Get a Low Interest Credit Card
By Jami Delgado

It is nearly impossible to live without some sort of credit these days. But that does not mean we should surrender to the credit card companies and let them make all the terms. There are many strategies to employ that can lead to more amicable terms. Follow some of these simple guidelines to learn how to get the best interest rates.

Know your credit history. Get a free copy of your credit report from each of the three credit reporting bureaus. Check it for accuracy and dispute, if necessary. This step could significantly improve your FICA score, which most credit card companies look at to determine your interest rate.

Do research. Don't just apply for the card offers you get through the mail. Do a google search for low interest credit card offers. Many of these offers could only be introductory rates, so beware. NOTE: It is possible to keep rotating balance transfers to low interest introductory rate cards to keep the interest rate low, but this requires considerable record keeping and determination.

Apply for as many cards as possible within a few days of each other. According to the new 2008 FICA scoring system, putting in for several applications at a time will no longer harm your credit if it is all done within a short time period, since it is obvious you are shopping for credit. This will give you the most options.

Use the offers of one card company against the others. Call each company and explain what other companies are offering you. See if they can match interest rates or give you other amenities such as air mileage, reward points, or cash back rebates.

Finally, keep your interest rates low by paying off balances at the end of each month, never being late on a payment, and never reaching or going over your limit.

Tips:

• Having several revolving credit accounts open on your credit report helps your score, but be sure to keep the balances low or at zero. This improves your debt to credit ratio.

• It is better to have a few cards with higher credit limits than many cards with lower credit limits. After having the card for a while, call the company and request them to extend your credit limit. Most companies are willing to do this if you have shown responsibility.

• Be careful not to accept too many offers. Opening too many accounts at once could harm your score, let alone be difficult to manage.