When searching for a credit card, comparison shopping is highly recommended. The credit card industry has so many different types of credit cards in the market, each coming with its own attractive features, and not-so-attractive features thereof, to different people depending on their credit card needs.
Getting a credit card is just like getting a personal loan or a mortgage loan; you don’t just go for the first offer that comes your way. Important things to look at when comparing credit cards include a high credit limit, a low APR (Annual Percentage Rate) and significantly low, or no fees at all. These are some of the special rewards or offers that you will get from different credit card packages.
A low cost credit card is one that has the lowest possible APR or some sort of reward program that will at least recover some of your money. It isn’t uncommon to find reward credit cards that offer rewards or redeemable points that can be used in hotels, gasoline, airline bookings or traveling.
There are generally three types of low cost credit cards available in the market today – credit cards that have a 0% introductory offer for a set duration of time, there are credit cards that have a low interest rate but fixed and there are those that have a variable low interest rate.
For you to be able to get a low cost credit card, you need to have a very good credit history and a clean credit report. The only way you can have a low interest rate credit card is by having a strong credit score in the sense that the lower the risk you are to credit card companies, the lower the rate of interest you will be rewarded with. You need to be creditworthy and only low-risk people can be assured of the best and lowest rates in the market.
While this type of credit card can be very attractive to many people thanks to the unbelievably low interest rate, remember it is an introductory offer, once the introductory period expires, which will normally last between 6 and 12 months, the cards rates will revert to normal, and normal here could be significantly high interest rates.
As for the remaining two types of credit cards, the one with the fixed rate is the more attractive of the two since you can at least cushion yourself with a fixed rate against sudden fluctuation of interest rates.