Credit Card Fees and Interest Rates

You open your credit card bill and you see that the bank has increased your finance charge. You're concerned, but you're not even clear on how the charge is calculated. How do they do it? This article reveals the secrets behind credit card finance charges.

Today in the United States 640 million credit cards are in circulation. That's two for every man, woman, and child. The average American adult has four credit cards, representing an increase from 3.2 cards each in 2004. On average, 40% of Americans pay their bill each month while 60% carry a balance. Based upon Federal Reserve figures, total U.S. credit card balances are $800 billion.

A credit card is basically a short-term loan from a bank to the card user. Banks are in business to make a profit, and credit cards have traditionally been very profitable. Aside from membership or annual fees, banks make money on cards by charging interest. The interest rate is represented by a percentage of the principal owed, and is calculated periodically. The result is the finance charge that appears on the cardholder's monthly bill.

The Annual Percentage Rate (APR) can vary greatly among different cards. Currently, APRs average 14.41% for cards with rewards, and can go as low as 8.9% and as high as 36%. There is no federal limit on the interest rate a bank can charge.

How do lenders calculate finance charges? Finance charges are calculated by applying a Periodic Interest Rate to the outstanding balance of the account. Because the balance changes every time a customer makes a purchase or sends in a payment, there are many methods that banks use to calculate average balances. The periodic rate is calculated by dividing the annual percentage rate (APR) by the number of billing periods in a year, which are generally twelve. An APR of 21% would convert to a periodic rate of 1.75% (21 divided by 12 = 1.75) per billing period when finance charges are calculated monthly. The periodic interest rate is then multiplied by the balance to determine the dollar amount of the finance charge.

The balance can be computed in a variety of ways. Say a customer has a balance of $3,000 at the end of the month on a card with an APR of 22.5%. If the bank used a simple end-of-month calculation the interest charge would be $3,000 x 1.875% = $56.25. This means that aside from other charges and fees, the customer will pay the bank $56.25 on the $3,000 that he or she has borrowed during the month.

How can you lower your interest rate? The best way is to be a good credit risk. Card issuers have recently begun to calculate a customer's interest rate not only on the customer's history with the company, but also the customer's overall credit rating. This practice is called the "universal default" clause, and it's becoming a standard clause in credit card contracts. Even if you make your payments on time, the card issuer can raise your interest rate if you're late on payments elsewhere. If your payments are late with another credit card company or  with your phone, car, or house payment, the bank can raise your rate.

Your credit score--known as a FICO score-is critical to determining how much you can borrow. It is a major factor in determining the interest rate you pay on a credit card. Your bank can hit you with expensive fees, too. In 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted restrictions on late penalty fees. Consequently, there is virtually no limit on the amount a card issuer can charge a cardholder for being even an hour late with a payment. You have nothing to lose if you call your bank and ask for a lower rate. Always read the fine print on your credit card agreement. Above all, whatever rate you have, never charge more than you can pay off in full each month.  


Credit Card Comparison - Quickly Find the Most Attractive Offers

The financial market is overflowing with a wide array of credit card products, all of which have their own ways of attracting customers. This is why shopping around is a crucial step to get the best deal and to save money on interests and fees. If you do not have any idea where to begin your credit card comparison, you will find these tips helpful.

1. Study the APR

APR or the Annual Percentage Rate is the interest stated as a yearly rate. The obvious better choice would be cards that offer low APR, however do not forget to consider other costs and fees as well.

2. Compare Interest Rates

Different companies offer different rates so it is important to study your options well. Be careful of companies that offer zero or low interest introductory rates because some of them charge overpriced rates once the interest kicks in.

3. Evaluate the Fees

This is also a crucial step in comparing credit cards since we all know that companies charge different fees. Some of the common fees to compare include (but are not limited to) annual fee, cash advance fee, balance-transfer fee (some instant approval balance transfer credit cards may charge this fee), penalty charges for late payment or for going over credit limit, and set-up fee. Do not forget to inquire about any other charges that may be included in your card.

4. Consider How Finance Charges Are Calculated

There are three methods of calculating finance charges: average daily balance method, adjusted balance method and the previous balance method. It is very important to factor this in your card comparison since each of this method results in a different outcome.

The average daily balance method, the most commonly used, is calculated on the basis of the average amount owed in the last billing period. The adjusted balance method calculates the balance by subtracting the payments and refund credits from the balance owed last month. It is wise move to go for cards that use this method because it produces the lowest finance charges and are therefore the most advantageous for the consumer. The previous balance method computes the balance owed from last month's billing without including payments or new purchases made in the current billing. This results in expensive finance charges and should be avoided.

