Whether you are establishing your credit history, or if you have already established credit and seeking lower interest rates, there are many low-interest credit cards in the market. Before applying, it is crucial to know the pros and cons of each credit card as well as your credit rating or FICO score.
Enticing new customers is not easy in this competitive industry, and many companies offer additional incentives including cash back, no or low annual fees, as well as interest-free balance transfers along with no interest on purchases for a certain period of time. If you are one of the few people that have no idea what your credit rating is, no need to fret, there are many ways to obtain your free credit report. FreeCreditReport.com and Credit Karma are a few popular sites with free registration and no monthly fee, in addition to credit monitoring to avoid identity theft and tools to help you make your next important financial decision. The registration process is quick and easy, then you will have the ability to view your credit report instantly and anytime with internet access. Below are a few of the most popular low-interest credit cards that offer the best benefits.
Wells Fargo Platinum Visa Card
Trying to get out of debt or have an expensive purchase in mind and want to avoid paying interest? If that describes your financial quandary, the Wells Fargo Platinum Visa is the ideal card for you. With 0% interest on balance transfers and purchases for 18 months, there is ample time to pay off those hefty purchases before the introductory period expires.In addition, if you use this credit card to pay your monthly cell phone bill, there is the added security against damages and theft protection up to $600 with a mere $25 deductible. With the assurance of no annual fee, the benefits just keep piling up.
If you are looking specifically for a card with balance transfers in mind, then the Discover it with 18-month balance transfer offer was designed for you. The card boasts of 18 months with 0% interest on balance transfers and six months no interest for new purchases. Unfortunately, there are a few fees including 3% on balance transfers and annual interest rates ranging from 11.99% to 23.99% after the introductory period.However, there is the added incentive of earning 5% cash back in rotating categories, 1% on other purchases, and no annual fee. Even better, the card also matches cash back earned each dollar per dollar the first year.
Citi Double Cash Card
This is yet another card designed for balance transfers for those wanting to erase their high-interest debt. With 0% APR for 18 months on balance transfers, 1% cash back on all purchase, and no annual fee, the Citi Double Cash Card is for those with less than perfect credit.
What Are My Chances of Approval?
Although the credit approval process is quite complex if you have a strong credit score your odds of being approved quickly increase. Credit scores range from 300 to 850, the higher the score the better the chances of approval and vice-versa. Other important factors include debt to income ratio, length of credit history, and on-time versus missed and past due payments. Remember, each time you apply for a new card it is reported to the credit bureau as a hard inquiry, which may negatively impact your score. Make an educated decision before applying for a new card to improve the likelihood of approval and ensure less impact to your credit score.