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Low Interest Credit Card Offers

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If you listen to the experts, they'll tell you that a low, fixed-rate card is better than a variable rate credit card that starts low and then slowly creeps up its interest rate every year. The difference is that fixed rate credit cards tend not to have jumpy rates as much. And if a card company does decide to raise a fixed rate card, they have to tell you first. With a variable rate card, the rates do tend to move a lot, and the credit card company does not have to warn you when they do.

Right now, you're probably waiting for one thing—how you can get your hands on one of those prime fixed rate credit cards! It's one thing to understand how much better an idea they are, but it's a whole better thing to actually have one in your wallet. But hold your horses. There are some other factors that you need to consider before you jump on the fixed rate bandwagon.

First, think hard and honest about how you use your credit cards. Do you keep debt on them one month to the next, or do you tend to pay off the entire balance every month? And remember, we said be honest. Because if you lie to yourself—and say you'll pay off your payments every month, and then don't—you could end up with a very bad credit situation, whether you're interest rate started low or not.

Plus, don't just jump into a fixed rate card because that flyer in the mail said it was great. Credit card agreements are very complicated things. They can include, in the very fine print, pretty stiff penalties if you are late on one payment, for instance, or go over your balance once. In that case, they could jack up your low rate, and turn your card from fixed rate to variable, just like that. So before you agree to anything, speak with a person at the credit card company and get all the facts about the card.

A big detail that you should ask about on your new cards, especially the ones with low starting interest rates, is: when does that great interest rate expire. Even you act squeaky clean with your card, never make a late payment, and never go over your balance, chances are, that low interest rate, whether fixed or variable, will jump up after a set amount of time, say like six months. It's important to know that, because another card may give you the low introductory interest rate for 18 months.

Low Interest Credit Card Offers

Many credit cards have a APR of 18% or more. A new breed of low interest credit cards on the market is offering rates as low as half that of your average credit card. If you typically don't pay your credit card bill in full each month these cards can save you money in interest payments. If your credit card debts are long term you may find your can substantially cut your interest charges and ensure more of your repayments go towards paying off the principle debt.

Low interest credit cards do have one downside. This is that you won't receive any reward programmes such as frequent flyer points. Reward schemes are perks associated with credit card use. For example you can earn 1%-5% credit on every purchase you make with a higher interest rate credit card. If you use your card frequently this can add up to substantial savings and reduce your overall payment to your credit card company.

However, if you do not use your credit card for many purchases this may not be worth it. Another consideration is if you regularly make rather small purchases. This means that rewards may not be benificial to you. In this case a lower interest credit card might offer the best credit card rate for your needs.

If you make larger purchases then rewards may be the best thing for you, as the 1%-5% credits on each purchase will save you a considerable amount of money. Therefore, reducing the cost per purchase and reducing the amount of money you owe to your credit card issuer. The savings may very likely offset higher interest rates and make a lower interest rate credit card not very practical.

If you are in the habit of paying off your credit card debts monthly you may want to consider the pros and cons of low interest credit cards. What you gain with low interest, you will lose with reward benefits. If you pay your credit card debts on time you will not be paying much interest, if any, and the lower interest rates will not really benefit you. However, the reward programs will benefit you on every purchase.

You can make fast comparisons of low interest credit cards on line and by this means get the best credit card interest rates. There are many websites available which show the different credit cards and what they are offering you. They compare credit card features and rates side by side allowing you to make an informed decision.

Now that you are aware of the advantages and disadvantages of low interest credit cards you can make an educated decision as to whether this type of card will work for you. Review your requirements and think about your spending patterns. In this way you will be able to make the right decision on which credit card will be best for you and your needs.

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About Author

Both Joshua Shapiro & Richard Greenwood 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.

Joshua Shapiro has sinced written about articles on various topics from Credit Cards, Green Card and Credit Cards. . Joshua Shapiro's top article generates over 27100 views. to your Favourites.

Richard Greenwood has sinced written about articles on various topics from Debit Credit Card, Credit Card Offers and American Express Card. Richard Greenwood is Director of Australian finance and credit card website . Click4Credit lets users. Richard Greenwood's top article generates over 135000 views. to your Favourites.

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