Posted by admin on Aug 3, 2010 in Articles | 0 comments
Low interest credit cards can look very tempting as compared to the average credit card interest rates of 16%, or even 18% (APR). With a lower interest rate these cards will cost you less if you are not able to pay your credit card debts on a monthly basis. For long-term credit card debts, you will be looking for lower interest rates and these types of credit cards may offer you the best credit card rate, for your needs. You will be saving a substantial amount on your credit card debt as opposed to a standard high interest rate found on most cards.
However, there is a downside to low interest credit cards. This is the fact that you will not be offered any reward schemes. Reward schemes are perks associated with credit card use. For example you can earn 1%-5% credit on every purchase you make with a higher interest rate credit card. If you use your card frequently this can add up to substantial savings and reduce your overall payment to your credit card company.
However, if you do not use your credit card for many purchases this may not be worth it. Another consideration is if you regularly make rather small purchases. This will mean that rewards may again not be feasible for you. In this case a lower interest credit card might offer the best credit card rate for your needs.
If you make larger purchases then rewards may be the best thing for you, as the 1%-5% credits on each purchase will save you a considerable amount of money. Thus reducing your cost per purchase and decreasing the amount you owe to the credit card company. The savings may very likely offset higher interest rates and make a lower interest rate credit card not very practical.
If you are in the habit of paying off your credit card debts monthly you may want to consider the pros and cons of low interest credit cards. What you gain with low interest, you will lose with reward benefits. If you pay your credit card debts on time you will not be paying much interest, if any, and the lower interest rates will not really benefit you. However, the reward programs will benefit you on every purchase.
You can make fast comparisons of low interest credit cards on line and by this means get the best credit card interest rates. There are many websites available which show the different credit cards and what they are offering you. They have reviews and comparisons available to help you make an educated decision.
Now that you are aware of the advantages and disadvantages of low interest credit cards you can make an educated decision as to whether this type of card will work for you. Assess your needs and take a look at your purchase patterns. In this way you will be able to make the right decision on which credit card will be best for you and your needs.
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Posted by admin on Jul 18, 2010 in Articles | 0 comments
Are low interest credit card offers really low?
Yes, all major banks have a few credit cards for people in the prime credit market. These credit cards come with very low to 0% APR. Typically they offer somewhere between 5% APR to 0 % APR for an introductory period. The introductory period ranges from three months to a year. After the introductory period, the interest rate jumps to the current prime rate. You can benefit from a low interest offer by paying a low interest rate for the entire introductory period and save on money. For people using 0% APR credit cards, the credit extended is completely free and you can split a large purchase over a few months without paying any interest fees.
How do you use a low interest credit card?
Low interest credit cards typically come with high balance transfer rates and fees or interest rates higher than the prime rate after the introductory period. Cash withdrawals may also have higher fees. In short, you have to read the terms and conditions pretty carefully. Check for all the fees and future interest rates before signing up. To make the best use of a low interest credit card, you should make large purchases using it and pay off the balance during the introductory period. Yes, you might end up paying a small interest rate but it would be better than taking a store credit for a high interest rate. If you have a 0% INTEREST offer, then you paying nothing for the entire introductory period. Using your low interest credit card smartly during the introductory period can definitely help you to save some money on your large purchases.
0% APR balance transfer rates for low interest credit cards!
Another offer that pretty popular is the 0% APR balance transfer rates. Typically they are standalone offers but occasionally you will find them tagged along with the low interest credit cards. In such cases, you can use move existing high interest balances from other credit cards to the low interest credit card with 0% balance transfer rates and save on balance transfer rates. This will help you pay off your debt quickly and also help you save some money. There has to be a catch to a sweet deal like this, its the high balance transfer fees and high interest rates after the introductory period. Please check these fees and rates to confirm if it would be financially viable to move your debt from other cards on to a low interest credit card with 0% balance transfer rates.
What are the conditions to maintain low interest?
Though the introductory rate might extend for a period of 3 months to a year, the interest rate could be hiked up to a rate much higher than the prime rate during this period. This is typically done if you miss out on any monthly payment or if you exceed your credit limit. To use the benefits of the low interest credit card to the maximum, don’t let any of the above situations occur.
Pros and Cons for switching credit cards?
To take advantage of the low interest credit cards many people switch credit cards rolling over their balances to the new ones in order to keep their interest rates low. This will definitely save you some money and work in your benefit. However switching credit cards might be a long process and frequent switching might reflect badly on your credit report. Typically you should keep some long standing accounts with prime or low interest rates after the introductory period while you switch other credit cards.
Rakesh Nair is an financial expert working in the finance industry for many years. He writes artciles for various topics related to the finance industry. His articles for credit card offers like low interest credit cards are published on many reputed sites.