5. Inquire About Grace Period

The grace period is the number of days that you can enjoy as finance charge free. Consider this when you compare credit card offers and avoid those that do not have such a period.

6. Know the Credit Limit

This is the maximum amount you can charge on your credit card. When getting a card, it is a must that you find one that offers a credit limit suitable for your needs and ability to make repayments.

7. Compare Additional Features Offered

Several companies offer special features such as rebates, airline miles, phone call minutes, insurance, and warranty coverage for items purchased. When comparing credit cards, consider only the features you think will be useful for you. Stay away from cards that would require you to pay for these additional features.

8. Go Online to Compare

Some websites offer credit card comparison services and it's a good idea to check them out. The Internet is a very good place to look for credit cards. In fact, many companies have online approval credit card application that is very convenient.

Once you have gathered all these necessary information about the credit cards you are eyeing for, an easy and effective way of comparing all these is by tabulating them in a work sheet so you can see side by side which credit card offer the best values.


How to Use a Business Credit Card

We all know what business credit card is and what its uses are and what all credit cards are available. But still we do not know how to use these business credit cards. Let's see how it all works.

It happens that we have to face certain routine payments in our daily life. With the help of a credit card we can over come these draw backs.

When you talk about travel, we require to provide a credit card number to uncertainties when booking a hotel or a flight and if the booking on line or by telephone you will have to pay for the services with a credit card. It makes easy for us and it saves our precious time. Even if we have extra money in our hands it will not give hand in time of emergency so it is better to have credit card with us mainly for emergency. This is always in the best while traveling.


How secure is the credit card system? The answer is that if you have money in your hand you may loose it or it may be stolen. But if the credit card is stolen it is simple you make a call to your credit card company and a freeze it, so that nobody can misuse it.


There is two accounts one is regular bank account and the other is merchant account. This is the account that processes your credit card which you receive.

The credit card process is an go-between between eCOMpal and dissimilar banks that work with them. The credit card process also make available the "plumbing" that will allow your customer's in order to run from eCOMpal to the store that is hosting your merchant account. It also works with the store that issues your clientele credit card to verify the account and accept or decline the transaction.

When the client checks the eCOMpal, by entering the credit card number we exchange a few words with the credit card companies process The credit card process figures out what bank issued the card and calls it electronically to ask if the credit card is alright . The issuing bank will look into the account and sends a Yes or No to the credit card processor. When it receives response the shopping cart tells the response and continues the processing.


This is all done electronically; Your merchant account now has the funds from each of your customers' purchases. Different merchant account banks work with different credit card processors.


3 Pitfalls of Balance Transfer Credit Cards

If you've got the choice of paying interest or not paying interest, it seems the choice is obvious: don't pay the interest! That's the promise that balance transfer credit cards make. But do they deliver? That depends on how you handle them.

Balance transfer credit cards are designed for card holders who want to transfer a balance from another card. The idea is that high-interest balances can be switched to a low- or no-interest card, making it easier for the card holder to pay them off.

But it's not always that simple. Some cards come with hidden fees and stiff penalties. Plus, once the low-interest phase has expired, the interest rate might jump higher than the rates on previous cards. To keep costly interest at bay, here are three mistakes you should avoid when using a balance transfer credit card.

Mistake #1: Don't read the fine print.

Every credit card sounds like a good deal when it's being marketed to you. The terms might appear less impressive when you read the cardholder agreement for yourself. Always trust the written word over a silver-tongued sales pitch. Otherwise, you might find that hidden fees sink the value of your chosen card. Pay close attention to balance transfer fees, since these will apply every time you transfer a balance to the new card.

Mistake #2: Don't make payments on time.

Many balance transfer cards require you to make timely payments. If you don't, your purchases will be subject to interest. Worse, that interest will qualify as penalty interest, and could be as high as 30%! To take advantage of the entire 0% interest period, make your payments in full and on time.

Mistake #3: Don't pay off your balance within the designated timeframe.

If you sign up for a balance transfer card that offers 0% interest for one year, be sure you can pay off your transferred balance within that year. It won't benefit you to let your balance linger until the card issuer starts applying interest to it. You could even find yourself paying a higher interest rate than you were paying previously. Knock out your balance within the given time period, and you'll be able to apply all of your payments to the principle rather than the interest.

