ALL ABOUT LOW INTEREST CREDIT CARDS
Consumers normally get their first card without doing much research about interest rates and how it affects their payments and so on. They normally just get the most popular card or the one they got a mail from! There are many options that help the subscriber to decrease payments and achieve financial stability.
Interest rates for some cards go over 23%. One of the basic elements a prospective borrower should look at is the interest rate on transferred debt. The interest rate is usually lower than usual interest rate for the credit card. This is especially good for those of you that already have debts. Interest on new purchases is a major cause of concern. This rate has to also be reasonable because more often than not, the new card becomes a victim of heavy usage! Also, borrowers worry about annual fees but these are mostly temporary. Getting low interest credit cards will save a subscriber by great sums, usually greater than annual fee. When good credit is established with the provider, the annual fee may be waived later on.
Another rate of interest that you will have to care about is the interest on cash advances. This is usually more than the normal rate of interest. Cash advance is usually limited to about couple hundred dollars but credit card companies insist that while paying the balance, the credit portion must be paid off first and the portion that relates to the cash advance. Cash advances can come extremely handy especially in emergency and where credit card cannot be used. The interest rates have to be borne in mind, though.
Visa and MasterCard are right now universally accepted cards. Cards like American Express and Discover hence offer lower rates of interest and special rates for new customers. These rates are definitely worth the attention because even though you may not be able to use it as widely as your previous ones, by transferring your balance and using this new card, your payments are going down by a significant amount which is what you want! Especially AmEX or Discover Cards are not widely accepted but they have good rates of interest to offer.
Even store specific cards like Gas cards, Department store cards etc. have amazing offers and interest rates to offer. They bank on the fact that customers will change their spending pattern to the new gas station or store and this increased revenue makes up for the low interest rates that they offer. A slight change in your habits such as using a new credit card at a new card station improves your credit scores and lowers payments as well! This lessons the burden on your main credit card. However, keep account on how much you spend on each of them.
Getting a new card may seem like a task that you just don’t want to focus on your energy on. However, if you really want your payments to go down, look out for four main factors on your new card: the regular interest rate, the rate on transferred balance, the rate on cash advances, and the annual fee. This can bring down your payments to a significant extent. Pay lesser, feel happier!
