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Home > Credit Card Articles > Good Credit means Low Interest Rate

Enough has been written for people with bad credit. What about those of you who have excellent credit, and always pay your bills on time? Are you being rewarded for having a good credit score (a credit beacon score above 700)? Well if you're not, its your own fault because now is your chance to take advantage of the many outstanding offers available for a low interest rate credit card. Many of these credit cards also offer great credit card reward programs. At MyCreditCard.com you will find many credit cards that offer either a low fixed rate APR (Annual Percentage Rate) or a low introductory APR.  There is a huge disparity in the interest rate credit cards will charge you, depending on your credit score. The better your credit score, the more banks will compete for your business and want your business. Those of you with a good credit beacon score are going to get the best credit card offers. But are you taking advantage of them?

Perhaps you’re comfortable with the card you’ve been using, and feel like it’s a burden to re-apply for a new and improved credit card? But we try to make that process easy and painless at MyCreditCard.com. Furthermore we continuously, on a daily basis, monitor credit card offerings to bring you the very best cards available. Not only can you significantly lower the interest rate a card charges you, but the reward programs that go along with these low interest rate credit cards are quite impressive. For example, many of them will offer you a full concierge service, 1% cash back on all purchases, 5% cash back on gas and other selected purchases, gift rewards, etc. Why pay a higher interest rate to another bank when you can simply apply online easily at MyCreditCard.com, and within minutes receive instantaneous approval? By the way, it is a myth that applying and being approved for additional credit cards will lower your credit score. This is simply not true. See our article titled “Canceling Your Zero balance Credit Card May Actually Hurt Your Credit Score." It actually helps boost your credit score to have more credit available than you are using. Your “credit utilization score”, a ratio that the credit bureaus love to use, is going to go down as you have more credit cards that you have a zero balance on. The lower your credit utilization ratio is, the higher your credit score will be. So, by all means, don’t be afraid to apply for one of these low interest credit cards because you believe it will hurt your credit score. That is a myth. Just pay off the balance on the higher interest rate credit card, but don’t cancel it. Then, logically, your future charges should only be to the credit card with the lower interest rate, which also usually has better reward programs. Also, these type of credit cards usually offer you a very attractive first year low introductory rate, especially on balance transfers. So why not apply for the lower rate card, transfer the balance on the higher rate credit card to the new lower rate credit card, and also take advantage of the first year low introductory rate (MANY TIMES THE INTRODUCTORY RATE IS ZERO PERCENT FOR THE FIRST 6 MONTHS)? This is an interest free loan being offered to you as a reward for your good credit score! Also remember, most credit card interest is considered consumer debt, which is not tax deduSctible. So the less interest you pay, the better off you are as there is not even any tax advantages of paying a higher interest rate.

Remember, you are in high demand by the banks if you have a credit beacon score of 700 or above. Take advantage of what the banks will offer you, lower interest rate credit cards. You will likely get better rewards, a low, if not zero percent introductory rate, and a much lower long term interest rate.
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By Woody Alpern

CPA and Registered Investment Advisor