If you are looking at some of the pre-approved offers from credit card companies that come in the mail you may want to know, ‘How do credit card interest rates differ by company?’ If you want to do an in-depth study of credit card companies, go to their online websites. The available programs offered to borrowers, the interest rates, and fees can all be different. Compare all this information before choosing a card that will meet your financial situation.
One recent program that credit card companies began offering as incentives to use their product are rewards in the form of points that the user can redeem for merchandise and for travel discounts. As the credit card holder uses the card for purchases, points accumulate that can be redeemed from the credit card company catalog for merchandise. The points can be used to obtain free and upgrade travel accommodations. A lot of the companies have made agreements with certain hotels, airlines, and other merchants to offer bonus points or points that will grow quickly in the rewards program. You may be able to find a company that offers cash rebates for use of their card.
If you plan on paying off the balance in full each month, you can choose the card that offers the most rewards as an option. You will not have to be concerned about the rate of interest unless you plan to have a balance remaining each month. If you carry a balance you will need to get the card with a lower rate of interest. Review the other benefits the card offers.
If you are a frequent traveler you may have to rent a car at each stop. Your card may offer a discount and may include insurance on the vehicle during the rental period at no charge to you when you use the card to pay for the rental fee. Some credit cards offer disability insurance and life insurance at a low cost while you have an open account with their company. The life insurance will pay the balance remaining on your account if you die and the disability insurance will make payments for a specified amount of time if you are unable to work.
Look carefully at your application and at the online website for any fees that are charged in addition to the interest on funds borrowed. Some cards have annual fees, some have fees for late payment, and others have fees for ‘over-the-limit’ charges. The card issued by American Express requires the balance to be paid in full each month. There will be no interest charged, but you will pay a large annual fee. With other cards find out if there is a grace period and find out how the interest is calculated. Some calculate interest differently on cash withdrawals and differently for those purchases made at a merchant.
Be sure to read all the fine print before you decide on a specific credit card. You have learned by reading this article the answer to, ‘How do credit card interest rates differ by company?’