People seek out low interest credit cards because they just do not want to pay the high interest charges on cards with huge APRs. The problem is that the majority of the population fall in the fair to bad credit score categories and so few people really qualify for low interest credit cards.
If you believe that your credit score is up to par you can begin your search for low interest credit cards by searching trusted sites online where you can compare the various credit cards available. The internet makes this process as simple as possible. You can do side by side comparisons of the best cards on the market, read customer reviews for each program and when you have made up your mind you can even conveniently submit your application online.
There are some things you should know about the rates on these types of credit cards, the points below will address some of them.
What ís Low Interest Credit Cards?
A low interest rate credit cards are just what their name suggests. These people charge low rates of interest (APR). This is calculated in the same way as with other credit cards; this facilitates a fairly easy comparison for an individual who is planning to switch over to these cards. Reduced interest charge cards are favored by people who habitually carry their monthly bank card balance forward. Low interest levels can lead to significant cost savings on financial charges.
How Low Interest Credit Cards Work?
With regard to the introductory period, most low interest charge cards offer 0% APR; yet , most credit cards offer 0% APR only for choose situations such as balance transfers and major buys. The introductory period offer can be used for consolidating multiple credit cards that charge high rates into a single low APRIL credit card. This helps people to reduce the financial charges associated with bank card debts and pay off the existing balances quickly.
Often, low interest rate rate credit card companies will postpone the balance transfer cost after a client’s demand. Thus, low interest rate cards with rates that can be up to 9 percentage points below those of other playing cards are an easy way of saving for those inveterate shoppers who invariably finish up with a monthly balance issues credit cards. It is also less taxing to take a cash advance with low interest credit credit cards. Individuals with the scores may find themselves ineligible for low interest credit cards.
Low interest credit cards may or may well not offer other advantages like cash back and travel insurance and really should therefore be used with another card that does. It will help a credit card user to earn benefits from the other cards which he may use when he does not want to keep a balance; for other purchases, the lower interest credit card can be taken. It is a good idea that the oldest extant credit card account that an individual has must not be shut for acquiring a minimal rate credit card; this is because maintaining credit company accounts for long periods reflects well on the credit ratings.
There are several low interest credit cards available for sale. Individuals should do a thorough research to find a card that provides a perfect fit for their needs.
Low Fixed Rate versus Low Introductory
There are two types of low interest rate credit cards. The first of the low introductory APR which means that the low interest offering will only last for a while after which the rate will be increased to a standard rate. The second is fixed low interest rate cards where the rates will remain the same for the life of the account.
Those with a good credit score are the only ones who will qualify for the fixed low interest rate cards. They can then use the card to further boost their credit score. Cards with the low introductory interest rates usually offer the promotion for six to twelve months. These offers help cardholders save money, consolidate debt and improve their credit score.
Things To Consider Before You Pay An Annual Fee
Low interest credit cards are especially attractive to consumers who are unwilling to or unable to pay off their monthly balance on their credit card accounts. Today the majority of low interest credit cards do have an annual fee but still there are a few no-fee options so before you sign up for that card with the annual fee you need to ensure that the rewards are worth it. In addition to the lowered interest rate the program must offer some other tangible benefit to you the customer to justify the fee. The benefits could be in the form of reward points, travel protection, discounts or some other benefit. Below are five things to consider before you pay an annual fee.
Are you satisfied with the benefits offered?
If you are getting a lower interest rate that is fixed and not a promotional gig that only lasts for a period then it might be worth paying an annual fee if you plan to use the card a lot. In other words the money that you save on paying interest rates should be more than any annual fee that you are forced to pay. Other rewards that make paying an annual fee worthwhile include flexible payment options, concierge services, travel protection, extended warranties on your purchases or any other reward that will fit your lifestyle.
Will the rewards offered fit your lifestyle?
If the rewards are not being used then it makes no sense to pay an annual fee to get them. Too often consumers sign up for rewards that they thought they could use but never do. Sometimes the rewards may have been beneficial for a specific period in their lives but things change and they can no longer put the rewards to good use. If you are paying an annual fee and not using the rewards that come with the program because they don’t suit your lifestyle you can call up the lender and see if they can provide something else that suits you. If they are not willing to bend close the account and find one that can provide the rewards that you need.
Does the program make it simple to redeem the rewards?
If you have to waste a lot of your valuable time trying to figure out how to use the rewards then they lose value. The credit card provider should provide details on when and how the rewards can be redeemed. They should also let you know how much points you need to redeem specific things. They should be willing to go out of their way to make it easy for you to redeem the points that you earned. Being bogged down with all the terms and conditions for redeeming your points makes no sense and you should avoid providers who make you do so.
What about hidden fees?
Deals have a way of looking attractive on the surface but when you get down to the details they do not look so appealing. If you are forced to pay a fee in order to redeem your points then you should avoid it. If you have to meet certain conditions to get your rewards it does not make sense. A few culprits include airline credit cards where you have to pay to redeem miles or reach a certain amount in order to have your cash back rewards issued. Read the terms and conditions carefully to find any hidden deals.
Did you do sufficient research?
In your search for a new card you should never jump on the first one that looks great. Compare various cards to see if you can get the same rewards on another card that will charge a lower annual fee or none at all. Visit comparison sites to locate a few options, call up the customer service departments to get clarification on things you don’t understand and read consumer reviews.
If you already own a rewards card check frequently to ensure that you are still getting the rewards that you signed up for. Credit card companies could change rewards at will and they won’t go out of their way to let you know. If you do find a card that you want but it comes with an annual fee you can always call up the credit card company and ask them if they’re willing to waive the fee. For all you know they just might be willing to go the extra mile to secure your business.
Before You Apply For Low Interest Credit Cards
Again, low interest credit cards are usually only given to those with good credit scores. Check your FICO score and payment history before you apply. Make sure that there is no damaging information on your records and if you find something then you must get it cleared up before you apply. If your score comes in below 600 then it is considered as a bad score and your application will be denied for the credit card.
With a low credit score you can apply for a secure credit card and try to rebuild your credit. After you have taken the steps to do this you can then consider submitting an application for the low interest credit card of your choice.
Low interest credit cards are wonderful but they are not for everyone. If you are unable to get one then you need to focus on rebuilding your credit and paying off your credit card balances monthly to avoid high interest rates. When the time is right you can submit your application for the credit card and have it work for you.