When used correctly, balance transfer cards can help you whittle away your debt by removing interest from the equation. Use them poorly, however, and you'll do away with any benefit you might have received from such cards.


Citgo Credit Card Gas Rebates Reviewed - How Does it Stack Up to the Rest?

Millions of Americans are facing pain at the pump with the average cost per gallon of gas at $3.50 at the time of this writing. Many families are finding that a monthly gas bill of over $500 is a reality that must be dealt with.

The question that comes to mind when one notices the application for the Citgo card while standing in front of the pump helplessly watching the fuel pump display approach triple digits is how well does this gas card compare with the gas credit cards offered by the big guys?

There are generally advantages to each side, whether you choose to go with a gas station credit card, or one that offers rewards for purchases at any gas stations. The best way to get an idea of how good a credit card rewards program is, is to simply do a one on one comparison with its main competitors.

Citgo Plus Card vs. Discover Open Road Card

  • Gas Rewards - The Citgo credit card will give you 15% cash back (with a limit of only $50) on your Citgo gasoline purchases for the first 90 days, and that's it. The Discover Open Road credit card is offering 5% cash back on gasoline purchases made at any gas station, as well as 1% back on purchases made anywhere else. There is no introductory period, and there is no cap to how much you can accumulate with the Discover card.

  • APR - The Citgo credit card is offering a rate of 19.99%, while the Discover Open Road credit card offers a standard purchase APR of 10.99% (after 12 months of 0% interest on balance transfers and 6 months of 0% interest on purchases)

  • Fees - Neither of these cards have an annual fee.
Several consumers can benefit by using a gas credit card for their fuel purchases rather than other methods simply by cashing in on the rewards that are being offered. If a family with a monthly gas expense of $500 were to use a credit card that provided 5% cash back, they would be looking at getting a rebate of $25 each month, and that doesn't include other purchases.

This 5% rebate may not seem very lucrative, but if you were to just plan on spending $500 a month on gas, and then withdraw your reward at the end of the year in December, you would a have an extra $300 to spend on holiday gifts.... and I can't think of a person alive that would turn down an extra $300.


Business Credit Cards - Handle Unexpected Expenses in Business

To ease the monetary problems faced in businesses the business credit cards are the best thing. It provides instant monetary support in buying things for the business purposes. Such cards have a higher line of credit than the consumer credit cards. These are mostly ideal for handling the unexpected expenses arising in the businesses.

For those using a single credit card maintaining a proper data of the expenses of their company becomes easier. Certain credit card providers are even there who maintains and categorizes all the business expenses of a particular company. It helps in calculating the company tax and reviewing the initial business plan.

Such credit cards are generally offered in the moment you open a company account. A bevy of credit card agencies will be there but to choose the best one you must take certain necessary steps. You must manage some time to research and choose the right credit card. Certain criteria that you should look for in the credit card are: no annual fee, low rate of interest and credit cards with rewards. Annual fees are generally unnecessary as you already keep paying rate of interest after making purchases through these cards. Hence you should look for a card with no annual fee. Moreover, the rate of interest should be low so that it does not become a burden for you while paying it each month.

Credit cards with reward should be tried mostly to be adopted as the benefits of going for these are a lot. Several bonuses offered by these cards prove to be very helpful to small business and companies, such as airline travel rewards. These cards prove to be helpful for cost of flights, car rentals, hotel reservations, and much more. However, some other business credit cards are there that provides money back provisions. But certain other criteria will be there that you must agree with. These are like higher annual fee or higher rate of interest.


Secured Credit Cards - Things You Should Know

Few people believe they know the whole thing about the secured credit cards. When you send in the deposit, you may get credit card. Prior to you go and jump in secured credit card race, there are some things that you must know.

You have to pay

Think you are entitled to low interest rate card just because you are giving security deposit? Rate of 5 or 6 % is dancing on your head, you would think twice. Interest rates of the secured cards are equal to the unsecured cards, & how much you will pay will depend on the damaged of your credit.

In reality, a few secured credit cards compel processing charges & annual fees besides high interest rates. Prior to applying for secured card, you need to compare the rates cautiously and understand exactly what you will be charged. Something in the excess of 20 % interest or $100 yearly fee is usually too much.

Behavior Does Pay

Imagine secured credit card is only an means to end? You make use of it for 6 to 12 months and after that get rid? Some cards are intended to be in that way, however a few secured credit cards will grow with you.

