Credit card companies have come up with all types of schemes to attract consumers. It's a cutthroat competition so it is very easy to come across a low interest credit card. Having a low interest credit card lets you enjoy a number of benefits. As a precaution, you should read the credit card terms and understand what is being offered to you. Do not sign without knowing what exactly you are signing up for.
Your credit history is the determining factor for the interest rate you can get for your credit card. The better your credit history, the lower the interest rate that will be levied on you. If you have some minor bad history, you can still have a lower interest rate than what you are currently paying. It is worth doing some research about these cards.
Many people all over the world carry a balance on their credit card every month. In such a case, taking a low interest card can save you significant amount. If you intend to pay the balance completely as soon as possible, a low interest card will help you do this faster. Some of the major credit card companies even give you 0% interest benefit if you transfer your credit balance to their low interest card. If you can subscribe this, you can have your credit paid very quickly.
You may be one of those who are able to pay off entire credit before the due date each month. A low interest credit card can benefit you in this case too. You can never be sure that you will be able to clear off your credit every time. If an emergency strikes, you might not be able to pay off your credit on time. So in such a situation, having a low interest credit card could be a great source of help because you can use it for emergency purchases.
If there are advantages to low interest credit cards, there are disadvantages too. Your 0% interest rate may only have an initial term of six months. After this period, the interest rate rises and sometimes this rise can be substantial. If you can pay off your credit card during the initial period, a low interest credit card is a good thing to have. However, if you are not able to clear off your credit by the end of the initial term, your monthly payments will become hefty. This will offset the benefits that you have gained during the initial time frame. Although it is mandatory for the issuer companies to notify you when your 0% interest rate is about the end, it is better to be vigilant. You alone would be accountable for your credit card debt.
The first thing you should do when your credit card bill arrives is to check for errors. If no errors are found, pay off the entire amount if possible. This can greatly benefit you since you can save big time on interest rates. One thing you should avoid doing is pay just the minimum amount, which his usually 3% of your balance. The interest will keep on accumulating on the remaining amount and gradually will become a big amount. That amount you could have utilized to pay for your car or a vacation. Use a low interest credit card to save hundreds of dollars each year.
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