Advantages of Low Interest Credit Cards
Credit cards when used in a proper manner can be very beneficial to the cardholder.
And a credit card with lower interest is of utmost benefit to the consumer. Some people stick to their first credit card, without even thinking of switching over to a credit card with a lower interest due to the habit of using the credit card for many years.
But switching over to a lower interest credit card will prove to be worth the hard work taken to do so by researching for the best option, as one can see by self how much money can save by paying a lower interest towards purchases done using the credit card.
Credit card customers have an option to choose between fixed lower interest rate credit card and a credit card which comes with lower introductory interest rates.
People who have good credit ratings can acquire a lower interest credit card with ease compared to those who don not have a good credit history, and can only get a credit card with a lower credit limit.
As a result of stiff competition among credit card companies, negotiating and obtaining a lower interest credit card is very simple.
There are many websites which help the consumers find out a lower interest rate credit card, and promise the information needed for comparison, prevailing market rates, expected rates in the future etc which educates the consumer on the latest happenings in the industry.
A person habituated to carry a balance on the credit card every month can benefit by saving a huge amount of money with a credit card with lower interest rate.
Some people have an objective to pay off the credit card debt and the decrease in interest rate will enable them to clear off the debt faster than ever.
Lot of credit card companies promote their credit cards by giving a zero percent interest rate on balance transfers. Thus a person can clear his credit card debt without even paying any interest for it.
Normally incentives are provided to sign up for the lower introductory interest rates for the credit cards.
But caution is to be taken to read the fine print in order to find out if there are any higher rates charged after the introductory period.
Some might even charge a balance transfer fee for a low introductory interest rate credit card. One can take advantage by transferring the debts from the higher interest rate credit card to a lower interest rate credit card.
Before signing up for a credit card it is wiser to get the details regarding introductory interest offer, APR percent, introductory period time, charges if any for balance transfers, additional fee charged if any, security feature etc.
Low Interest Rate Credit Cards – Saving on Interest Expenses
Low interest credit cards can provide you with substantial savings when it comes to interest expenses.
Of course, the best way to save on interest is to pay the balance of your credit card off at the end of each billing cycle. In this way, you get to borrow the money for a brief time without having to pay any interest.
For many people, however, paying the credit card bill off at the end of each month isn’t always a realistic option. Therefore, low interest rate credit cards are the best alternative.
Finding Cheap Credit Cards
Fortunately, finding cheap credit cards is not all that difficult, particularly if you have a good credit history. All of the major credit card companies, including MasterCard, Visa, Discover, and American Express, offer low interest credit cards.
Therefore, you can easily apply for one with your preferred company. Often, these companies will send mailings to your home or advertise their low interest rate credit cards on television.
While advertisements and mailings provide you with a great way to learn more about your available options, you should also research other low interest credit cards.
After all, one way some of these companies manage to keep their interest rates low is by cutting out advertising expenses.
Therefore, the best way to browse through available cheap credit cards is to visit a website offering side-by-side comparisons of credit cards.
In this way, you can look at the introductory rates, long term rates, and additional benefits of the cheap credit cards you are considering.
The Introductory Offer
The introductory offer provides you with one great way to save on interest expenses. Many credit cards provide a special introductory offer in order to entice new customers to apply for their credit card.
In fact, several of these introductory offers are 0.00% APRs and can last as long as one year.
More commonly, however, these special rates last for 6 months, three months, or one month. Often, your credit history plays a role in determining how long your introductory offer is good for.
When taking advantage of an introductory offer, you need to be sure to find out what the APR will be after the introductory period is complete.
It is not uncommon for the rate to be quite high afterward. Therefore, you will need to be sure to pay off the balance entirely when the introductory period is over in order to get the optimum savings on interest expenses.
If this is not a possibility for you, then be sure to select low interest credit cards that remain low interest after the introductory period is over.
The Low Fixed Rate
Another option with cheap credit cards is a low fixed interest rate. These cards do not necessarily have a great introductory rate, but the rate remains continuously low when compared to other credit cards.
This is often the best option if you know you will be maintaining a balance on your credit card for a long period of time.