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Posted by admin on Jul 15, 2010 in Articles | 0 comments
The following article lists some simple, informative tips that will help you have a better understanding about low Interest credit cards. If you find yourself confused about low interest credit cards don’t despair. Everything should be crystal clear by the time you finish reading this article.
Low interest credit cards equivalent to cheap credit cards are considered the most popular credit cards because of the 0% introductory APR (annual percentage rate) offer. This promotional offer can last up to 12 months. If you are planning to pay the full balance off before the 0% intro offer expires, then this offer can be an ideal situation. If you will be carrying a balance each month, then a low fixed APR interest rate might be a better choice. Choosing the 0% intro interest rate might be a mistake if it changes to a high interest rate after the promotional offer expires. This is the reason why it is very important to know what the interest rate will be after the introductory period expires. Customers who decide to go with the promotional offer can use the money saved on interest expense to accelerate paying off the loan much sooner.
Low interest credit cards main benefit is to save money on interest expense. These credit cards are very essential in saving money on interest expense when used to transfer balance from a high interest credit card to a low interest credit card. They may also be beneficial to cardholders who make large purchases and carry a balance forward every month. Doing a balance transfer requires paying a fee; therefore it’s a good idea to shop around for a credit card with the lowest costs. Individuals with excellent credit score can ask to have the fee waived.
Banks and credit card companies competing for the low interest credit card business offer impressive features similar to standard credit cards. Some of these features may include cash back, rewards, no annual fees, frequent flyer miles etc. Therefore, it’s a good idea to compare credit card features to find the card that meets your needs and one that will save the most money on interest expense. Paying your entire outstanding credit card balance on time each billing cycle is the only way to avoid paying interest expense. This may not be financially feasible for many customers due to the fact that they do not have the available funds. Therefore, by using a low interest credit card to make purchases and maintaining a credit card balance will be the next best choice to save money on interest expense.
It’s a common situation for individuals with bad credit to pay credit card companies large fees and finance charges. With this kind of financial problem it can be a daunting task to get out of debt. As you can see, having excellent credit is very important because it makes it possible to get approved for a low interest credit card which in turn will save you a vast amount of money on interest expense. The amount of interest accrue on your account depends on the interest rate you receive. Be aware that credit card companies are able to change the interest rate on your low interest credit card because of late payment or they can change the interest rate for no reason at all. Managing your credit wisely is extremely important for financial success. Make sure to report errors on your credit report to the three major credit bureaus which are: Equifax, Trans Union and Experian to correct the errors on your credit report promptly.
If you are overwhelmed with bills and credit card debts, why not consolidate your loans into one loan. This will save an enormous amount of money on interest expense. It will make monthly payments more manageable and can alleviate the financial problems that come with having too much credit you can’t afford. This is an excellent opportunity to start the process of improving your credit score. Having less credit card accounts will simplifies your life and eventually improve your credit score. It’s much more convenient to write one check instead of writing several checks each month to various creditors. Debt consolidation is an excellent opportunity to keep you out of bankruptcy and get your finances back on track.
Customers should understand the grace period agreement as it relates to their low interest credit card. The grace period generally last between 20 to 25 days. This is the number of days stipulated in your credit card agreement before your credit card company starts charging interest on new purchases with certain conditions. During this period customers do not pay finance charges on new purchases if the account did not carry a previous balance. Also, monthly payments must be received during the grace period time frame. Usually credit cards without a grace period are charged finance charges immediately on new purchases even if your previous month’s bill was paid in full.
The internet is best place to do credit card research and submit online credit card application. The credit card types are organized into categories making it easy to find the credit card you are looking for. Just by clicking on the low interest credit card category will bring up a vast amount of information. Customers with excellent credit can get instant online credit card approval within a few minutes of filling out their online credit card application. Once approved, the customer will receive the credit card in the mail within a few days. This is the fastest and most convenient way to obtain a credit card. Customers should make sure the credit card features fits their lifestyle before submitting an application.
Don’t be surprised when you received your credit card bill to find out that you are paying different interest rates on the same bill depending on the type of transaction you are making. While credit card companies may offer the 0% intro offer for balance transfers, there maybe a much higher interest rate for cash advance and new purchase. This is why it is very important to read the fine prints and pay close attention to your credit card statement. This will give you a good understanding about the miscellaneous fees and interest rates to avoid surprises.
David Hall would like you to visit his website for more information about credit card offers. Customers are able to compare offers and submit online credit card application for online approval. This article is free to publish in its entirety and must include all links back to:
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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.
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Posted by admin on May 13, 2010 in Articles | 0 comments
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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