Low Interest Credit Cards – Is it a Good Deal?

If you need a credit card, then perhaps you may be searching for one with the lowest interest rate.  Of course, who wouldn’t want to enjoy a low rate or even a zero rate if possible?   Granted, there are many such offers in the market but before you go and sign up for a zero rate credit card, there are some things that you should seriously consider.

How Long Does the Low Rate Last?

Indeed, you can find credit card issuers that offer 0% introductory APR.  But how long exactly does the introductory period last?  Under the new Credit CARD Law issuers must allow at least six months or longer on introductory offers.  However, after 6 months, you need to be aware of how much the regular rate would be.  If not, you could suddenly be stuck with a credit card that with expensive APR.

[Article:  Tips To Keep Your Credit Card Interest Rate At 0%]

Which Transactions Are Applicable?

There are credit cards that impose more than one type of APR.  Thus, the interest rate applicable for transferred balances may be different from the rate applied on new purchases and cash advances.  Before signing up, you need to be very clear about the specific types of transactions on which the zero percent rate applies.

How Must Is the Annual Fee?

Most credit cards that offer an introductory rate carry annual fees.  Yearly fees can range anywhere from $50 to as much $100 or higher, depending on the credit card.  If you have to pay such cost on a yearly basis, do you still think that it’s worth the deal?  Weigh your options carefully before making a decision.

Keeping Up With Your Payments

A lot of consumers apply for a new credit card with zero interest rate to consolidate their credit card debt.  But before transferring over balances from one card to another, make sure that you have made a suitable repayment plan.  Make it a goal to finish paying your debts while the zero interest rate still applies.

Furthermore, keep in mind that issuers of zero interest credit cards do impose strict standards particularly when it comes to payment submissions.  Missing your due date even for just one day could mean paying high penalty charges.

Finally, do not forget that zero interest or low rate credit cards usually require good to excellent credit rating.  If you only have an average credit score or bad credit, you may not qualify for these types of credit cards.  Therefore, check the credit rating requirement before submitting your credit card application online.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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