Low Interest Credit Cards: Suit Every Necessity

As the name suggests, low interest credit cards offer great rates, making it easier for you to repay your balance timely.  These cards ideally suit those who prefer making large purchases with their credit cards or use credit cards for routine purchases.

There are various products available in the category of low interest credit cards.  Some of them are Balance Transfer Credit Cards, Reward Credit Cards, Instant Approval Credit Cards, Cash Back Credit Cards, Airline Credit Cards, Business Credit Cards, No Fee Credit Cards, Student Credit Cards, and Prepaid Debit Cards.  All these types of credit cards have a low interest variant.   You can choose one, depending on what is your necessity.

Low Interest Credit Cards: Look Before You Leap - Many banks and lending institutions are issuing low interest credit card products.  Of the whole lot, you need to choose the one that will work best for you.  Many credit cards offer an introductory interest rate that can be as low as 0% on purchases within a year of availing the card.  Banks such as Citi-bank, Chase, and American Express offer a variety of cards, of which, some incorporate the feature of introductory low interest rate offer.

However, once the period of the introductory offer expires, you are subject to a purchase of Annual Percentage Rate (APR) on the so-called low interest credit card.  APR on these cards can be high or low depending on your credit score; generally, the lowest APR for such credit cards is 9%, however, some cards offer APR of as low as 5.5%.  You need to look at the letters ‘V’ and ‘F’ while looking at an APR. ‘V’ stands for ‘variable’, meaning the rates are subject to change; ‘F’ refers to ‘fixed’, which means that the APR will continue to remain at the current levels.  It is advisable to get a credit card with a fixed APR rate, as the fluctuations in ‘V’ category can feel heavy on the pockets.

Mostly, the credit score of the consumers determine the APR of credit cards.  If you have excellent credit records, you will easily get true low interest credit cards.  Those who easily qualify the criterion are charged interest rates varying from 9% to 15%.  Hence, these low interest cards offer attractive savings if you need to make big purchases.  Even if you fail to pay your monthly dues and end up accumulating a large balance, you will not be charged as much interest on it as a normal credit card would charge.  Therefore, compare various options for low interest credit cards carefully before make a final move.

You can get a good deal and low interest credit cards even without good credit scores if you look out for all the available options.  All you need to strike a good deal is prove the lender that you have a regular source of income.  If you are successful obtaining your income proofs, the lenders tailor their products to suit your necessities and specifications.

In this case, you have to be careful of one thing.  The banks generally put customers who do not fall into low credit risks on high interest rates.  Therefore, check the interest rates that the banks quote on the low interest credit cards that they are offering you.  Sometimes these interest rates are so high that, in case you borrow on the card, you find it very difficult to repay.  After you make payments for one year on this card, you can opt for another card with still lower APR and build a good credit score.

Those who do not want to switch their credit cards to avail of low interest rate but at the same time want to enjoy the low interest rates that were applicable earlier can bargain with their current service provider.  If the lender has increased his interest rates from some basis points, in line with the industry, he is likely to entertain your plea if you are a valuable customer.

You can insist on getting a fixed lower rate from the lender, as the scenario shows an upward movement in the medium to long term.  If the lender refuses to give you a permanent fixed rate for the low interest rate credit cards, see if he is giving such a rate for a certain period, say six months to one year.  The added savings of the temporary lower rate on low interest credit cards can prove beneficial, particularly if you are planning a big purchase within that period.

Choose low interest credit cards that have no annual or enrollment fees.  Since these cards are designed for low risk individuals, they must not have any such fees attached to them.  Although the Federal Reserve Bank has raised interest rates ten times since June 2004, lending institutions continue to offer lower rate credit cards and loans to customers.  As a well-informed consumer, you must do your groundwork and get yourself the best deal for low interest credit cards.