APR offers. In fact, depending upon what your credit rating is, your interest rate will be adjusted accordingly. That means that you may or may not have to pay a higher rate.
Many cards feature introductory rates as well. It is not at all uncommon to see a 0% APR for 6 months and sometimes even 12 months. These types of offers are used to attract new customers for the issuer. Oftentimes they will be accompanied with a 0% APR balance transfer as well. It is also very important to pay attention to all fees involved. They come in many forms including annual fees, penalty fees, balance transfer fees and so forth. These types of expenses can quickly eat into any savings that you realize through low interest rates so be sure to find the offers with the most favorable terms.
If you can't qualify for student cards or other thin-file credit cards, I recommend starting with a secured card, which requires you to put down a refundable deposit up front. As lending standards have tightened and "easy credit" has mostly disappeared, secured cards -- originally intended for borrowers with poor credit -- have remained one of the most accessible ways to build credit.
But even though they're usually easy to qualify for, they might not be on your radar. Among people who were new to credit, 56% said they hadn't heard of secured cards, according to a survey from the Center for Financial Services Innovation. Secured credit cards are designed to help you build or rebuild your credit -- that's it. They don't offer much in the way of rewards or low interest rates. Don't look at them as a long-term option.
Instead, look for one that will help you get to where you want to be. Charge no annual or monthly fees. Historically, almost all secured cards came with annual fees. These days, you'll find more no-fee options. Report payment activity to all three credit bureaus. If a secured card issuer doesn't explicitly say it reports to the bureaus, ask.
If the issuer doesn't report your payments, the card won't help you establish a credit history. Have a low deposit requirement. The less money you have to put down up front, the better. 200 or less. Typically, your credit limit will be equal to your deposit. Provide an opportunity to "graduate." After you establish a record of on-time payments, some issuers will return your deposit and transition you to an unsecured card. If that option isn't available, you'll have to close your account in good standing, which could hurt your credit.
Among secured cards from major issuers, the Capital One Secured MasterCard and the Discover it Secured Credit Card offer the best terms and check most of these boxes. Neither charges an annual fee. 200, gives cardholders rewards and a chance to graduate to an unsecured card after a year. For either card, you'll need sufficient income and a bank account to get approved. Once you get a card, you can start building a credit history, but you won't have enough payment data in your name to generate FICO credit scores right away. These will come later, generally after at least one account has been reported for six months.
Many people with bad credit wonder how they would be able to get a new car since it is almost impossible to get a car loan from the bank. Of course there are other financing institutions that might be able to help and although their conditions might not the best ones this is still an option.
Another way round the new car financing maze is to apply for a 0 APR credit card and use it to repair your bad credit, than you can easily apply for a loan. First of all let's explain what is a 0 APR card. APR is a financial term meaning Annual Percentage Rate. The APR is simply the annual interest rate or the interest rate that would be charged to your account over a year. Getting a 0 APR credit card is not that difficult even if you have bad credit history.
When applying for this kind of card be alert as the conditions might not be as sweet as they sound. Most of the banks offer credit cards with no annual interest rate for certain period of time (usually for six months or a year only). Than the agreed annual interest rate comes into effect and it might be huge.
Some banks apply 0 APR for new purchases only or for transferred balances only. Make sure you have read carefully all conditions and charges applicable after the zero APR expires before signing your credit card contract. Than decide what to do with the card in accordance with the terms. If you have 0 APR for purchases only use the card to buy the car.