We all want the convenience and flexibility of a credit card, but we also want to pay as little as possible for credit services. There are credit cards with low introductory interest rates and cards with lower rates overall for premium customers.
Internet based credit card finders like the credit card chaser, help consumers find the best low interest rate credit cards!
Business credit options may offer lower rates than individual credit cards. Prepaid cards offer the advantages of a Visa, MasterCard, Discover, or American Express logo credit card without any finance charges at all!
Credit cards are considered a virtual necessity in the 21st century. Finance charges and interest are the largest and most common fees assessed by credit card issuers. These charges can cost consumers hundreds or even thousands of dollars annually.
What are the advantages of a low introductory rate card?
Many card issuers offer zero percent introductory interest rates to entice consumers to transfer balances from their other credit accounts. These introductory rates last for six to18 months and give cardholders ample time to pay off their existing debt without incurring any finance charges.
Some cardholders have been known to transfer outstanding balances, repeatedly, to other zero percent introductory rate accounts, once the initial interest rate periods expire and interest charges begin.
Another benefit of these low introductory rate cards is that the rate is often extended to new purchases as well as balance transfers, but usually for a much shorter time, only three to six months.
What are the lowest rates available?
The days of low fixed interest rates are gone! Credit card rates are variable and set by adding a mark-up or margin to an index value, usually the U.S. bank prime lending rate, currently at 3.25%. Rates on the best cards begin at 9.99% but over time can increase to 21% or 22%
How much lower are rates on business credit cards?
Business card rates, on the average, are one or two percentage points lower than individual credit card rates. Currently, the average rates for individual cards are between 14 and 16%, while the average rates of business cards fall between 13 and 15%.
How can I avoid paying interest at all?
The best way to avoid paying interest is to avoid borrowing money. Trading in your traditional credit cards for prepaid credit cards is a great way to save money and eliminate credit card debt.
What is a prepaid card?
Prepaid cards began in the 1990s as gift cards. These cards were issued for whatever set amounts of money gift givers were willing to load onto them. Gift cards were originally intended for short-term use and for smaller amounts of money. There were often fees involved, and cards were apt to expire before the recipients thought to use them.
Today’s prepaid cards are far more useful and sophisticated. Most banks provide these cards with few or no fees attached. They make their profits from retailers and other merchants who pay them a percentage of each card transaction.
Prepaid cards offer many advantages in addition to being interest free. For families, prepaid cards offer a way to teach teens the value of money and credit. Cards can be given to younger family members with specific limits. The card issuer instantly and accurately tracks and records all purchases made.
This is of particular importance to older teens, college students, and young adults. Recent changes in the law, due to the Credit Card Act of 2009, prohibit those under 21 from having credit cards in their own name, unless they have an adult co-signer or can prove they have sufficient income to support the payments.
Students, at college and away from home, can have the autonomy that a prepaid card offers while enjoying the convenience and flexibility of a Visa, MasterCard, Discover, or American Express logo card. Parents, in turn, are comfortable and secure managing these accounts from home.
Is a prepaid credit card better than a debit card?
Benefits of prepaid cards may include popular rewards programs. These programs award points, premiums, and even cash back for using a particular card. The more a card is used, the greater the rewards!
Prepaid cards also feature brand discounts and free buyer protection programs. Other services include life insurance and disability coverage, which are available at a nominal cost. 24-hour customer service is also a benefit of prepaid bankcards.
To find the lowest interest rate credit cards and best prepaid credit cards, use a credit card finder like credit card chaser now!