Credit Card Rates In The United States
Many people these days own credit cards, and as long as you are sensible with them they are a fantastic resource to have.
A credit card is a small plastic card with an electronic strip on it that is connected to a system under your name and details. The user can use the card to purchase goods with the promise to pay back the money at the end of the month. It sounds great, but the only catch is that if you fail to pay back the full amount at the end of each month you will be charged interest for any money owing. Depending on what credit card you have and what deal you have, these rates can vary substantially, and many people find themselves heavily in debt.
Many credit card companies lure people into signing up their cards by offer interest free rates for a certain number of months. After this time, the rates can be as high as 40%. In the USA there are no federal laws on how much or little credit card companies are allowed to charge - although the states have their own laws. South Dakota has set no limit to how much they can charge, meaning that many credit card companies have set up business here.
As well as general interest rates, credit card holders are also subject to several other fees for various different matters. If the user exceeds their limit on their credit card either deliberately or by mistake they may be charge and over limit fee. Many credit cards also have membership fees that are either charged monthly or annually - sometimes these are a percentage of the limit on the credit card. If a customer request a cash advance or a convenience check there is usually a 3% charge for this. Some credit cards also charge up to a 3% fee for foreign currency transactions. If a check is returned for some reason such as it bounces there will also be a fee, as well as payment processing fees. So as you can see it is important to be aware of all of the fees involved with owning a credit card, as if you aren’t careful they can lead you heavily into debt.
When choosing a credit card, they are not simply all the same. Different cards have different offers to suit a range of needs and lifestyles. Perhaps you are most interested in having low interest; maybe you are a student and want a card suited to you; or maybe you love to travel and you want a card that gives you frequent flyer points every time you shop.
Bankrate.com is one of several websites where you can search for all different types of credit cards and view their rates side by side for comparison. According to the site, the best credit card for low interest rates in the USA is Discover More (SM) Card. There are several bonuses to this credit card, including 0% APR for 6 months on purchases, and up to 6 months on balance transfers. After this the regular APR is 10.99%, but there are no annual fees. This is also suggested as the most popular and best credit card for students as it also offers 5% cash back bonus in categories such as travel, gas, groceries, restaurants, movies and more.
If you are looking for a credit card that offers you Frequent Flyer points, the Miles by Discover card is the most popular and has the lowest rates and best deals. The rates are the same as the credit card mentioned before at 10.99% after 6 months and no annual fees, but for every $1 you spend you earn 1 air mile that can be used on over 90 different travel companies. They also offer you a bonus 1,000 miles each month for the first year you own the card as long as you make at least one purchase.
Perhaps you would prefer a card that offers you cash back. Citi PremierPass Card - Elite Level may have a $75 annual fee, but it offers you 2 points for every dollar you spend on every day items and 1 point for every mile you fly on an airline. Also, if you purchase airline tickets for friends and family using your card you get points too, as well as numerous other benefits. The rates for this card are 13.24%.
As you can see, rates vary between cards in the USA, and it is important to ensure you understand all the fees and rates involved in getting your credit card before being lured in by any special offers they may have. If you use your credit card wisely they can be a great thing to have.
