Compare Credit Card Interest Rates
A credit cards interest rate may be an important factor if you regularly carry a balance. A balance is the amount of money you owe on your credit card. The higher the interest rate, the more interest you’ll pay on an outstanding balance. A lower interest rate card may save you money over time.
The interest rate may not be an important factor in choosing a credit card if you:
- pay your balance in full every month
- dont take out cash advances or make cash-like transactions
There are many credit cards with low interest rates available. Some low rate cards charge an annual fee. Even if there is a fee, a low rate card may be a better option.
What Do You Want To Use Your Card For
When choosing a credit card, its important to consider what you actually want to use the card for. Do you want to keep it in your wallet for emergencies? Do you want to make your dollar go further by collecting rewards points? Do you have an existing non-Westpac credit card and would like to transfer your balance? Or do you just want the freedom of having credit when you need it? Your behaviours will help you nut out the type of card that will work best for you.
Taking Stock Of Your Finances
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What To Consider Before Getting A Low
Eligibility requirements: As of May 2021, the average APR for cards that accrued interest was 16.30%, according to the Federal Reserve. But there are cards that feature lower APRs and that can save you money on interest. These cards are typically offered by and regional banks. Not everyone will be eligible for such cards, however, because you’ll have to meet certain membership and location requirements to apply. The Lake Michigan Credit Union Prime Platinum Card, for example, features the following interest rate: The ongoing APR is 6.25% Variable. You must join Lake Michigan Credit Union to be eligible for the card.
Credit score: The interest rate youre charged on a credit card typically depends on your credit score. So without good or excellent credit , you generally won’t be able to qualify for a cards lowest interest rate. If you have less than average credit, consider opting for credit-building options like a secured card or an alternative credit card that use nontraditional underwriting measures to assess credit.
Fees: After you’ve missed multiple payments, some cards charge penalty APRs, which is a high-interest rate, sometimes as much as double your regular rate. A penalty APR will apply to both previous balances and new charges and may remain on your card for up to six months. Before picking a card, make sure youre aware of the terms and conditions surrounding its penalty APR. And if youve incurred one, try to pay the minimum amount due, as soon as you are able.
Things You Might Miss If You Don’t Read Carefully
Look carefully in the fine print for things such as these:
The right to raise your APR at “any time for any reason.”
Universal default, in which the card can raise your APR if you make a late payment on some unrelated card or loan. Phrases like “defaults to other creditors” will tip you to this.
Other fees beyond the ones most people are familiar with.
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Improve Your Credit Score
If you want to know how to choose a credit card because you have a low credit score or no credit history yet, then are a good place to start. Many of these are secured credit cards, which you open by paying a deposit to the credit card company. If you’re in college, student credit cards are another option.
Do: Take The Time To Understand Your Credit History
Depending on your credit score and history, you may qualify for lower APRs and higher credit limits. Woot! If you have questions about credit cards, or want to talk about ways to improve your credit score, schedule an appointment with a Summit financial expert. They can help you understand the basics and give you tips for managing your credit card.
If Youve Applied For Credit Cards Before
Applying for too many cards or regularly switching cards can affect your credit rating. Each time you make an application its recorded on your credit file. Your file will also show if an application is refused. When new providers check your credit file, it can look like you have lots of cards already or that no one else wants to lend to you.
If youre struggling to pay what you owe on a credit card, find out how to deal with the debt.
How To Choose The Right Credit Card
Eric is a duly licensed Independent Insurance Broker licensed in Life, Health, Property, and Casualty insurance. He has worked more than 13 years in both public and private accounting jobs and more than four years licensed as an insurance producer. His background in tax accounting has served as a solid base supporting his current book of business.
Before you choose a credit card, get the answers to a few key questions. The answers to most of these questions can be found in the disclosure included with the credit card application.
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Earn Rewards On Purchases
Rewards credit cards are a popular answer when consumers ask themselves, “What is the best credit card for me?” These cards allow you to earn rewards on your spending. If you want to earn cash rewards, you should look at cash back credit cards. For points you can redeem toward travel, check out travel rewards credit cards.
