What is intro credit card rate? An introductory buy credit rate (or introductory ) interest rate is the lowest interest rate that is applied to credit purchases made on your account. In most cases, some cards come with a introductory interest rate for purchases made on your account before your introductory period expires, which helps you save money on interest if you pay off your balance before the term ends. After the term has ended, your interest rates may increase. However, this may not happen with all introductory interest rates.
How are interest rates determined? The base interest rate you may be offered when you open a credit account is based on your credit score. Lenders take into account your payment history with them in determining your interest rate. If you have been making regular payments on your account, lenders will feel more comfortable with you and offer you a better interest rate.
Are there other factors that affect my interest rate? Your credit score and financial history may affect your eligibility for low-interest or zero-interest balance transfers. Lenders also look at your ability to pay bills on-time and make your payments on time. Your debt to income ratio and your payment history will also be taken into account before a lender determines your interest rate.
How are interest rates calculated? When you first start using your new credit card, your interest rate is usually just a percentage of your total available credit. This means that a great deal of the time you will not even notice the difference between the advertised interest rate and the actual interest rate. Lenders want to offer low interest rates, but they need to make sure that they do not raise their rates when people start missing payments or are behind in their payments.
Is it safe to use credit cards for purchases? You should always carefully read statements and understand the terms and conditions of any credit cards you apply for. Credit cards come with high interest rates, and you could be quickly buried in debt if you fall behind on your payments or make too many. A good rule of thumb is that you should only use credit cards if you are absolutely positive you can repay the balance in full each month.
Will my credit score affect my approval for zero APR on purchases? Your credit score will determine your eligibility for various types of offers. If you have great credit, you will likely be approved for the best offers. On the other hand, your credit score will also affect whether or not you can get an 0 apr on purchases offer. Generally speaking, people with lower credit scores will be more likely to be declined if they apply for a purchase that will not help their credit score.
Will my credit limit be raised if I apply for a zero APR on purchases? If you are approved for a zero APR on purchases, you will likely not see a significant increase on your credit limit. However, this does not mean that you will not have a credit limit increase. This is an individual decision, dependent upon your financial situation, but you should keep in mind that some lenders will increase your limit if you remain at a certain level of debt.
How long do credit limits last? Most credit cards offer a 30 day grace period on purchases, after which the new interest rate will be applied. After the initial interest period, the credit limit will remain unchanged unless you cancel the card. If you are in need of longer grace periods or are looking to reduce your debt, you may consider going through a credit counseling service to negotiate payment arrangements with your creditors. If you are unable to accomplish these arrangements on your own, you may want to work with a credit counseling agency to help you reduce your debt.