Posted by admin on Aug 18, 2010 in Articles | 0 comments
Some card companies offer low interest credit cards as a means of attracting customers, but believe it or not, these cards aren’t perfect for every person. It comes down to how you use your cards that will determine which is best for you.
Low interest cards may be appropriate for someone who tends to carry a balance from month to month. For these people, the lower interest rate will reduce the amount of finance charges they pay. Keep in mind, however, that some cards charge a very high annual fee in order to cover up for the low interest making it a must for you read disclosures carefully.
Also, the low interest rate may end if you make a late payment, either on the card itself or on another card. This “universal default” clause, where your rate on one card goes up if you’re late on another, unrelated payment, has come under fire recently, but it’s still in many contracts. If you sign one of those contracts, you could find yourself paying the default interest rate—which can be s high as 30%—instead of the advertised low rate. Your only way out at that point may be to close the account and find another low rate card, if you can.
Low rate cards typically do not offer any “extras”, like air miles, cash back, insurance, or rewards points. If those are important to you, you’ll want to compare offers to see which ones provide the features that matter most to you. Affinity cards that can benefit your alma mater or favorite charity are also available. However, you need to check the annual fees as well as the interest rates. Giving to charity while needing a loan to make your credit card payment doesn’t make much sense.
If you don’t carry a balance every month, a low rate card won’t save you much money. You’ll want to compare credit cards on the basis of annual fees, grace period (the time between when the statement is prepared and when the payment is due), affinity, or rewards.
However, there are times when a really low interest card makes sense. Can you open one of these cards and invest the money at a higher rate? Zero-percent cards can make sense in this instance — if the credit card checks are also charged at zero percent. Read the fine print. Purchases or investments made with the checks sent along with your card are not always at the same interest rate as those made with the plastic itself. And don’t forget, you still need to make the minimum monthly payments on time until you cash in your investment and pay off the credit card.
Low interest credit cards can be quite beneficial for two-thirds of Americans who carry balances. They can utilize that low rate to reduce the total interest charges paid while trying to clear the principal balance.
As things like interest rates can change, you have to regularly compare credit cards and look for the one that would suit your present situation. A number of card issuers operate today, and as long as youy payments are on time, you have unlimited options should you want to change.
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Posted by admin on Aug 6, 2010 in Articles | 0 comments
Comparing low APR credit cards to all the 0 APR Credit Cards can be a long and troublesome chore and you may still have problems deciding which one to choose from. When you see all of the various incentive programs, rewards, and, of course, the 0 APR feature you may think you should jump in and get that card before the offer expires. But are the benefits really worth the price you will have to pay after the introductory offer expires or are low APR credit cards instead a better choice?
First, look at the incentive programs offered by the various companies. If you do not travel all the time, then one with rewards of air miles is one you can ignore, and so on and so forth. If you are just trying to decide on a regular credit card without all the free incentives that you can earn and you just desire to learn if low APR credit cards or 0 APR Credit Cards are better, then you can now compare these two types of offers.
So ask yourself these questions:
-Do you wish to have a credit card to purchase something expensive that you cannot afford without putting it on credit?
-How long will the 0 APR last?
-After the introductory period ends, how will the APR change?
-Are there membership fees, annual fees, etc…?
If you really need to buy something expensive then the 0% APR can look very appetizing, however if you will not be able to pay off your purchase by the end of the introductory special, you may learn that you will be paying more in the long run with higher interest rates. If you buy something expensive with a low APR credit card, of course you will have to pay interest, but the APR will not rise drastically after the introductory special. This can make a big difference if you do not pay off the debt within the timeframe of the introductory offer only to be left with a much, much higher APR to pay off. The low APR credit cards have the advantage of a sustainable APR and may even save you more money over time.
Remember, the introductory special will not last forever, most credit cards companies have introductory APR offers that last from 3 months to as long as 15 months. Then you will go to a higher APR. Therefore, low APR credit cards might, in fact, be a better solution for some consumers.
The best way to decide is to calculate the big purchase that you wish to make, see how much balance you will have left on your card when the special APR is gone and then see if it is still lower than what you will pay with low ongoing low APR credit cards.
Most importantly, regarding any credit card offer, you need to learn to ask questions and read the fine print. Are there any other fees that apply with low APR credit cards? It is always best to choose a credit with lower fees, lower interest rates and of course one that will fit your needs. Low APR credit cards do not change once the introductory time period is over which is a very big plus.