If you want secured card, then look for one, which offers increasing credit limit and good payment history, better yet, one, which transitions in unsecured card after some time. Since length of the creditor relations has impact on the credit rating, it is good to look for credit cards that you will keep for long haul.

Secured cards are not like the Prepaid Cards

If you considered foregoing secured card & selecting for prepaid credit card, as initial asset is less, then you have to think again. The secured credit cards account to credit bureaus & work to get better your credit card rating. The prepaid credit cards will not. In actual fact, few places that accept the secured cards might not accept the prepaid cards, like car rental facilities & hotels.

World of cards can be very confusing, there are a few fixed notions about different kinds of credit cards. Do not let rumors that you have heard or misinformation that you have got about the secured cards lead you off track from making sound choice to which credit card is good for you.

Advantages of Secured Credit Card

Besides saving money by getting secured credit card, you can as well get back the money, in form of the deposit. Just make sure you follow your payment contract with company, as well as evade defaulting on account. In addition, by establishing the credit with top credit corporation, you will improve your chance of getting offered unsecured credit card afterwards. You can see, if you are paying off the dues dutifully, you are building very good credit history. The credit score will improve each time when positive payment is reported to all major credit card bureaus.


The Ups and Downs With Low APR Credit Cards

The low interest credit cards are equivalent to the cheap credit cards that are considered as most famous credit cards due to 0% introductory annual percentage rate. This offer may last 12 months. If you plan to pay full balance off prior to 0% then intro offer expires, and then this tender can be ideal state. If you are carrying balance every month, then low fixed annual percentage rate interest rate may be better option. Selecting 0% intro rate might be the mistake suppose it changes to the high interest charge after promotional offer get expires. This is a cause why it is important to understand what interest rate is after introductory period get expires. The customers who make a decision to go with promotional offer then they can make use of money saved on the interest cost to speed up paying off loan much faster.

The low interest credit cards usually come with the high transfer rates & fees or else interest rates that are higher the prime rate after introductory time. The cash withdrawals might as well have the higher fees. You need to read terms and conditions very carefully. Check all fees & future interest charge prior to signing up. In order to make best use of low interest card, you must make big purchases by using it & pay off balance at time of introductory period. You may finish up paying small interest charge but it will be good than taking store credit for high interest charge. If you have 0% INTEREST rate offer, then you are paying nothing for whole introductory period. By using low interest credit card elegantly during introductory period will definitely assist you save money on large purchases.

What are conditions in order to maintain very low interest?

Even if introductory rate can extend for period of three months to year, interest rate can be hiked rate much superior than prime rate at time of this period. This is usually done seeing you miss out any monthly sum or if you go beyond your credit limit. In order to use benefits of low interest card to maximum, do not let the above situations happen.

Pros & Cons for switching the credit cards

In order to take benefit of low interest cards lots of people switch to credit cards that are rolling on their balances to new ones to keep the interest rates low. And this will absolutely save you money & work your advantage. But switching credit cards may be long process & frequent switching may reflect very badly on your report. Usually you must keep a few long rank accounts with the prime or else low interest charges after introductory period when you switch to other cards.

If you are besieged with the bills and the credit card debts, then why not combine your loans in 1 loan. This can save enormous sum of money on the interest cost. It cam make monthly expenditure more convenient and will alleviate financial problems, which come with having much credit that you cannot afford. This is excellent chance to start process of getting better your credit rank.


A Brief Guide to Finding the Best Credit Card

You need a credit card, but determining which credit card offers are for the best credit cards you can get requires some understanding of the business. Credit cards come with a variety of options, which means some credit cards are not very good deals for you; you'll have to do some research to find the best ones.

One of the quickest and easiest of ways to find the best credit card deals is to do a search for them online. However, before you apply for what looks like the best credit card for you, take a careful look at the company offering the card and its contract terms.

Low Interest Rates

The interest rate is usually the first thing most people look at when applying for a credit card online or offline. However, the credit card interest rate really isn't of primary importance for those who pay off their balances every month. If you have a tendency to get behind and pay only the minimums on credit cards for extended periods, the best credit cards for you are the ones with the lowest interest rates.

A large portion of credit card owners pay huge sums of interest to credit card companies each year. Each percentage point of interest can have a major compounding effect over time, although if you just pay interest for one or two months out of the year, differences in interest rates will not be so major. So the more likely you are to carry balances on your credit cards for long periods, the more crucial the interest rate is in determining the best credit card for you.