Variants Of The Credit Card Launched By Federal Bank
Federal Bank has partnered with Visa to issue three new variants of credit cards to its existing customers. The three variants are Imperio, Celesta and Signet, each catering to a different set of customers. The Imperio card is designed for family-centric customers, Celesta card is designed for the High Net-worth Individuals and Signet is designed for young professionals.
The bank will be offering the cards at the lowest dynamic Annual Percentage Rate starting from 0.49% per month . The move aligns with the bank’s strategy for improving its unsecured, yet high-yielding book. The bank is adopting a digital method and making the card available via a three-click approach. The bank will make the cards available instantly for use on FedMobile, the bank’s mobile application, and will get physically delivered in due course of time.
06 September 2021
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Benefits Of A Credit Card
One of the benefits of a credit card is the purchase protection.
Under Section 75 of the Consumer Credit Act, a credit card provider is jointly responsible for any breach of contract or misrepresentation by a retailer or service provider.
That means if a product is faulty and the retailer refuses to offer a refund, or if a service provider breaches their contract or goes bust, you can apply for a refund via your credit card provider.
This has been especially helpful during the pandemic, when businesses have gone bust or have refused refunds where they were due.
Section 75 covers purchases of between £100 and £30,000 even if youve only made a portion of the payment using your credit card and you can claim against a card provider you no longer use.
A couple of years ago I managed to claim a partial refund for my season ticket from Thames Clippers because they were perpetually late, had agreed to refund me but then ghosted me.
I had to show proof of a breach of contract and it took a couple of weeks for them to investigate so its certainly not as simple as clicking a button but it was much easier than the months of back and forth I had already gone through.
Thats something worth bearing in mind: you should always approach the vendor for redress first and a Section 75 claim should be your last resort.
With a debit card, once the money has gone out of your account, it may be months before you get it back, if at all.
Other Factors To Consider
Before you apply for a rewards credit card it may be a good idea to find out the answers to these questions:
- How do the rewards add up? Consider how many points you earn for a dollar and how many you need to get a reward. Check to see how many points you can earn each year and how quickly those points expire. It usually pays to do some research.
- How easy is it to get the reward? Many cash rewards programs reward you automatically as soon as youve spent enough to qualify. With others, you can redeem your rewards online or by phone whenever you choose. Its a good idea to check out how user-friendly a card companys website is before you apply.
- Is there a catch? Rewards credit cards may charge an annual fee or have higher interest rates than other cards. There may also be a fee to redeem your points or shipping fees to deliver merchandise rewards. A great program may be worth the extra cost, but make sure you know all the details up front.
- What about late payments? Late or missed payments can affect your ability to earn or redeem points or remove your rewards balance completely. Some issuers charge a fee to reinstate rewards points when a payment is late after a certain number of days.
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Set A Credit Limit You Can Afford
When you apply for a credit card, your bank or credit provider will offer you a credit limit. This is the maximum amount they’ll lend you, and it is based on your ability to pay it back within three years.
If you’re worried about overspending, you don’t have to take the full amount offered. Think about your spending habits and how much you can comfortably afford to pay back.
Be Careful When Applying For A Secured Card From An Unknown Financial Institution
In particular, beware of secured card offers from issuers outside Canada. If you have problems with the companys services, it may be more difficult to resolve them.
A secured credit card requires that you provide a security deposit to the financial institution that issues the credit card.
Your credit limit is normally set as a percentage that is equal to or higher than your deposit. Depending on the credit limit you request, the security deposit may range from a few hundred to a few thousand dollars.
If you don’t make your payments, the financial institution may use your deposit to pay the money you owe.
You may want to consider a secured credit card if you:
- are a newcomer to Canada and have no credit history
- have filed for bankruptcy in the past
- want to rebuild your credit score after past credit problems
To build your credit history or improve your credit score, make all your payments on time.
Secured cards without a recognized brand name such as VISA, MasterCard or American Express may have limited uses. Only a small number of stores may accept such cards. Or, you may be limited to making purchases from a specific location.
