Posted by admin on Aug 27, 2010 in Articles | 0 comments
Today, even more then ever before, it has become increasingly inconvenient and very dangerous to carry large amounts of cash with you where ever you may go. Which makes carrying a credit card a simple way to pay your daily expenses without the hidden dangers of carrying cash.
But, the repayment of your charges is not quite as simple as swiping your card through a machine. Although there are many credit card companies out there that offer low interest rate cards , there are slight differences in the different kinds of low rate cards available which will work differently.
Get a Fixed Rate
As always, you should read the fine print when you are shopping for a low rate, a slight difference is the way a card type is being phrased can mean something completely different. When you are shopping for one, select one with a fixed rate.
Although this does not mean the rate stays the same forever, you do get a warning when the rate changes, often a period of fifteen days precedes the actual change rate. A rule of thumb when selecting a card is that the card with a fixed rate is better than that with a variable rate. A variable rate card has a rate that can change regularly and this can really have an impact on your payments and your wallet.
Credit History Factor
It is not only easier to apply for a credit card when you have good credit history but it also makes it easier for you to choose the best low rate. By looking back at your credit history and spending habits you can get a good assumption of what type of card can benefit you better. The first thing you need to look at is how good you are at repaying your credit card debt.
If you have been late with payments in the past then you should looking for a higher interest rate but a lower late fee rate. This type of card could save you money if you have a habit of making late monthly payments.
A good idea when selecting a low rate is to go through all the fees and monthly payments you will have to face. Besides looking at the interest rate, you should also look at the over-the-limit fees and interest on cash advances you might be forced to make. A credit card with a slightly higher rate but more flexible fees in other areas might be a much better choice for you rather than the first low rate credit card that turns up in your mailbox.
Nick Makaryk: Editor, Publisher, and Founder of Best Credit Cards. A Free Consumer Credit Card Comparison site helps consumers find the right credit card while avoiding high interest rates, charges, and no fees. Compare 0% Interest Credit Cards from Visa, Master Cards, Discover, American Express.
Want to Live Extra Years?
read more
Posted by admin on Jul 27, 2010 in Articles | 0 comments
A credit card can be a wonderful thing, at least if you use it wisely. A low interest credit card in particular has a lot of benefits for consumers. Perhaps you still use your first credit card from along ago and never wanted to get another card. You might be quite happy with that old card you’ve had so long, but as a consumer you may be much better off by getting a new, low interest credit card.
There are a lot of credit card companies out there who would like your business and will offer various incentives to try to get you to sign on. The competition is fierce, meaning you are likely to have little or no trouble finding a low interest credit card. However, as always with a credit card, read the fine print before you send off that application.
Your interest rate will be largely determined by your credit history. The better of a credit history you have, the more favorable the interest rate on your card will be. If you have a few minor problems in your credit history, you might still be able to get a lower interest rate than your current card has. Shop around.
Many people carry a balance on their credit card from month to month. If you are one of these people yourself, you can save a lot of money by switching to a low interest credit card. You can pay off your balance much faster with a lower interest rate. Some companies even offer a 0% rate of interest if you switch your balance over to their low interest credit card. With no interest, you can quickly pay off your credit card.
Maybe you are one of those who always pays the balance on your card before it comes due every month. Even if you are one of these people, a low interest credit card can be very useful to you after all, you never know when something may come up which prevents you from paying before the due date. If this happens, the low interest rate is a real lifesaver.
Are there any downsides to these cards? The initial term of a 0% card or low interest card will generally be six months. After these six months, the interest rate usually goes up, sometimes by quite a bit. If you manage to pay off all of your credit card debt by that time, you will have done very well with this card. On the other hand, if you are unable to do this, you may wind up paying more than you would have otherwise. This can wipe out the benefits you have gained. Credit card companies will usually notify you that your period of 0% interest or low interest is nearing its expiry, don’t count on this.
