Categories
In This Post
Check on Your Credit Score
Don’t Respond to Unexpected Messages Offering a Lower Rate
Shop Around and Compare Your Options
Keep an Eye Out for Intro Offers
____________
When looking to open a credit card, you’ll likely want to shop around for the best interest rate, especially if you plan on carrying (or transferring) a balance.
Here’s how you can do that safely and responsibly.
Check on Your Credit Score
Before shopping around for credit card offers, it is helpful to know where your credit score stands to know what to expect in terms of interest rates.
The higher your credit score, the lower your credit card interest rate will likely be.
Don’t Respond to Unexpected Messages Offering a Lower Rate
Scammers know that folks are in the market for a better credit card rate, and they take advantage of that fact.
If you receive a message out of the blue from an unknown company offering to lower your rate, it’s likely a scam.
According to the FTC: “Scammy debt relief companies promise to help reduce your debt, but what they really want is your money. They charge you an upfront fee before they help. But that’s illegal and along with getting little to no help, you could wind up in even more debt. Some scammers use information they already have — like the last four digits of your Social Security number, your zip code, or your exact credit card balance — to get you to trust them and share more information. Others say their rates are only available for a limited time, to rush you into deciding. This is all part of the scam.”
To keep yourself safe, avoid sharing personal information over the phone and never pay upfront for credit help!
Shop Around and Compare Your Options
In many cases, you’ll be able to get a lower credit card rate at a local or regional credit union rather than a major national company.
Many financial institutions post their credit card rates on their websites. Visit local credit unions’ websites to see what kinds of rates they offer and compare them to find the best rate in your area. (For reference, Spero’s rates are all listed here.)
If you’re looking at major national card issuers, there are online comparison tools that allow you to weigh the pros and cons of different options.
Pro-Tip: Some banks and credit unions offer special credit card rates for existing customers. Reach out to a rep from your primary financial institution to see what deals are available to you.
Keep an Eye Out for Intro Offers
Many new credit cards come with extra low – or 0% – interest rates to encourage you to open an account.
For cardholders who need to make a large purchase and pay it off over a few months, this is a great way to minimize the interest on that expense. For those who are completing a balance transfer, a low/0% interest rate can be a great opportunity to pay down debt without lots of additional interest accruing.
However, that low intro rate typically isn’t permanent and will likely increase after a set period. Make sure to read all the terms and conditions of a credit card before signing on the dotted line to avoid locking yourself in to a less-than-stellar interest rate.
Finding a great credit card rate can seem tricky, but with careful consideration and consistency, you can find an option that works for you!
This material is for educational purposes only and is not intended to provide specific advice or recommendations for any individual.
