Low interest credit cards do exist in the market so why don’t we get one and make the most out of it? Obviously, a big part of your credit card cost consists of the interest rate. Therefore, not paying the interest rate will save a considerable amount of money from your monthly credit card expenses.
In order to get approved for low interest credit card, good credit is a must. To avoid getting rejected, you need to be aware of the status of your credit history before sending out your application. Order a copy of your credit report and credit score. If your credit score is quite low, do the necessary steps to improve it.
A low interest credit card gives you the option to carry over a balance without being burdened by expensive interest charges. Of course, just because you own a low interest credit card doesn’t mean you should only pay the minimum on your credit card. Paying off your monthly balances in full is still the best way to avoid debt problems and maintain an excellent credit score.
Nevertheless, sometimes you may need to carry over a balance in your credit card. If you’ve charged a large amount in your credit card for a home appliance or an important equipment, then this is okay. Just be sure that you can finish paying off your credit card balance within the next 3 months and not more than that. In such cases, you’ll be thankful that you have low interest credit card with you.
However, not all low interest rate credit cards have great offer. Some of them may have low interest rate for a certain period, but when the teaser rate expires, you may be surprised to find out that the interest rate is much higher than what you pay with your current credit card. Thus, it is up to you to find a credit card that has lasting low interest rates and reasonable credit card fees.
Always remember that the interest rate is not the only cost in your credit card. There are several other credit card fees that you should definitely check on. Even if the interest rate is tempting, don’t forget to ask the following questions:
- How long will the low interest offer last?
- How much will the interest rate be after the introductory offer?
- Is there annual fee? If yes, how much?
- How much is the late penalty charge?
- How much will a balance transfer cost you?
- What is the interest rate for balance transfers and purchase?
- How is your monthly credit card charge calculated?
The actual rates and charges are disclosed in your credit card’s Terms and Conditions form. Read it in full so you can compare your credit card choices not only based on the interest rates they offer but based on their totality.