Although the low fixed rate may not be as enticing as a 0.00% introductory rate, it can still save you substantial amounts of money in the long run.
Here is an example:
If you carry a balance of just $1,000 on your credit card for one year with a 20% APR, you will end up spending $200 that year in interest.
On the other hand, a low interest credit card with a fixed APR of 8% will only cost you $80 in interest that year – saving you $120.
Low interest rate credit cards with attractive introductory rates and low interest rate credit cards with low fixed rates can each save you money when it comes to interest expenses.
Be sure to consider both options carefully and to analyze your spending habits and your income to determine the one that is best for you.
Low Interest Credit Cards – The Who, What, Why, Where and How
Low interest credit cards are one of the perks of having a good credit history. For individuals who do not have a history of bad debts,
possess good financials and can show a steady income over a period of time, cards with low APR’s are the most cost-effect credit card alternative.
Though credit card companies issue cheap credit cards with discretion, it is possible for individuals with so-so credit to find credit cards that are a good deal. With usage of the card and good credit history, their APR can be lowered as their credit “worthiness” improves.
The key factors to look into when weighing the benefits of two cards that are competing for your credit are:
1) Introductory APR
2) The Annual Percentage Rate (APR)
3) Annual Fee
4) Offers, rewards, bonuses etc
The APR or the yearly rate of interest on the card is one of the prime determinants of the financial benefit that your card offers you.
Some low interest credit cards offer an introductory APR of zero. In such cases you need to analyze the length of the introductory period and the regular APR charged after that.
The best low interest credit card offers are those with a long introductory period and a low regular APR on your low interest credit card.
Credit card companies usually charge an annual fee. However if your credit history is good enough, some card issuers will waive the annual fee for the first year.
The ideal low interest credit card for you is one which aggregates the cost and benefits in a manner that gives you the maximum financial advantage.
Having a cheap credit card with low/no APR, and low/no annual fee that also offers customer rewards is like owning a luxury car that guzzles little or no fuel!
Just Before You Get Your Low Interest Credit Card
Most importantly, remember to do your comparison shopping to find the right card. For instance, is your low interest credit card a fixed rate or variable rate card? Cheap credit cards that are variable rate can be billed at different rates without notification.
But remember, a low interest credit card rate, like all other credit cards, can be increased only after a 15 day notice when interest rates go higher. A little homework before you apply can save you a lot of dollars later.
Cheap Credit Cards: How Cheap Are They?
Is a cheap credit card really cheap? There are precautions that must be observed in looking at the cost of your low interest credit card over time.
Sometimes credit card issuers offer low interest credit cards with an initial APR of zero. After the introductory period, the interest rate rises to negate the potential financial benefit obtained from the initial offer.
Also be aware of the method your credit card uses to charge interest. Some rate calculation systems like the “two cycle” system may be costlier than you bargained for.
Low Interest Credit Cards: A Take-Home
1) Low interest credit cards are optimal for those with good credit
2) Find out which credit card is in sync with your needs, taking into account the carrying cost (APR) as well as rewards
3) Be aware of hidden details in your low interest credit card to avoid getting surprised
4) Use good financial sense once you have acquired your card.
The Truth About Low Interest Credit Cards
Low interest credit cards are wonderful if you can get your hands on one. They offer great rates so it is easier to pay off your balance in a timely manner.
These cards are perfect for those making large purchases on their credit cards, or even those that use their card for everyday purchases. If you are researching low interest credit cards, consider these factors during your search.
Credit Score
To qualify for low interest credit cards, you have to have great credit. There are several scores that fall in the “excellent credit” and in the “good credit” groups in terms of the credit bureaus. If your credit score falls into either of these groups, you will most likely qualify.
However, if your score does not fall into these groups, you will most likely not be able to get any low interest credit cards. These cards are for the lowest risk cardholders, which are those with nearly flawless credit score.
Common Rates
For those that do qualify, low interest credit cards offer great rates. The most common rates fall between 9% and 15%.
These cards are great when you need to make large purchases, because although your balance may be high, you will not be charged as much interest on it as a normal credit
card would charge. The lower rate you can find the better. So, be sure to shop around before committing to a card.