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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 Jun 27, 2010 in Articles | 0 comments
If you are not using low interest credit cards, you may want to ask yourself why. Who would not want to pay a lower interest rate? What is confusing to many consumers is exactly how they can get those low interest credit cards. Do your research; you will find that education will be your finest asset when hunting a low interest rate credit card. Sometimes it is not always possible to get a low interest credit card. For instance, consumers who have never had credit cards before usually will not qualify for a low interest credit card. However, even if you do not currently qualify for a low interest credit card that does not mean you will never be able to get one. If you have a troubled financial past and a bad credit rating, it will probably take a few years before you improve your credit rating enough to be able to qualify for low interest credit cards.
In general, the higher your credit score is, the better chance you have of obtaining a low interest credit card. If you have a good credit rating, you should not have much difficulty qualifying for low interest credit cards. Low interest credit cards are ideal for people with good credit that would like to take advantage of reduced interest rates. Consumers who have low interest credit cards have all the convenience of charging items when they need them, and long term, they pay less interest on those purchases. Having a low interest credit card is a great way to take advantage of all the benefits that credit cards have to offer without having to pay high interest. In fact, low interest credit cards allow consumers who use plastic to save money.
If you do not have a low interest credit card in your wallet, you may be missing out on a great way to save yourself hundreds of dollars per year. If you are the type of consumer who carries an outstanding balance month to month, and so many of us do, you will benefit substantially from having low interest credit cards. If your outstanding balance is $1,000, having an interest rate of 20% versus 10% translates to the difference between paying $200 and $100 per year in interest. The best part is there are many low interest credit cards that offer less than 10% interest, some as low as 5%.
Even doing a balance transfer can pay off assuming the fees associated with the balance transfer are absorbed after you start paying monthly interest on your new lower interest credit card. If you have multiple credit cards, you might consider consolidating balances onto a low interest credit card. You should also try calling your credit card company and negotiating a new, lower interest rate. No matter how low or high your interest rate is when you initially enroll in a program, if you can establish a strong history with a credit card company; you will be in a good position to negotiate a low interest rate. Also, if you are a member of any professional organization, you may qualify for an additional discount on the interest rate. Low interest credit cards provide you as a consumer with all the advantages of having credit cards but with less cost associated with that convenience
Low interest credit cards are cards that are growing by leaps and bounds. And, it can be said low interest credit cards are essential tools for the frequent credit card user. When it is all said and done, there is no doubt, for the wise credit card user, low interest credit cards are an excellent choice.
Art Taylor has been a successful internet marketer for 10 years. He writes articles about credit cards and other topics. For more information or to apply for credit cards visit his websites at: Ecreditcardworld or Eshopperworld.
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Posted by admin on Jun 18, 2010 in Articles | 0 comments
If you’re shopping around for a low interest credit card, chances are good that you already have good credit or you’re looking to transfer high balances. In any case, you need to know a few things before you sign up.
Shop around
If you’re looking for a low interest credit card, you need to make sure that you’re investigating all of the possibilities. One of the easiest resources is the Internet for comparing various credit card companies and how they can help you. You can see many companies at once and then make your decision that way, instead of having to research each one individually.
Read the fine print
Many people don’t take the time to read all of the restrictions before applying for a low interest credit card. While the initial interest rate may be low, there also might be a limited time to enjoy it. For example, many balance transfer offers are only good for a few months or even up to a year. So if you’re looking to pay down a balance by transferring, you want to be sure that you can do it in the limited time.
Balance transfers
Because so many people now have outstanding credit card debt, people are looking for ways to cut down their interest payments. This can mean that people are finding lower interest rate cards to transfer to. And in many cases, these offer much lower interest rates than a traditional card. But these can be short-lived offers and will not extend to the rest of your history with the credit card company.
Have good credit
Another way to find a low interest credit card is to already have a stellar payment history. The companies will see that you are living within your means as well as paying on time, and they tend to reward this kind of behavior. Be timely with your payments and keep the balances low.
Just ask
In some cases, you may be able to turn your current credit card into a low interest credit card by simply asking. Of course, you will have to have a good history with the company that shows that you are paying your bills on time as well as not spending more than you can afford. Call the customer service department and ask if your interest rate can be lowered. It can really be that simple.
A low interest credit card is a great way to start releasing yourself from credit card debt, but sometimes it’s just better to not get into that situation at all.
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