Frequently Asked Questions
When is a low interest credit card better than a rewards credit card?
A low interest credit card is better for you if you usually carry a balance from month to month. With the high interest rates that accompany rewards credit cards, it is better to avoid carrying a balance on them.
Also, you can transfer the balance from a high interest credit card to a low interest credit card to reduce the amount of interest that you pay for keep a balance.
How can I guarantee the lowest APR possible on a credit card?
Every credit card has a specific APR range for its cardholders. Your credit history will play a major role in the interest rate that you get on your credit card. The better your credit, the lower the interest rate.
By exhibiting responsible management of your credit and loans, you’re more likely to secure a lower APR when you apply for a credit card. But even after you’ve qualified for a low interest credit card, you may have luck asking for an APR reduction if you’ve had your credit card for at least six months.
Can a low interest credit card help with debt consolidation?
Definitely. It may appear contradictory to open a new credit card for the purpose of debt consolidation, but it works for many people.
If you are approved for a low interest credit card, you can transfer the balances from your other credit cards to the low interest card. You may end up paying much less in interest over the long term. However, there’s also balance transfer fees to consider.
* This information is provided through a relationship with CreditKarma.com. Credit Karma members have received approvals with these TransUnion New Account credit scores. Please note that because other factors may affect credit card approval, these approval metrics are only guidelines and approval is not guaranteed.