Find a 0% Interest Credit Card

Low Rates are Not Extinct for Consumers with Good Credit Ratings

Dec 23, 2008

Although banks are more cautious about how much they lend and to whom they lend, zero percent introductory APRs for balance transfers and rates still exist.

When the Federal Reserve announced impending changes for credit card regulations, many people assumed that banks would do away with the so-called "teaser" rates that attract customers who want to consolidate existing balances or make a big purchase on a low-rate card. That is not happening...yet. The changes do not take place until 2010, and since the Federal Reserve has been consistently lowering its benchmark interest rate, people with the right credit score can find the rates they want.

What Credit Scores Mean

In order to get a low-rate credit card, credit ratings are everything. Income doesn't matter as much as a credit score, because credit scores reflect how a person uses money. A person's credit score is influenced by the following factors:

If a person already has several credit card with high balances or is late paying bills, getting a low rate will be impossible until the balances are paid down and one's credit history is restored by on-time payments. Getting a great rate will be possible, but hard, for someone with a lot of open accounts or someone who has applied for credit several times in the past 12 months, because those are indicators of someone on the verge of a spending spree. Banks are worried about getting paid back, so excellent rates are directly connected to excellent credit.

How to Find a 0% Card

There are several websites that monitor credit card interest rates. Credit Card Guide categorizes cards by deals, zero percent interest rates, and low interest rates. The site has the applications available and clearly states the terms of the card. Although the fine print and details change by offer, some cards that offer consistently low rates include:

Another site that may be helpful is the Capital One Credit Card Lab, which gives some room in building personal terms into cards. Going to any of the company websites and searching for the specific cards listed will bring up current offers available.

It is important to choose the best card the first time, considering the introductory rate, the regular rate, and any card fees, because whenever a person applies for a card, that application is reflected on one's credit report, and affects one's credit score.

The copyright of the article Find a 0% Interest Credit Card in Personal Debt Management is owned by Alex Sharp. Permission to republish Find a 0% Interest Credit Card in print or online must be granted by the author in writing.