Low Interest Credit Cards - Points to Keep in Mind
A Credit Article Contributed by Priya Katyal
Low Interest Credit Cards - Points to Keep in Mind
Getting a low interest credit card can save you a lot of money. 0% balance transfer offered by these low interest credit cards is good for people who are not able to pay their credit card bills in time. But there are many things you must take note of before you select a low interest credit card.
Annual Percentage Rate(Apr)on Low Interest Credit Cards
It is the rate of interest which is payable by you on the outstanding balance every month. The annual percentage rate is usually quite high with the ordinary credit cards and it is one of the most important things to take note of when selecting a low interest credit card. The lower the better. After all low rate of interest is the main reason why you are looking for a low interest credit card. You can compare the annual percentage rate of various companies offering low interest credit cards very easily over the Internet.
Annual Fees on Low Interest Credit Cards
The other feature to look out for is, annual fees. It different for different credit card companies and also depends on which credit card you are applying for. You should always check for it before applying. You should always apply for low interest credit cards that has a very low annual fee and annual percentage rates. Usually the low interest credit card carries high annual fees. Therefore, you should always inquire about it before applying.
Application Fees for Low Interest Credit Cards
A processing fee or membership fee is charged when you submit an application for a low interest credit card and usually this fee is included in your first month's credit card bill. These fees are also charged differently by various credit card issuing companies. Most of the credit card issuing companies, if not all, do not charge application fees in order to attract more customers.
Always ensure whether there is an application fee associated with the low interest credit card, and if so, then how much does it cost. If you find it too high then move to the next low interest credit card offering company.
Cash Withdrawal Fees and Interest Rate Offered by Low Interest Credit Cards
Whenever you withdraw cash using your credit cards at ATM's you are not only charged with a cash withdrawal fees but also interest on it. Most of the credit card issuing companies charge a very high rate of interest on your cash withdrawals and the interest is charged from the minute you withdraw it. But there are some credit cards which offer not only lower cash withdrawal fees but also some free period before they start charging interest on your cash withdrawal.
So always look for low interest credit cards which offer lower rate of interest on cash withdrawals if you tend to use this option very often.
Low Interest Credit Cards Offering Introductory Interest Rates
Introductory rates are usually offered by a credit card issuing company to attract a credit card holder of a different credit card issuing company. You can transfer the outstanding balance from your high interest credit card to a lower interest credit card. Introductory rates are also offered on any purchases you make and for those you can pay without being charged any interest or at very low interest for a definite period of time.