Always look over your credit card statement for any errors. If everything looks right, go ahead and pay off the whole balance if this is possible for you. Doing so will save you a lot in payments of interest. Do not pay the minimum payment unless you absolutely cannot afford to pay more. The minimum payment is usually around 3% of the total balance, meaning it will take a very long time to pay off the balance and end up costing you a lot more money in the long run.
If you are unsure of anything, or have any questions, don’t be shy about getting in touch with your credit card company to head off any problems.
Nick Makaryk is an Internet Publisher, Copywriter, and Founder of Best Credit Cards A Free consumer credit card comparison site helps consumers find the Best Credit Card while avoiding high interest rates, charges, and fees.
Want to Live Extra Years?
read more
Posted by admin on Jul 6, 2010 in Articles | 0 comments
A host of low interest credit cards is already in the e-marketplace favoring those with a revolving credit – in other words, those who carry a monthly balance. The interest rates on these cards tend to be around 10% while the rates on normal cards could be as high as 16% to 18%. The interest rates offered on these low interest credit cards could be fixed or variable. The fixed interest rate is relatively low in comparison to the variable interest rate. Fixed rate is advisable for those who carry a balance every month. Good credit history is required to get these low interest rate credit cards, which makes it difficult for many potential customers to acquire one.
How Do The Credit Card Companies Make Money?
Low interest rates charged on these cards are compensated in various ways by the credit card companies. Some of it includes, high annual fees, low introductory offer for only a limited period, and high transfer rates.
Searching For the Best Low Interest Credit Cards
The Internet is the best resource to evaluate various low interest rate credit cards. Since the credit card market is cluttered with various options, these low interest credit cards are marketed aggressively. A potential cardholder can negotiate the average interest rate from 10% to 6% if they have an exceptionally good credit rating. In case you have poor or low credit rating, you can negotiate with the credit card company for a better interest rate provided you give enough proof to substantiate steady income and a potential for your earnings to sustain in the future.
A cheap credit card, with low interest rates, helps you to maintain an increased credit limit at a lower monthly credit balance. You also need to consider the annual fee for such low cost cards as, in some cases, the actual interest rate of these cards could work out to be much higher than a regular card. Hence, it is advisable to choose a card that has low or zero annual fees. Most of these low interest credit cards offer 0% Annual Percentage Rate (APR) for the introductory period. However, you need to be careful about the rates offered at the end of the introductory offer as they could escalate to phenomenally high rates after the introductory period is over.
Therefore, it is important to note the fine print in these offers because if various options are not evaluated carefully, it may defeat the basic purpose of obtaining these cards in the first place.
A Low Interest Credit Card Helps Saves Money
Low interest rate credit cards can greatly help in debt reduction and management of credit card expenses, provided care is taken to evaluate the various parameters.
Balance transfer – Attractive interest rates of 5 to 9% are offered by many credit card companies, which enable you to pay off debt at a lower cost. It is wise to consider the 0% introductory offer, though it should not be the primary influencing factor in choosing the card.
Debt Consolidation – Debt consolidation is best done with low interest rate credit cards. It is financial prudence on your part to consolidate your debt using a low interest credit card especially since so many offers are available with little or no transaction fees. Along with incurring lower interest rates, the savings on these transfers can be used to pay off the principal sum. In addition, debt consolidation with cheap credit cards helps to track all your credit card expenses.
Cash Back Programs and Rewards – Many of these low interest rate credit cards in the market, in an effort to lure the customer, offer reward and cash back programs that allows you to earn reward points for every dollar spent on your card. In addition, these cards also collaborate with other merchants like restaurants, drug stores, shopping malls and offer good value for money deals.
So explore all such options before you sign up for the first low cost credit card that comes your way. If you want low interest credit cards to help reduce your debt burden, you must consider its annual fee, rate of interest etc. Low interest rate credit cards that offer rewards and cash back do not really help you reduce debts but they help save money in other ways. So cheap credit cards are only cost effective if you are able to exploit them to your own advantage.
