When it comes to choosing credit cards, one of the first things one should check on is the interest rate. Obviously, different credit cards come with different rates and terms of interest. In this article, we’ll discuss the options you have particularly with regards to the interest rate that the credit card offers.

Fixed vs. Variable Interest Rates

Fixed interest rate credit cards are unchanging through out the duration of the card while variable rate credit cards are subject to changes depending on the Prime Rate in the market. It only follows that if the Prime Rate falls, your interest will also decrease. Take note however that the rate will not fall below the minimum cap set by your bank. But if the Prime Rate is high, the interest rate on you card will also increase.

What attracts people to variable-rate credit cards is that they start with really low rates compared to fixed-rate cards. However, it is important to bear in mind that these low rates can balloon up after months because it is directly affected by inflation rates. For more assurance, it is therefore recommended to go with fixed rate interest credit cards.

The 0% Interest Credit Cards

Credit cards offer "teaser" or introductory rates as part of their marketing scheme. To entice people to sign up, a credit card company may offer a very low interest or even a zero percent interest on purchases, balance transfers or both.

Credit card holders can take advantage of these offers. However, before sign up, don’t forget to check on the duration of the offer. Some credit cards give up to a year of these low rates while others may only allow 6 months or less. Be sure to inquire how much the interest would be after the introductory period ends.

Interest on Business Credit Cards

Business credit cards often come with a much lower rate of interest compared to personal accounts. Business owners can grab this opportunity since credit cards for businesses are also one way to build a business credit. A separate credit for business will allow more flexibility and convenience when the time comes that you need to expand the business.

Business credit cards also provide more opportunity to get incentives through its reward programs. Since businesses spend more than ordinary consumers, it easy to collect points and earn rewards using credit cards.

These reward programs differ to suit every business needs. For instance, Frequent Flyer Miles Program is especially suited for businessmen who usually travel for business purposes. With this program, the credit card holder can avail of free airline tickets, free or discount hotel accommodations, car rentals and travel insurance privileges. Other reward programs are cash back rewards, gas rewards, rebates etc.

In conclusion, the above factors are what you should check when considering credit cards. Nevertheless, the interest rate of a credit card isn’t the only factor that must be considered. Don’t forget to understand the complete terms and conditions of the credit card issuer as well.