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Credit Cards With Low Interest Rates

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One of the ways that credit cards get consumers interested in their credit card products is by offering them low interest rates or low interest rate introductory offers. While low interest rates are great for consumers, do your homework so that you're not surprised with high fees or short term low interest rates that jump sky high after the introductory period is over.

It's hard to turn down a credit card with 0% interest, but as they say, there is no such thing as a free lunch. While credit cards with low fees are great for consumers, banks need to make their money in some way and have a way of finding revenue by adding steep fees and only offering low interest rates for the short term.

For instance, you might sign up for a credit card with 0% interest for 6 months, only to find that at the end of that period, the interest rate jumps to 15%. During the first 6 months, you used that specific card very often thinking you are getting a bargain. Unfortunately, now that your credit card balance is higher than before you will be paying a high interest rate and not getting such a great deal. If you want to avoid high interest rates and high credit card debt, avoid traps such as the one above. Low interest rates are great, but in the long run an introductory offer can hurt more than a stable low interest rate credit card.

Low interest rates that last for more than 6 months or a year are usually given to consumers with the best credit rating. If you have good credit, you can usually count on being offered good credit card rates with low fees, for people with bad or poor credit expect a moderate or high interest rate.

There are instances where consumers can use low or no interest rate introductory offers to their advantage. One is to purchase an item that you have the money for in the bank, you can easily pay it off in six months and don't have to use your savings as it accrues interest. This might work for a high priced TV or vacation. Another instance, low or zero percent interest rates can work for you is if you have a high credit card balance on another card. You can transfer the card to the new card, no longer paying your high interest rate each month. This alone can save you a few hundred dollars over the course of six months or a year.

Credit Cards With Low Interest Rates

Before you choose a credit card it would be wise to first find out the interest rates offered by all the credit card companies and banks. While you compare credit card companies and banks, take note of the ones with low interest rates and offer the best benefits. Don't miss the fine print as that is where the most important information is usually given. Fine prints almost always specify the conditions applied on using their service.

It is generally a wise decision to go with a credit card that has a low interest rate. A low interest rate would almost always mean that using the credit wouldn't eat up your savings.

One of the strategies of many banks and credit card companies to attract members is to offer an introductory low interest rate then hike up the rate after a certain period. It is therefore advisable to inquire how long the initial low interest rate would last.

To switch to them, some credit card companies and banks would waive fees if you transfer balances to them from your old card. The fees asked by banks for transfers are actually interest rates in disguise. Make sure that a low fee, which is equivalent to a low interest rate, is charged to you when transferring or you could end paying much more than you actually have to for clearing your debt.

One thing you could do is pay for balance transfers through pre printed checks. Your best option is to transfer balances to over the phone by calling up the customer service line of the bank or company. Doing such would cost a lot less or nothing at all and because you chose a card with a low interest rate you know your expenses would be lower the next time.

It is al important for you to know that incentives such as short term low interest rate will eventually rise even without due warning from your bank or credit card company.

You could always ask the bank or company to give you a low interest rate provided that you have a decent credit history with the company or bank. If they refuse to give you a low interest rate then you can always switch to a service that offers you a better deal.

Remember to use your credit card wisely. Keep a tab on your expenses while using this card, ensure your dues are cleared regularly and ensure that the low interest rate remain low.

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About Author

Both Connie Barker & Nicky Pilkington are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Connie Barker has sinced written about articles on various topics from History, Finances and Debt Consolidation. Connie Barker is the owner of several financial websites including those which deal with

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