Rewards Programs

The next consideration most people make is the reward programs being offered by issuers for the major types of credit cards. Mastercard and Visa credit cards typically come with rewards programs. These programs entail special privileges such as cash back, frequent flier miles, and credit towards various purchases in exchange for using the cards at certain stores or signing up for special offers.

If you use your credit card very often or in any particular way, a rewards program can very quickly add up to be big rewards with some of the best credit cards. However, you usually have to be good at making your payments to qualify for the best credit card rewards programs.

Member Benefits

Many people do not take into account the member benefits of some of the best credit card deals. Many, for example, will offer free travel insurance if you purchase tickets using the cards.

Annual Fees

Annual fees are probably the most important consideration. With the exception of some areas of the world with struggling economies, the best credit cards almost never have any annual membership or card-holder fees.


Companies to Consider For Credit Card Processing

Credit card processing means a lot to your business. Whenever you go for it, make sure you get the best for yourself. Now, you might wonder how to find out the best companies for credit card processing. Well, the answer is a simple one: you are the best judge for taking decisions for your business. Confused? We are here to help you out. Here, you will find a few virtues of a good company and a list of some of the best companies for credit card processing in Michigan.

It is, somehow, difficult for beginners to convince banks to offer merchant accounts. Mostly, banks do not provide these merchant accounts to small business holders. So, if you are one of them, it is advisable to go for a third party that will arrange matters for you. Now, there are many things that you have look for in a Michigan credit card processing company. The first thing that you have to take into notice is the interest rate of the company. You should compare the interest rates and other additional charges of various companies to find out the best. Do take into consideration all types of fee while comparing charges of any two Michigan credit card processing companies.

Try to look for a Michigan credit card processing company that gives you an option of buying the software or equipment, instead of getting it on lease. This makes your task easier. Moreover, you should talk to the representative of the company to clear all your queries. However, there is no harm in saving money but do not consider it as the sole factor for taking decision. Besides these, also try to find out a company that does not involve any third party between you and the company. The company itself should take care of all your transactions.

Now, here is a list of some well-known Michigan credit card processing companies that you might consider for yourself. ABC Global,, Credit Card Processing And Merchant Accounts, Paynet Merchant Services, Inc., Superior Merchant Solutions, United Bank Card Merchant Services, Abtek Card Services, Alliance BankCard, Alpha Card Services, Avid Payment Services and Central Payment Corporation.

Take into your consideration all these factors and the names of these companies while deciding which one is best for your business.


0 Percent Interest Credit Card Offers

0 percent credit card offers have proven to be a popular means for consumers to maintain cash flow for as long as twelve months with few consequences. Around the year 2000 and shortly after the collapse that followed the terrorist attacks of 9-11, the U.S. economy ushered in a Renaissance period of sorts in terms of credit offers. During that period of time, lucrative pre-approved 0% APR, no interest credit card loan offers were everywhere, including college campuses, stuffed in mailboxes, and everywhere online.

The major card issuers promoted credit cards with 12 month 0 APR teaser offers to attract customers. The idea was to tempt new applicants with introductory offers and ultimately turn them into long-term cardholders and spenders who carry balances forward. Eventually, this led to fierce competition among the card companies as each one introduced its own versions of the classic credit cards 12-month APR. The competition led to increases in the promotional period, causing it to grow from an initial 6 months to 12 months or longer.

Eventually, some cards even extended the zero percent balance transfer periods indefinitely, leading to what ultimately amounted to a zero percent balance transfer for life credit card offer. The only thing keeping the balance transfer tidal wave in check was the existence of balance transfer fees, usually set at the rate of three percent of the total amount transferred.

Users of credit offers with 0 percent APR on purchases should always work towards paying off the total statement balance before the end of the promotional period, as typically once the promotional period ends the card reverts to very high interest rates. After scouring all available credit card offers, you will likely find a few that are reasonably good quality. Balance transfer fees may apply, however, so it is very important to pay attention to the details of the credit offer in question.

Do enough research before your credit card application to ensure you understand the terms and conditions of the many credit cards as well as what the different providers offer. Pay close attention to all fees and charges tied to the use of the card, such as the cash advance and balance transfer fees.


What to Consider When Looking For a Business Credit Card

When attempting to start a company many run across the situation of financial funding and the addition of their first business credit card. These are great for the separation of personal finances from business finances. With banks really favoring Small Business Owners these days the offers for these cards can add up very quickly and provide numerous benefits that regular cardholders wouldn't receive. It's important to remember to look at these offers very carefully and to not get wrapped up in every benefit offered as it's easy to become overwhelmed.

