Low interest credit cards are credit cards which charge a lower than average annual percentage rate (APSR) for purchases, both on a permanent or a temporary basis. If you qualify for low interest credit cards you will be charged less interest, making it easier to carry a low balance. They are available to everyone, just as standard credit cards. They can be used anywhere regular credit cards are accepted, and many people choose them for their everyday credit needs. There is no application fee and there are no fees for balance transfers.
The low interest rate is what makes these types of credit card so appealing. It allows you to pay off your debt in a shorter amount of time because the interest rate is not high. This can save you hundreds of dollars per year, if you make your monthly payments on time and not overspend. People with poor credit history will find it difficult to get standard cards because of their past debt and bad credit history.
Balance transfers are a good option for people who qualify. Balance transfers can allow you to free up cash each month by lowering your monthly payment. If you have more debt than you can handle, a good option is to take a vacation and pay at a local hotel instead of using your credit card to pay for your stay. You can then transfer the balance from your credit card to a local hotel credit card to continue paying off your balance.
Another option for low interest credit cards is an ongoing APR balance transfer offer. Balance transfers can help you to reduce your debt. In some cases, you may be able to get a zero percent introductory rate on any new purchases you make. In other cases, there are ongoing fees associated with your balance transfer. Look carefully at any ongoing fees associated with balance transfers to make sure they won’t add additional cost to your monthly payment.
Look for low interest credit cards that offer balance transfers that only charge a one time interest rate. If you know you will be repaying your credit card debt over a long period of time, then look for cards with longer amortization periods. For most people, these long-term payments are easier to maintain. If you have a short term or emergency need for cash, consider making purchases with your balance transfers at a later date when available cash will probably be more available.
The next thing to consider when comparing low interest credit cards is whether or not the annual percentage rate is fixed or variable. Fixed rates are usually a bit lower than their counterparts in variable interest rates. However, if you choose a card with a low interest rate, you may end up paying more if the interest rate drops later on. If your goal is to build credit, it is important to make purchases each month regardless of the interest rate. By making purchases with your low interest credit cards each month, you will pay down your debt and gain more control over your finances.
Another thing to consider when comparing low interest credit cards is whether or not the introductory 0.xx% APR term actually has an expiration date. Many introductory 0.xx% APR periods run out after a few months, so you should determine whether or not you will realistically be able to make purchases during this introductory period. If not, you will want to keep looking for better deals. Some low interest credit cards offer a shorter 0.xx% APR term; in other words, the longer the 0.xx% APR term, the longer you can keep the introductory rate. You can also try to find a zero APR balance transfer offer. However, remember that these offers will still likely be beneficial even if the interest rate increases after the introductory period ends.
In general, it is important to make low interest credit cards work for you instead of against you. You may be stuck paying higher interest if you choose to carry high balances onto your new card. If your balance hits its peak, however, you will likely pay significantly less than if you had kept your balance at zero before the introductory 0.xx% APR period. Another thing to consider is how long the 0.xx% APR term is likely to last. It is possible that you could be out of pocket by the end of the introductory period if you carry a balance and do not use any special offers to lower your balance. As such, consider all of these factors before choosing your low interest credit cards.