If you are looking for a credit card with a low interest rate, you may want to check out Chase Freedom Visa, Platinum Zero Secured Visa Credit Card from Applied Bank, Simmons First Visa Platinum, and Iberibank Visa Classic Card. These are just a few of the available credit cards offered to people with good credit scores.
There are a number of benefits to using a card with a low interest rate, although there are negatives as well. This article will answer some popular questions that relate to low interest credit cards as well as credit cards in general.
What are the benefits to low interest rate credit cards?
If you usually carry a balance on your credit cards, the obvious benefit of a low interest rate is that it will ultimately save you money. Just like any other loan, the credit card companies charge you interest for borrowing money from them. The lower the rate, the better it is for your bottom line and will make it easier to pay off your credit card sooner.
For information on paying off credit card debt and good credit cards follow the link to Suzie Orman’s website.
Another benefit of low interest credit cards is that often they will offer a very low introductory rate that may range from zero to four percent for a period such as six months or a year.
This low interest may also refer to balances that are transferred so that you can move balances from a higher interest rate credit card to a lower one. Many low interest rate credit cards also have no annual fee, which also saves you money.
What are some of the negatives of a low interest rate credit card?
Although having a credit card that has a low interest rate is often a good thing, there are some things to keep in mind that may be considered to be negative. If you choose a credit card because if offered an introductory low interest rate, treat it carefully. Although having a zero percent interest rate on your credit card is very nice to have, once the introductory time period has expired, the interest rate often will increase quite a bit, and it will no longer be considered a low interest rate card.
The period for most introductory offers is anywhere from six to twelve months. During that time, you should do the best you can to pay off the balance during that time. After the offer is up, the interest rate can range from 12 to 23%, and even higher in some cases.
Another possible negative about low interest credit cards is that most of them are basic cards. They usually do not have the perks and bonuses of other cards such as rewards credit cards. If you have a credit card that has low interest, you probably won’t be able to earn points or cash back.
When you are shopping for low interest credit cards, be aware that the interest rate highlighted is often the lowest possible interest rate available and does not necessarily mean that it will be the interest rate you have. The interest rate for your credit card is based on your credit score. If you have good credit, you are eligible for the lower interest rate, but if your credit is not very good, you will be charged a higher rate.
Also, keep in mind that the credit card company can increase the interest rate at any time if it is a fixed rate credit card. If you started with a low interest credit card, it may not end up being one.
Where can you find low interest credit cards?
There are a number of ways to find a credit card with low interest. If you belong to a bank or credit union, speak with a representative of the financial institution to see what types of credit cards are available, as they often offer cards with lower interest rate.
Searching for a low interest rate credit card online is another easy way to find a good credit card. There are many sites, such as this one, where you can compare a number of credit cards at one time. Always look at the terms and fine print carefully before deciding on a credit card.
Make sure you always take the time to find credit card providers with low interest rates, and compare which providers work for you!
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