It is possible to find the lowest interest credit card through credit card comparison. However, comparison sites may not readily dish out to you whether or not these lowest rates will remain the same in the coming months. There are several reasons why rates change. It pays to know these reasons so that you can look out for them when shopping for credit cards.
Short term applicability is one of the most common reasons for credit card rate changes. This usually applies to introductory rate offers. These intro rates typically last for a period of 3 to 6 months only or up to a year for really great offers. After the given intro period, the lowest interest credit card may turn out to be a very costly one once the regular interest rate is made to apply.
Some rates are also subject to adjustments as per terms and conditions of your credit card. Basis of adjustment may be pegged on your failure to make timely payments, recurring instances of maxing out your credit limit or plainly discretionary on your credit card provider as long as you are informed of any changes that they intend to impose.
Also look out for asterisks following the lowest rate offers. This means that there are conditions that you need to comply with first before these rates will apply. Some of these conditions can be met by special clients, such as those with excellent credit rating only.
Finally, check out hidden costs. It is possible that some hidden fees are placed to offset your credit card provider’s lost revenues on interest rates. So, make an extensive inquiry on applicable rates and charges as well as hidden charges from your provider; if possible, request for affirmation that your account will not incur hidden costs to avoid dealing with it later once they pop up unannounced on your statements.
Make sure to read and understand the terms and conditions of your lowest interest credit card. The fine print may be a pain to read but knowing what is stated there may save you hundreds of dollars in fees later.