Want to Live Extra Years?
read more
Posted by admin on Jun 15, 2010 in Articles | 0 comments
You need to look for a low interest credit card when it is most likely that you will not be making the payment or only be making partial payment within the grace period or the due date. By using your card what you are basically doing is that you are taking a short term loan without any interest as long as you are paying back this loan within due date. Credit companies allow you to make partial payment and charge a certain percentage as interest on the remaining value.
There are many companies that offer low interest rates. Some of them offer 0% interest for the first few months to attract customers. After the first few months you will be charged a certain percentage of interest. In certain cases the initial interest will be set low for the first few months and people tend to forget completion of the offer period and continue to spend excessively.
Not many are aware that the interest rates vary for purchases and cash advances. Interest on the cash advance is much higher than the interest on purchases.
Initially set credit limit is normally increased after a card holder proves a good credit history. This is to retain a good customer. Sometimes, if you are lucky enough and have an excellent credit history then you might get low interest rate offers.
Whenever you come across a low interest credit card offer it has to raise an alarm in your mind on what the card companies are trying to do to you. They are inviting you to spend more than what you can afford and by offering low interest rates they unconsciously de-motivate you from paying the bills in full. The ultimate benefit is the money earned through the interest value gained. By offering 0% interest rates for the first few months, they not only entice you to sign up but also that you get used to spending without worrying about the interests. You continue to spend even after the offer period, leading to huge monthly bills, ending up in debt.
Statistics show that most card companies earn their profit mostly through the interest paid by their customers and not on their yearly subscription fees
Card companies when they keep their interest rates low, they tend to reduce the grace period for the payment of bills. So it not always that advantageous to have the interest rates to be lower while grace period for the payment of bills is shorter. It really depends on how you would like to use your credit card.
Summary:
Low interest credit card helps you save a considerable amount of money when you have huge financial commitment and cannot meet your monthly credit card bills fully. It may not be that advantageous feature if you are going to pay your monthly bill regularly. Then, what would be highly beneficial here is longer grace period. Keep a close check on your usage as lower interest rates might invite you to spend more than what you an afford leading to bad debt.
Want to Live Extra Years?
read more
Posted by admin on May 19, 2010 in Articles | 0 comments
If you are considering applying for a credit card, you should look towards getting a low interest credit card. A low interest credit card will end up saving you money in the long run, especially if you carry a balance on your card. Some interest rates for credit cards are as high as 18 percent. This amount can be very costly and adds up quickly.
Credit cards are relatively easy to obtain, even if you have bad credit. Everyone should look for low interest credit cards when they are considering applying for a credit card as you never know when you are going to run a high balance. Credit cards are best used for emergency purposes and for quick payment. If possible, you should pay off your credit card balance every month. However, this is easier said than done. Many people do not have the money to pay off the credit card balance every month and end up paying a high interest rate on the money that they borrowed. This interest rate on some credit cards can be 4 times higher than what they would pay if they borrowed the money from a bank off of their home or other collateral.
Generally speaking, you can get low interest credit cards if your credit is good and you have a high credit score. Companies that offer low interest credit cards usually do so for those who are good credit risks and have shown themselves to be credit worthy in the past. A credit card company will look at your credit history and then decide if they will issue you a card as well as the interest rate and any fees. Your past credit history will also set your spending limit. Many companies are eager to procure customers who have a good history of paying their bills and have earned a high credit score.
There are many variables to take into consideration when you are shopping for credit cards. They include looking for interest rates, annual fees and perks from the card. Perks include frequent flyer miles or points that can be used for the card. Take a look at each credit card offer carefully and decide what is more important to you. If you are the type of person who never carries a balance on the credit card, you may choose a card with a higher interest rate and more perks. For most people it is wise to choose low interest credit cards when shopping for credit.
By going to a website that allows you to see the different credit cards that are available, you can not only find a low interest credit card, but a credit card that is right for you. Low interest credit cards are the ideal way to borrow money as they will cost you less if you ever leave a balance on your credit card. As you never know when that can happen, it is wise to look for those with low interest rates.
Want to Live Extra Years?
read more