Narrow Down the Card Offers To Those That Will Benefit Your Company The Most

With all the different Credit Card packages they include tons of different offers. Choosing the one that will help your business grow is the key here. One example would be a business that requires a lot of traveling. In this case you would be doing your business good by entertaining an offer from a card that offers mileage points or cash back. Other times just the use of these certain cards can yield great discounts for airline travel, which for a traveling businessman, comes in very handily!

If your company doesn't do much traveling, but makes frequent large purchases. It may be wise to choose a card that offers cash back on certain dollar amounts. It's always smart to take advantage of these offers as it's free money that can be used to grow your business.

Keeping in mind the needs of your business and how it matches up with the different offers will help you in choosing the best package. Avoiding quick decisions based on un-needed benefits is the best course of action to take. Remember that you are building a business with every decision you make, choosing the right credit card package is also one of them.


How to Apply For 0 APR Credit Cards

If you are considering debt consolidation as a means of lowering your monthly debt costs and improving your financial position, 0 APR credit cards can be used for this purpose and save you more money than a debt consolidation loan. These balance transfer cards allow you to transfer the balances of your current credit card to a single zero rate introductory credit card. This means that during the introductory period you will not have to pay interest on your balance which can save you quite a lot of money every month. By using your interest savings to reduce your credit card balance, you can get out of debt far more quickly than if you consolidated your consumer debt directly into a fixed term personal loan.

To get the most benefit from 0 APR credit cards when used for debt consolidation, it is important to get the longest possible interest free term, a low balance transfer fee and low fees and charges. If you can get an introductory term of at least 9 months but preferably 12 months, you can make a serious dent in your debt.

The downside of using a credit card for debt consolidation is that as your balance reduces your available credit will increase proportionally. This means you will have to be very disciplined to not increase your debt further. One way you can protect yourself is by contacting the credit card provider to lower your credit limit whenever you reduce the balance by a predetermined amount.

It is also important to cancel your old credit cards once your balances have been transferred to 0 APR credit cards. Although some lenders will do this for you, many don't and the temptation will always be there to use the credit cards in a pinch. This can lead to a worse financial position than you are in currently.

To truly benefit from transferring your balances to 0 APR credit cards you also need to take an honest look at why you ended up with high credit card costs in the first place. This requires that you look at your spending habits and the way you organize your finances. Do you have a budget and if so do you keep to it? If you don't have a budget, now's the time to draw one up and stick to it. There are some excellent, free online budget calculators or downloadable spreadsheets you can use to help you create a reasonable and workable personal or family budget. Once you have improved your financial habits and have a plan for reducing debt and increasing savings, you will find that the financial pressure begins to ease.

At the end of your introductory term, you can choose to transfer the balance to yet another zero rate card or you can refinance your now much lower balance into a low rate personal loan. Used wisely, 0 APR credit cards can help you reduce your debt and get your finances in order. The internet has made sourcing these balance transfer cards easier than ever before. Simply do a search and you will discover how many offers are actually available. A credit card comparison website will make the whole process quick and easy by providing a small selection of the best offers to choose from along with an online application facility. Never has it been easier to transform your life.


Essential Things to Remember on Lowest APR Rate Student Credit Card

If you're a student, it is understood that you don't have an established credit history. That is why you need to select the lowest apr rate student credit card after the initial sign up period. But even if you have a good reputation own your credit history, you must quality for a reasonable interest rate as a student. This card must offer an annual percentage rate in the mid-teens, or about 16 percent to 17 percent.

Also, the students must realize that there are various cards offered that don't usually charge annual fee and offer a grace period of at least 20 days, which can be key if they do not make their monthly payment on time. The lowest apr rate student credit card is on one of the most appealing type of cards that you can get online. The best low interest cards are used for FICO score which includes low fixed rate, 0% apr balance transfer, cash back and low rate credit cards with other type of rewards, and no annual fee. The lowest APR plastics can come with 0% rate.

Each year, the students across the country are bombarded with lost of credit card that offers the most promising benefits. Normally, they will have to avail from five to seven offers during their first week on campus. Don't be surprised if you find in your campus some booths that will offer goodies only to find out that you will need to sign up for a credit card on a spot. While it's a tempting offer, you can still get the finest deals of lowest apr rate student credit card online.