There are several credit card companies that offer low interest
rate credit cards. However, along with low interest rates, the
best credit cards offer combinations that include low interest
rate on balance transfers and purchases, 0% introductory APR for
a fixed period of time, low or no annual fees, cash back
percentages that vary from 1% to 5%, reward programs, and/or
reduced cash advance fees. A good low interest credit card
strives to keep the user's cost of borrowing as low as possible.
If a low rate credit card assesses a hefty transaction fee, it
offsets any benefits that may have otherwise accrued to a
cardholder.
The credit rating of an applicant is taken into consideration
for deciding the time period of the introductory APR of 0% and
the balance that it will be applicable to. People with excellent
credit rating can avail the lowest interest rates that a company
offers. The cash backs can be had at places such as
supermarkets, drugstores, and gas stations.
It is useful to compare the fixed/variable interest rates
applicable with the various credit cards after the introductory
period. Fixed interest rate credit cards often offer better
value to the users. Factors such as the length of the grace
period, late fees, etc. should be compared for low interest rate
credit cards. There are several online resources that offer
detailed comparisons and reviews of low interest credit cards.
These should be referred to get an idea regarding the type of
low interest credit card best suited to an individual's
requirements.
A good low interest credit card from a reputed credit card
company is universally accepted. Low interest credit card offers
from companies such as Discover, Chase, HSBC, First Premier, and
similar companies are considered to be among the best.
An important aspect to be aware of is that the simple interest
rate advertised may not be the effective interest rate. The
effective interest rate is a compounded interest rate inclusive
of annual fees, if any. Also, it is important to ensure that the
low rate of interest is not liable to change any time soon. In
order to avoid signing up for a credit card that is not really a
low interest credit card, it is best to read the fine print
carefully and ask questions before submitting the signed
application.
Switching to a low interest credit card can help save hundreds
of dollars for individuals who are in the habit of carrying a
balance each month. Credit cards that offer a 0% interest rate
on balance transfers offer an excellent opportunity for settling
credit card debt without having to pay interest on it.
An important indication of a genuine low interest credit card is
that it will not charge any superfluous fees such as enrollment
fees from applicants with perfect credit; such fees are usually
reserved for high-risk applicants with bad credit.
About the author:
Samuel Petry recommends you visit Credit Card Assist to learn
more about
low interest rate credit cards.
