How to find lowest interest rate on credit cards

So how do you find the lowest interest rate credit cards? The key is to look for the following things when shopping around and consider all of these things before applying for any credit card.

Promotional Rates - These 'teaser' promotional rates are one of the most misleading things when it comes to a card having a 'low' interest rate. Many people fail to read the fine print on these deals and come to discover that once the promotional period is over, the interest rate on their card may jump upwards to 16-20% APR. 0% introductory offers along with low interest for the first 6 months or first year are common, but as soon as that time period ends, the standard interest rate kicks in. People get caught off guard by the interest that seems to appear out of nowhere on their statements once the promotional rate ends.

Always read the fine print on these 0% cards or low interest cards before applying. Make sure you are fully aware of the standard interest rate that will kick in after the time period ends. Also make sure you know exactly when the time period ends. Some offers may say 15 months for example, but based on your application you might only get a promotional rate for 6 or 12 months. Also many credit card companies start the promotional period as soon as you are approved; yet you might not get the actual credit card for weeks.

Rewards programs - If you want to lowest rates on your credit card, avoid rewards credit cards. These cards might offer great rewards, discounts, and cash back but they almost always come with higher interest rates then no frills credit cards. If you always or often carry a balance from month to month, you'll want to avoid rewards credit cards as the increased interest generally wipes out any rewards or cash back earned.

Annual fees - Unless you travel a lot, or spend a lot of money and pay off your balance in full every month, credit cards with annual fees make little sense for most people. Even if the credit card has a low interest rate, the annual fee itself is just like paying interest, except you get billed for it yearly no matter how much or how little you spend on the card. With annual fees ranging from 75 dollars a year to close to a 1,000 dollars a year; these cards are ones to avoid no matter how low the rate.

Fees - Late fees, service fees, and cash advance fees; they can all eat away at your bank account whether or not you pay your bill in full or carry a balance from month to month. Like annual fees, they are essentially profit for the credit card company; like interest that you don't have to spend to owe. Keep in mind too that even if you pay your late fees, the credit card company may still jack up your interest rate to a 'default' rate then can be as high as double your normal interest rate.

Overall you'll want to look for a card that has a low interest rate, no annual fee, and little or no rewards program. This kind of basic credit card will give you the lowest rate available; the promotional rates may not be offered on these cards but you'll know your APR right from the start. Your credit history and credit score may determine the interest rate that you'll get on your credit card. Always keep in mind that no matter how low your interest rate, if you miss a payment or go over your limit your low interest rate may skyrocket. Keep track of your spending and make sure you always pay your credit card bill on time, every time.