Low Interest Rate Credit Cards

Low interest rate credit cards come with a variety of benefits and are geared toward

people who regularly choose to make monthly payments while carrying a balance. Offering lower interest rates for balance transfers and new purchases, these types of credit cards provide a bit of financial relief for a certain amount of time, known as an introductory period, or possibly the entire life of the account.

Low interest rate credit cards are commonly used as an alternative payment option for individuals wishing to finance a large purchase, such as an unexpected repair, a household appliance, or even shopping for holiday gifts. This method of financing enables the cardholder to pay off the balance over the course of several months, without the worry of racking up exorbitantly high interest rates. Low interest rate credit cards are also a great option for helping to pay off high interest debts faster, by taking advantage of balance transfers.

These types of credit cards can offer great options, aside from merely offering low interest rates for an extended period of time; many also provide special introductory rates (ranging from zero to about four percent) up to as much as fifteen months. This introductory rate can then be used for balance transfers, for new purchases, or a combination of both. Once the initial rate has expired, a lower rate than a traditional credit card remains in place for the life of the account. This rate typically ranges from six percent to as high as sixteen percent.

It is definitely a good idea to thoroughly read all of the card's terms and conditions and compare several different options for low interest rate credit cards. You should consider all of the components of these cards before you make your first purchase, or even file an application. To get the very best interest rate possible, it is important to note that you will have to have a credit score that is considered to be "good" or "excellent". That being said, even people with poor credit may still be able to obtain a low interest credit card. It may also be possible to negotiate with your current card issuers to request your present interest rates be lowered.

To give you a better idea of what you should look for when searching for a low interest rate credit card, you must first understand the two different kinds of rates:

Fixed APR: This type of interest means your rate will remain constant for the most part. The issuing card company can only raise your rate after they notify you in writing, in advance.

Variable APR: This type of interest means that your rate will vary as it is set using the prime interest rate. As the prime rate changes, your card's rate will also change. If you typically carry a balance, this change can result in much higher payments.

If you are considering applying for a low interest rate credit card, and you do not typically carry a monthly balance, you may be better off choosing a card with a reward program instead. Interest rates on reward cards are usually a bit higher; however they offer a wide range of incentives such as cash back, free gift certificates, and free travel rewards. Before applying for any type of card, you should first take a very honest look at your current situation in order to assess your needs. This is the best way to get the ideal type of card for your particular financial circumstances.

Low Interest Rate Credit Cards

By: Aubrey Clark

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