Credit Card Rates Cheaper Than Loan Interest Rates

Posted by: Lisa N. | Jan 18,2008

These days, it’s often cheaper to get a credit card than it is to get many types of loans. In the old days, credit cards charged really high interest rates and finding cards with competitive rates seemed impossible. Now, you can compare credit cards online to get the best interest rates- and they often beat the interest rate that comes with securing a loan:

 

Personal loan rates are all over the board, but I found loan interest rates that varied between 7.99% and 15.77% at U.S. banking websites.

 

Payday loans have higher average interest rates. The average payday loan interest rate is somewhere between 200% and 600%. If late fees are applied to the loan, the rates could be closer to 900%.

 

Credit card interest rates are often much lower than loan interest rates. Compare online and you’ll find many credit cards that have 0% interest rates for six months to a year- or more. Other credit cards have fixed rates with a percentage rate of 9%-12%.

 

With these kinds of competitive rates, it’s much less expensive to get a credit card than it is to get some types of loans. And since not all payday loan companies report to the credit bureau, using a credit card responsibly can also improve your credit score.

 

You can compare credit cards online and apply now.

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