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Pine Labs And Onecard Announce Partnership
Pine Labs has partnered with OneCard to provide an extension in EMIs for OneCard credit card holders. OneCard is the countryâs first mobile-based credit card, while Pine Labs is a merchant commercial platform. Under the partnership, individuals can avail EMIs in the case of high-value purchases at Pine Labs PoS terminals across India. Pine Labs is targeting tech-savvy individuals that have opted for the OneCard. Individuals who make a purchase of more than Rs.2.7 lakh can convert the transaction into EMIs. Apart from India, Pine Labs has also started EMI payments in Malaysia.
14 September 2021
Identify Which Type Of Credit Card You Need
There are three general types of credit cards:
Cards that help you improve your credit when it’s limited or damaged.
Cards that save you money on interest.
Cards that earn rewards.
The best card for you is one with features designed to meet your specific needs. If you don’t travel much, for example, then the best travel card in the world isn’t going to do you a lot of good.
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Want To Earn Rewards On Side Hustle Expenses Apply For A Small Business Card
You dont have to have a Fortune 500 company or even a physical office location in order to qualify for a small business credit card. If you have a side hustle selling on Etsy or a freelance gig, you can still apply. Business credit cards offer categories that personal cards do not often come with, such as office supplies or internet services. Plus, a small business card is a great way to keep your personal and business expenses separate when it comes time to do your taxes.
There is a business card out there for pretty much anyone and everyone, no matter what type of business you have. One great all-around business card is the Ink Business Preferred Credit Card, which offers 3x Ultimate Rewards points on the first $150,000 spent in assorted business categories each month while only charging a $95 annual fee each year. You can also find flat-rate business credit cards that earn rewards across all expenses, such as the Ink Business Unlimited Credit Card, which comes with 1.5% on all purchases.
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South Indian Bank Launch New Credit Card In Association Onecard
South Indian Bank has launched a new credit card in the market. The card which is a premium metal card has been launched in association with OneCard. Named as SIB â OneCard credit card, it has a unique app-based onboarding process, which is in line with the bankâs vision of digital transformation. Valid internationally, the card is on the Visa Signature platform and can be fully controlled through the OneCard app. The SIB â OneCard is laced with exciting features such as lifetime validity with zero joining and annual fee, 100 percent digital customer onboarding process, instant virtual card issuance, instant issuance of reward points and easy redemption within the app.
09 September 2021
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Summary Of Choosing A Credit Card
On one hand, it’s good to have a few cards, perhaps one from a bank or credit union and perhaps a store card. You want to build up a good credit history so you can qualify for things like mortgages or business loans in the future. But having too much open credit can harm your credit score because you will be perceived as undisciplined or reckless.
This content was created in partnership with the Financial Fitness Group, a leading e-learning provider of FINRA compliant financial wellness solutions that help improve financial literacy.
Read more information and tips in our section
% Interest Credit Cards
0% interest credit cards are quite similar to balance transfer credit cards and theyre often combined into one.
You get 0% interest rate for the duration of an introductory period, which means you can have an outstanding balance without being charged for it.
On a normal credit card, interest is applied to any outstanding balance thats unpaid when due but if you pay the balance in full then theres no interest to pay.
A 0% card is particularly useful for buying a big ticket item where you might need a couple of months to pay it off in full like a new kitchen, for example.
Some people also use it to save money. So instead of paying off the balance each month, they would put that money in a savings account to accrue interest.
You still have to repay a portion of your debt each month, and the amount will vary from person to person based on their credit score.
After the introductory period, interest will be applied to any outstanding balance so make sure you clear your debt before then.
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Disadvantages Of A Credit Card
Of course, every financial product has some drawbacks, and credit cards are no exception.
Here are some of the disadvantages to keep in mind when considering opening a credit card. Depending on your use of a credit card, a flaw could be that you are only required flaw of a credit card is that you are only required to make a minimum payment each month. If you only make the minimum payments, it can be a slippery slope towards mounting credit card debt.
With the high interest rates often associated with credit cards, it is all too easy to allow your credit card debt to mount rapidly. Additionally, a growing credit card balance can negatively impact your credit scores.
Finally, the fees associated with a credit card can add up quickly.