What are the benefits and requirements for low rate card offers?

Answered on October 18, 2010
Updated on October 18, 2010
The content is accurate at the time of publication and is subject to change.
Amy Miller Amy Miller
Low rate card offers are usually given to credit card customers who have an excellent credit rating or a great credit history. Low rate cards are of two categories. The first is the case where the card offers a very low annual percentage rate and this rate is stable and what will always apply. The only case when the rate could really go up a few notches. However, as per the latest credit card reforms, if a credit card holder pays the bill consistently for the next 6 months the interest rates will come to where they were initially. Given the intense competition amongst credit card issuers to get the customers with good credit rating a lot of incentives are offered and low rates are amongst the most popular amongst those offers. A few credit cards offer further incentives to attract more customers. This includes low introductory rates for a fixed period. A few credit cards offer very low introductory rates during the introductory period, of around 2-3 %. Some credit card issuers offer greater incentives by providing a 0% initial interest rate. There is another distinction too. The introductory interest rate of 0% or slightly higher is available either on just balance transfers or in some cases on both balance transfers as well as on other purchases. This offer is given by credit card issuers to attract customers of other credit cards. The 0% balance transfer is really beneficial for all those who have a high outstanding due and are unable to pay off the debts because of further interest accumulating due to high interest rates. The introductory rates ensure that for the first few months, the credit card customer will have enough time and opportunity to pay off the outstanding balance without worrying too much about the interest rate. Those customers who are offered low rate cards have to be careful about a few things including the fine print. Customers need to ensure that the introductory term period is same as you expect it to be, for it often varies from one customer to another depending on the credit rating. Secondly, although the interest rate on the card could be very low, there could be other charges like the annual fee, balance transfer fee, activation fee etc. which could prove quite expensive. Credit card customers can avail these low card offers to their benefit if they can be careful about all the terms and regulations.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

User Comments about This Question

BROWSE MORE QUESTIONS ABOUT Low Rate Card Offers:

Click here and browse the low rate credit cards we have on offer. Consider 0% intro APRs on purchases and/or balance transfers and be sure to find the credit card right for you.
If your dentist accepts credit cards as a method of payment, there should not be any obstacles. Since you are considering paying for your treatment with a credit card, we would recommend you consider getting a credit card with 0% intro APR and rewards program. Thus, you will be able to save on interest and to earn rewards on card purchases.
The CareCredit cards do not provide any insurance. They are medical credit cards that give access to a line of credit that can only be used at a limited number of providers. If your doctor accepts CareCredit, you may want to take a closer look at this card. However, note that medical cards come with a high go-to interest rates, and promo financing is rather tricky. The promo financing does not give you zero interest, it gives you a differed interest, meaning that if you are late with a single payment or unable to pay off the balance by the end of the promotional period, you will be charged...

Have A Credit Card Question? Ask Our Experts

Help us personalize your results
Your Credit History:
Do you have checking account?
How long have you had a loan or credit card?
Have you ever been declared bankrupt or defaulted on a loan?
Have you been late on any credit card or loan in the last year?
* - marked fields are required to be filled
By submitting your question, you agree to the following:*
Here at BestCreditOffers.com we will answer all questions to the best of our knowledge and understanding, but we are not legally accredited professionals. We assume no liability for actions resulting from our advice and cannot guarantee the accuracy of information in all cases. Please seek appropriate professional or legal advice when needed.
ASK YOUR QUESTION
ASK YOUR QUESTION

LOOKING FOR A CARD?

There is a credit card for any credit and for any purpose. Whether you want to start building your credit from scratch or earn rewards on purchases, save on gas or travel for free, you can find a good credit card offer for that.