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The Best Credit Card Offers - How to Qualify For The Lowest Credit Card Rates

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Qualifying for the best credit card offers can sometimes seem like a game that you cannot win. If you have applied for credit cards recently then you know exactly what I mean. Each month, millions of credit card applications are sent to people who did not even ask for them. All of these credit cards offers promise the lowest rates or the best features. Did you know that only a handful of people actually qualify for the best offers? The remaining people get tricked into thinking their new card is better than it is.

There are, however, a few things that you can do to help you qualify for the best credit card offers.

1. Improve Your Credit Score - The best offers are typically offered to individuals with stellar credit. These people tend to have credit scores north of 800 and have no negative reports on their credit reports during the past 12 months. The best way to receive better terms is quite simple - improve your credit score.

There are a few easy techniques that you can utilize that will help lower your credit score in a short period of time. The first thing you need to do is to pay every bill on time. Do this every month without fail. Every time that you fail to pay a bill on time, a negative factor is reported on your FICO score. These negative factors really pull your credit score down. As soon as you get your bills each month, open them up, write a check and make the payment.

The next thing you need to do is to pay more than the minimum amount due each month. Typically your minimum payment will be around 4% of your outstanding balance. If you pay only your minimums each month, you will never pay off your debt. Additionally, your credit score is negatively impacted whenever you carry a balance that is more than 35% of your available credit. If, for example, you have a credit card that has a limit of $1,000, you should never carry a balance greater than $350. Figure out a way to pay more than the minimum amounts each month!

Finally, an easy way to improve your credit score is to leave your older accounts open, even if you do not use them. Once you pay off a few credit cards, cut them up but leave them open. Part of your FICO score is determined by the length of time you have had credit. Unless this card has an annual fee, leave it open (just do not use it).

2. Comparison Shop - If you want to receive the best credit card offers, many times all you have to do is look online. As technology advances, you can basically find anything that you want online. As more and more people realize the power of the internet, competition heats up and prices come down. Companies are willing to settle for lower profits per person in exchange for a larger share of the market.

While you are shopping consider other factors besides simply finding the lowest credit card rates. Having no annual fees or receiving 'rewards' may be an important aspect of your final decision. Personally, I would never own a credit card that has an annual fee. Why would you ever pay someone else for the right to borrow money? They are getting paid via the interest that I pay them and not one penny more.

One tactic that many people like to use is the 'zero-interest credit card shuffle'. With this game, you apply for a zero interest credit card from one of the credit card companies. If you are approved you simply transfer any balance that you may have from another card. Typically you would do this if you had a credit card that had a high interest rate and the company would not agree to reduce your rate. Once you have completed the transfer, you would then try and pay off the new credit card before your zero interest period was over.

When playing this game, it is important to consider a few things. Many times you will be charged $75 to $100 by your new credit card company for the right to transfer balances to your zero interest credit card. Try and get them to waive this fee. I have had decent success by insisting that they do so. Additionally, you should pay attention to the terms of the agreement. I once had a card that let me transfer my balances at zero percent interest for 24 months PROVIDED that I made three new purchases every month on my new card. This is NOT the way to get out of debt.

What made this worse was that if I failed to make the required purchases, my interest rate would have skyrocketed to 30%, retroactively applied. I was not even aware that this was legal, but I guess it was. Needless to say, I passed on this offer even though it seemed to be a good one on the surface.

3. Read the Fine Print - Sometimes it may appear that you have finally found the best credit card offer, only to realize in the fine print that after 60 days your interest rate jumps to 35%. It is crucial that you read, and understand, everything that is included. If you cannot understand it, walk away. If you could not explain the terms to a 12 year-old, it is too risky. Use common sense and realize that if it sounds too good to be true, then IT IS!

Most credit card companies are only in this business for the money. They do not care about you at all, so do not be fooled. If they can trick you into paying more, they will. Always proceed with caution.

Qualifying for the best credit card offers takes some time and effort. Nothing in this world comes easily or for free (no matter what our government thinks). Use the tips found within this article to develop a solid game plan. Improve your credit score, shop around and read the fine print. Doing so will truly help you in many areas of your financial life.