Low Interest Credit Card - is It for Me?
A Credit Article Contributed by Priya Katyal
Low Interest Credit Card - is It for Me?
You may be a person who is carrying many credit cards or a new customer applying for a credit card and wondering whether this low interest credit card is for me or not. Whether you choose to stay with your current credit card or you choose to opt for a low interest credit card totally depends on how you pay or how you intend to pay for all your bills. Choosing a best credit card which suits your needs can be really time consuming and terribly confusing.
Especially when there are so many credit card offers available for you to choose from, it can really be hard for you to select one that suits you. If you are in habit of paying your monthly balance in full then the best credit card for you would be rewards credit cards. A low interest rate will not be of any advantage to you because when you pay your balance in full you will pay little or no interest. So the remuneration offered by rewards credit cards would be best for you.
But if you are a person who tends to carry a big balance every month, the best credit card for you is the low interest credit card. You can save a lot of money by using a low interest credit card on your monthly balance in interests.
Fixed or Variable Low Interest Credit Card
Low interest rate credit card can either come with a fixed interest rate or a variable interest rate. In a fixed low interest rate credit card the rate of annual percentage rate is fixed for a period of time. On the other hand in a variable low interest rate credit card the rate of interest varies over a period of time. The introductory rates offered are usually for a fixed period of time.
Major credit card issuing companies offer a low "introductory" rate that will give you a low interest rate on a credit card for only a short period of time, usually 6 months. After that time the low introductory rate goes up to a higher fixed interest rate. If you can't pay your balance before the fixed period expires then you should apply for this card, as it actually cost you more in the end.
On the other hand, if you can pay off the balance before the fixed period of introductory rate expires, then credit cards with low interest rate can actually save you money.
Other Benefits of Low Interest Credit Card
There are many benefits of low interest credit card apart from bearing a low interest such as 0% or very low interest balance transfer fee, cash advances or withdrawals with interest free period and low fee, personal identification number which you use for cash withdrawals from ATMs, lower late payment fee and much more.
If you have a good credit rating then you can certainly apply and get approved for low interest credit card and if you don't, then you may find it somewhat difficult. But in any case you should get online and compare different low interest credit cards before selecting the one that fulfills your requirements.