Introductory Offers
Low interest rate credit cards offer some of the best introductory offers out there. Many of the low interest rate credit cards offer over a year with no APR.
This is an amazing opportunity for cardholders to charge without any fees attached. Card companies know that people who own these cards usually keep paying off the balance, even without being charged APR, so it is still profitable for them to offer this plan.
Fees
Very rarely are there ever annual or enrollment fees on low interest credit cards. These are the top of the line credit cards.
Therefore, to charge unnecessary fees would deter cardholders from applying.
If you do run across a card that charges an annual or enrollment fee and you have perfect credit, you need to look elsewhere for your card.
Those with great credit should never pay these fees, for they are intended for high risk cardholders with bad credit.
Low interest credit cards can be extremely helpful when it comes to your credit card finances. The less amount of interest you have to pay, the better off your finances are in the long run. Be sure to research your low interest credit card choices before applying.
Some cards may give you
the low interest rate for the first few months and then raise it dramatically. As long as you are informed about your credit card, you can make wise decisions.
Low Interest Credit Cards – Help for Debtors
Low interest credit cards are an ideal choice for those who are looking for the much needed financial flexibility to become debt free.
Many of you many wonder how low interest rate credit cards can help get you out of debt, when it appears on the surface, that most credit cards seem to help get people into debt.
But if used wisely and with discipline, these type of cheap credit cards can provide the right kind of financial assistance during any tough financial crisis.
How Can I Get Out of Debt with Low Interest Credit Cards?
You need cash immediately to get out of the debt created by high interest credit cards but you have no option to raise the money right? What if a company offers low interest credit cards as low as 0% APR as an introductory offer?
And, what if they give the option of transferring your card balance from your high interest rate credit card to your low interest credit card? Yes! You would probably consider it a windfall because it can really help bail you out of your current financial situation.
If you are wise, you can make great use of such low interest credit cards to assist you in paying your outstanding debts. There are several credit card companies offering their service at unbelievably low rates.
The truth of the matter is that these type of cards utilize different promotional offers in order to rope in new customers, but also to retain existing customers as well. You definitely should not need shy away from this type offer because of outstanding debts.
In fact, these types of low interest credit card offers are tailored uniquely for your circumstance. The competition among credit card companies is so high that there will be several companies willing to do business with you irrespective of your financial situation, good credit or not so good.
The greatest advantage of low interest rate credit cards is obviously their low APR. It allows you to save a lot of money on interests.
The savings from these types of cheap credit cards should be used to aggressively bring down your outstanding card balances.
Remember, it is the balance on credit cards that gets you in trouble. So, you should try to get rid of it as quickly as possible.
You might think that by making a small payment that you are at least paying something, however, it does not solve the problem as the principal amount actually grows if you only make small or minimum payments.
Financial Discipline
Some people use low interest credit cards as a license to overspend as the APR is so low and cheap. But nothing could be further from the truth.
Low interest rate credit cards alone cannot get you out of debt traps. Strict financial discipline and proper financial planning is necessary for it. Low interest credit cards can then act as a booster or catalyst to solve your debt problems.
To avoid further debt traps, you should aggressively pay down the low interest credit card and utilize the card for additional purchases only if you can pay off both the new purchases as well as the existing debt payment.
Remember, however, that if your card balance is large, it is best not to charge additional items on the card. You should focus on paying down the balance before incurring additional debt.
Things to Remember
Before applying for low interest rate credit cards, you should thoroughly assess your current financial situation. Keeping your personal financial situation in mind, you can mindfully search for the different types of low interest credit cards.
Most people obviously want to transfer balances of high interest credit cards to low interest credit cards, and this is a very good option as it can save substantially on finance charges.
Make sure that transfer fees or other miscellaneous fees that might be involved do not negate the savings captured by a low interest card.
Some cheap credit cards might have high interest rates that are applied to balance transfers, but lower APR’s on an ongoing basis, while some low interest rate credit cards only give introductory rates for a specific period of time.
Before selecting any one of the low interest credit cards, get a clear idea about the introductory rate, balance transfer rate, cash advance rate as well as the ongoing long term APR.
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