How do I know if an interest rate is low enough?

Low interest credit card comparisons

You may have set out to find a low interest credit card, but before you begin your search you need to know what low interest really means. Start by finding out what interest rate you are currently paying on any credit cards you already have.

You can use these as a beginning basis of comparison because you know that any new credit card you apply for should at least have a lower interest rate than the cards you already have.

Don’t stop there, though. Find out what lenders are offering, and how these interest rates stack up to what you are already paying. Compare your current rates to those on our comparison chart of the latest interest rates.

For example, if you have a credit card interest rate of 8% and all the advertisements you can find for credit cards list interest rates of 12%, then you are probably better off not even bothering. If, on the other hand, your current interest rate is 18% then the 12% interest rate starts to look mighty appealing.

Another thing to consider is your credit score. Before applying for any credit cards, you should review your credit report to ensure your credit history is strong enough to obtain a low interest credit card.