The Ins and Outs of Low Interest Credit Cards
Perfect for last-minute shopping, recurring monthly bills, reservations and online purchases, credit cards give consumers a graceful flexibility that is unrivaled by any other form of tender. Credit cards provide a certain reliability and convenience that makes it easy for cardholders to spend to their hearts' content and pay back the balance within a variable period of time.
Because consumers often do not have to pay back the borrowed funds for an indefinite time period, credit cards offering low interest rates become exceptionally indispensable when it comes to saving money. Read on for tips and information about low interest credit cards and how to select and apply for the card that is best for you.
Low Interest Credit Cards
Often boasting low 0% introductory interest rates and other amazingly low rates, low interest credit cards offer consumers a sensible approach to paying back their credit card debt. All major banks and issuers, like Visa® and MasterCard®, offer special low interest incentives with select credit cards. Interested consumers may choose between two different types of cards – low interest credit cards with a low introductory rate and those with a low fixed rate.
Some credit card users avoid interest charges by paying off their credit card balances in full and on time every month. When money becomes tight and consumers have no choice but to carry a balance, low interest rate credit cards are worth more than their weight in gold. A credit card with low interest obligations can help a cardholder save hundreds if not thousands of dollars a year.
Benefits of Low Interest Credit Cards
Perhaps one of the best types of credit cards available, low interest rate credit cards give consumers a brilliant light at the end of the tunnel of credit card debt. While these cards may only be offered to those of superior credit ratings, low interest cards can help cardholders whittle down debt without drowning in interest charges.
Other benefits of low interest rate credit cards include:
• Reasonable rates for those who carry a balance: Low interest cards provide a great, financially sound alternative for credit savvy consumers who cannot afford to pay off their credit card bills in full every month.
• Tremendous savings on interest: Thanks to their low (or possibly nonexistent) interest rates, low interest credit cards help cardholders save hundreds and even thousands of dollars.
• Great longevity: Consumers who wish to save money while they strive to pay off their credit card debt may find that the great rates don't always end with the introductory period. In many cases, the 0% interest incentive lasts for up to 15 moths and possibly longer. Furthermore, low, ongoing APRs may endure long after the introductory period has expired.
• Helpful and affordable balance transfer options: Low interest credit cards make it easy and financially feasible for cardholders to consolidate debt. Transferring other balances to a credit card with 0% interest can ultimately save consumers hundreds or even thousands of dollars when the rate lasts for a reasonable time.
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How to Qualify
As with many situations in life, great rewards come to responsible people. Low interest rate credit cards are generally reserved for consumers with good to excellent credit ratings and the most responsible and reliable financial behavior.
When you apply for the credit card, the company will pull your credit record to determine if you qualify for their best rate. If you do not qualify, they may still approve you with a smaller line of credit or for a different rate than advertised.
Selecting and Applying for Low Interest Credit Card Applications
From your mailbox to the television, radio and Internet, advertisements for low interest credit cards are everywhere. All major banks and issuers present consumers with a wide array of low interest cards to consider. While thousands of low interest credit cards exist, we've taken the guesswork out of comparing, contrasting and determining the best offer. We have listed only the top 10 low interest rate credit cards with detailed reviews and thorough, thoughtful analysis. View our side-by-side credit card comparisons to easily identify the credit card that will best suit your financial needs.
Although the interest rate may be your primary focus in selecting a low interest credit card, you should also consider all the terms of agreement to ensure the best fit for your needs. Find out if your desired card features any special rewards programs for cash back or prizes. Uncover any charges and fees associated with the card beyond the interest rate. Is there an annual fee?
Pay special attention to the following factors when selecting a low interest rate credit card:
• Introductory interest rate
• Duration of introductory period
• Ongoing APR percentage
• Rates and charges for balance transfers
• Additional charges or fees
• Bonus features
• Security features
Selecting the right credit card can be likened to shopping for shoes. The trendy and fashionable option does not provide the same permanence and durability as the comfortable, reliable and sensible alternative. Credit cards should be comfortable, reliable and sensible, and similarly, they should last for the long haul. Utilitarian low interest rate credit cards have been designed for long-term use. Remember, the “fit” is inherently linked to the benefits one will draw from a low interest credit card.
As you narrow down your choices, make it a point to consider all the terms, features, benefits and fees prior to making a final decision.
FrankfordFinancial.com offers a comprehensive overview of low interest rate credit cards, their features and terms, how they work and which ones are best for consumers. You will find the best deals and promotions right here on this page.
Introductory Offer vs. Low Fixed Rate
Banks and issuers provide two types of low interest credit cards: those that offer low introductory rates and those that maintain a low rate continuously. Cards that offer a low introductory rate of 0.0% typically last anywhere from one, three or six months up to a year or more, depending on one's credit history. Although these wonderfully low rates may not last forever, many introductory offers follow through with a low ongoing rate as long as the consumer practices responsible financial behavior.
Low fixed rate credit cards may not offer as enticing an initial rate, but they do ensure that responsible cardholders will enjoy good rates on an ongoing basis. For consumers who plan to carry a balance for a long or an indefinite period of time, low fixed rate cards make the most sense and they can save a boatload of money in the long run.
Remember, a consumer with better credit history will receive a more attractive rate than a consumer with worse credit history.
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Summary
Before you settle on a specific low interest rate credit card for yourself, shop around on FrankfordFinancial.com and consider the benefits of each offer. To suit your own personal or business needs, pay attention to the introductory and APR rates, applicable fees and finance charges, benefits and special programs.
Remember that you could save hundreds or even thousands of dollars, depending on the low rate you secure, the amount of debt you carry and how long it takes you to pay it off. Low interest rate credit cards are a smart fix to problems involving credit card debt.
FrankfordFinancial.com provides a wealth of credit card information to satisfy consumer questions about credit. We've investigated and analyzed countless credit card offers to bring you an easy-to-read list of the top 10 low interest credit cards available today. It is our goal to provide helpful, useful information and to help save you money.
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FAQs
What credit card companies offer the best interest rates?
We only offer the best : Chase, Citi and AMEX. Their lowest rates are offered on this page.
Will I encounter any fees?
To stay on top of your credit card debt, keep an eye out for unexpected fees and finance charges. Before you apply, discover if the credit card requires an annual fee. Prior to authorizing any hefty balance transfers, read all the fine print and inquire about any fees associated with transfers.
How long is my low interest rate good for?
The low introductory interest rate may be good for a period of one, three or six months, up to 12 months or more. The low ongoing rates may endure indefinitely, according to a consumer's spending and payment habits. Make sure you don't miss a payment or make a late payment on this card or any other account you have. The low interest rate is contingent on your flawless credit behavior.
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Kathryn M. D’Imperio, Analyst, Frankford Financial ©2008
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