Hi,

If credit card companies are absolutely strict when approving applications, then does this apply to all banks? What about those banks that offer high interest rates to those who don't fit in their criteria so they can still provide their services to more clients?

Should RodVal also consider this option?

thanks!

Hi EdgarCC,
The premise of low interest credit cards is that they are for people who are low risk.. so by that definition, credit card companies are pretty stringent.

If RodVal gets a job that pays him enough to make his credit card obligations then it shouldn't be a problem... especially if he's kept his credit good until now, and he keeps making his payment..

The only danger he faces is not making payments because of his unemployment.

the SmartLine Platinum Mastercard has a very low interest rate and requires that the individual has excellent credit and a steady income.

Well, I didn’t know that banks are that stringent when it comes to low-interest credit card qualifications. I thought the criteria stay the same as long as you apply in the same bank.

Now, if RodVal gets a job but the pay doesn’t match his previous income, how much must he earn in order to qualify for a low-interest credit card? Would it help if he gets a second job? Do banks consider accumulated income when applying for a credit card? I don’t think he currently has bad credit since he’s taken a step back on his purchases and made sure his bills are all paid on time.

Nice explanation on the link that you provided. So are you suggesting that Capital One – SmartLine Platinum MasterCard would fit RodVal’s lifestyle in case he qualifies for a low-interest credit card? By the looks of it, that card outperforms the others.

Hey EdgarCC,

The problem with RodVal searching for a low interest credit card is that he is unemployed.. which means his credit won't be that great. In order to for RodVal to get a low interest credit card, he needs to have good / excellent credit.

This person is going to be searching for debt settlement or bankruptcy soon unless he can get a job. His ability to pay is not there.

What are the requirements for a person to get a low interest credit card?
You must have good credit
You must have a full-time income source
It's important to have steady employment
It's important to be able to make your payments every month with no problems

the credit card companies can ask you a series of questions about your employment, income in your ability to pay. Along with that they are going to do a credit check on you to see what your payment history is like.

With Canadians being in debt as they are, I'm sure there are many thousands of people who should be having low interest credit cards but they don't, because they're just not aware of it. People with good jobs, who are making a regular income yet they are paying the maximum amount of interest. These people need to seriously think about getting a low interest credit card to save money

this is an illustration of how much money you can save by switching over to a low rate card
http://www.canadian-money-advisor.ca/threadview/3082.html

this sounds good... i would like to have the 5.99% on balance transfers.. but I'm still curious to know if the Capital One card will cover all of our $44,500 in credit card debt? That's really the question at this point.

One of the things I like about the Capital One - SmartLine™ Platinum MasterCard

The low interest rate is guaranteed for 3 years at 5.99%. After that it's Prime + 3.75%. Keep in mind that you need an excellent credit history to be accepted for this card, but it will save you money in the long run.

Capital One - SmartLine™ Platinum MasterCard
* No Annual Fee, Annual interest rate for cash advances is 19.8%
* Enjoy our lowest long-term rate of 5.99% on purchases and balance transfers guaranteed for 3 years (as long you pay your bills on time)
* After that your rate will stay low and become a variable rate of Prime +3.75% on purchases and balance transfers
* Save money when you transfer high-interest debt with our no-fee balance transfer service
* Subject to credit approval
* Low Interest Rate for Canadians!!

http://www.canadian-money-advisor.ca/low-interest-credit-cards.html

With the medical expenses and funeral expenses that we just paid for we had to do it quickly so we just put our credit card. I imagine that a line of credit would've been better but we rent and we don't own a house. There's a lot of questions when it comes to this. At the time we just needed a quick solution is the relative didn't have any life insurance or medical insurance.

I guess I should just call some of the banks or do some shopping on this website. There's a lot of details to look at . I'm not sure if I'm getting a low-interest introductory and offer or if it's a long-term offer. Are there fees attached to doing balance transfers? It was the best annual fee for these types of cards? There just seems to be a lot of questions to be answered in this matter

I'm starting to learn this topic so I'm glad I found this website.

currently we have $45,000 in credit card debt. $24,600 of which is interest rates that are 19.95 or higher. The other portion of credit card debt is at 6.75% and we use that for renovations on our house.

My husband and I earn a good living and have secure jobs so we didn't really think about all of the interest we were paying each month. Just recently however we figured that we should be saving money where we can just because it's the right thing to do. I mean why waste good money on paying higher interest rates if we don't have to?

Our motivation is that we are starting to think about retirement, and I guess we should've done this many years ago but we didn't. So now our goal is to start saving money on interest.

So the question is which are the best credit cards for low interest, and should I be thinking about balance transfers.

Here is a good link that relates to credit cards.. I especially like their definition of credit card users:

Even they suggest that if you're a "credit user" then you should go for the lowest interest apr possible.

Credit card philosophy: Before you apply for open credit, you should decide your personal credit card philosophy. What kind of credit card user will you be? There are three main types of credit card users: credit users, convenience users, and combined convenience and credit users. If you use your credit card to borrow money that you don’t have, you are a credit user. Credit cards are one of the most expensive ways to borrow. Credit users typically carry a balance from month to month. If you are a credit user (it is not a good idea to be a credit user), look for a card with a low APR
http://personalfinance.byu.edu/?q=node/331

RedFlagDeals was recently bought off by YellowPages, and now banknerd.ca has been bought by RBC.

Read the full story here.

BankNerd.ca acquired by RBC
Wednesday, March 31, 2010

Toronto, Canada. (April 1, 2010) – BankNerd.ca, one of Canada’s largest financial websites, today announced it has been acquired by RBC.

This acquisition will help RBC further enhance its Social Media and general online presence. With BankNerd.ca ranked high on most major Canadian banks (#3 for Ally Bank Canada), this becomes a huge advantage to RBC over its competitors.

“BankNerd.ca continues to grow quickly in the Canadian marketplace online. It has become a terrific resource for Canadian consumers interested in the banking and also the finance industry.” stated by a RBC representative today. “They have very lucrative and popular keywords that will further expand our business” said a RBC representative.

RBC acquisition of BankNerd.ca, is the first acquisition from a Canadian banking institution buying an online website. Though, this isn’t the first time a banking website has been bought. Bankaholic.com was bought by BankRate.com for US$15 million in 2008. A large investment at the time that seems to be paying off.

“People have called us crazy for selling,” stated Bank Guru, a contributor at BankNerd.ca. “I think we’d be crazy if we didn’t align ourselves with such an online focused company. I’m thrilled to see how RBC will take BankNerd.ca forward.” Bank Guru goes further by stating “RBC has a lot of terrific sites, like: Better Student Life, The Next Great Innovator and now BankNerd.ca”

Bank Guru and Sensei will continue to be part of BankNerd.ca till December 31st, 2010. This will allow Bank Guru and Sensei to further develop an upcoming new project called “Fool Banking” and develop Saving for Serenity further.

Is selling the right decision? I like banknerd.ca, to be frank. They publish great articles, so now I'm wondering what changes will come to the site.