If you are looking for some low interest credit card companies, you may want to look for them through your credit union. You may also want to check out credit cards that have a low introductory rate, such as the Capital One Platinum Prestige credit card, Discover More Card, and Citi Diamond Preferred Card.
You can also use our FREE credit card finder to search for a low interest credit card!
Low interest rate credit cards are good choices for those who don’t pay off their full balance every month. When you have a lower interest rate on your credit card, you pay less money towards the interest and can pay off your credit card in a shorter amount of time.
Why are credit unions a good choice for low interest credit cards?
Credit unions are financial institutions that only offer their services and products to their members. The good news is that it is usually fairly easy to become a member of a credit union. When you have an account through a credit union, you actually have part ownership of the credit union.
As an owner, the decisions made by the credit union are beneficial to you, rather than to a random, outside owner. There are a number of benefits to being a member of a credit union according to The Motley Fool. One is that the fees are a lot lower than other banks, if there are fees at all. Members also enjoy higher interest rates on their financial products such as CDs, as well as on their savings accounts.
Another benefit that members of credit unions enjoy is that there are usually lower interest rates on loans. Loans may include car loans, home loans, lines of equity, and credit cards. As a member of a credit union, you will usually be able to apply for credit cards that have lower interest rates than through other methods of application.
For more information about credit unions and how they work, you can visit the website for the Credit Union National Association.
How do low introductory interest rate credit cards work?
Many consumers are drawn to a credit card with an introductory APR rate. There are quite a few credit cards that offer a 0% interest rate for a certain amount of time. These are very enticing, as having a card with 0% interest means that you basically are borrowing money for free.
The catch for many of the credit cards with an introductory interest rate is that after the introductory period the interest rate can jump up quite a bit. The introductory period may be anywhere from three months to 18 months.
Depending on the card, the interest rate may increase to the mid teens or even the 20s after the introductory period is over. This means that if you carry a balance on the credit card, your monthly minimum will jump up and it may be harder to pay and it will definitely take longer to pay off the card if you are only paying the minimum.
A credit card that offers a low introductory interest rate is a good choice for those who want to transfer a balance from a higher balance credit card or for those who want to pay down their balance quicker. The key is to pay off the credit card before the introductory period is over.
Are low interest credit cards easy to get?
Some low interest credit cards have a rewards program associated with it, which means that you earn points every time you use the card. These credit cards are often only available for individuals who have a credit score that is considered to be good to excellent. If you have a history of bankruptcy or your credit score is low for other reasons, you should not apply for the card.
If you have a poor credit history, the cards available for you will often have higher interest rates and will often have an annual fee associated with it. Once you begin to build up your credit again, you will be able to apply for credit cards that offer a lower interest rate.
Begin your online search to compare credit cards with the FREE credit card chaser above!
- What are some low APR credit card companies?
- HFS Federal Credit Union Visa Gold Credit Card
- Why should I look into credit union credit cards?
- Where can I find credit cards with low APR?
- Arapahoe Credit Union Visa Platinum Card
- SEFCU Visa Capital Credit Card
- US Federal Credit Union Visa Gold Credit Card