What is the Criteria for Low Interest Credit Cards?

The criteria for a low interest credit card are set by a bank or lending institution issuing the card. The elements of the criterion for a low interest credit card, as you might suspect, includes credit rating, prior or ongoing relationship with the issuer and an existing credit card with the issuer.

Credit Rating

An individual’s credit rating or FICO score is going to be an important factor in determining their qualification for a low interest credit card. There is probably not a person in the world that does not understand that the higher the credit score you have, the lower the interest rate you will pay on loans and other extensions of credit. A FICO score, which ranges between 300 to 850, must be at least near the mid-700s, although different lenders use different scores and other factors that may be higher or lower than 750.

Existing Relationship with the Issuer

Having an existing or prior relationship with the card issuer also helps the issuer determine the qualification of the cardholder for a low interest credit card.  The issuer has a personal relationship with the applicant and is more inclined to continue extending credit opportunities for the individual requesting a low interest credit card based on that relationship. It may not be difficult or impossible for a person without a prior relationship to qualify for a low interest credit card provided that the individual meets the other qualifications of the issuer.

Existing Card with the Issuer

Having a card issued by the issuer is the same as having an existing or ongoing relationship with the issuer. The issuer has an intimate understanding of the spending and bill payment history of the person requesting the low interest credit card and should have no problem determining the eligibility of such an applicant.

Reason for Low Interest Credit Cards

Low interest credit cards are provided to an issuer's top customers and as a way to reward loyalty or attract other types of cardholders. Once an applicant has met the criteria established by the bank, obtaining a low interest credit card should not be much of an issue for the applicant.

Waiver of Requirements

Banks may also waive these requirements for certain borrowers that may not otherwise qualify for a low interest credit card. This waiver may be based on a long-standing banking relationship or cardholder who has been a customer with the issuer and faces a temporary setback or downturn. This waiver is certainly at the discretion of the issuer and is handled on a case-by-case basis.