Low Interest Credit Card Savings Tips
Posted at by ifydcat on category CreditFinding the right credit card for you will depend on how you intend to use it and one of the main factors you have to consider is the interest rate or APR. This will determine how much is charged on any outstanding balance each month so the right choice could save you a lot of money in the long run.
If you pay off your credit card balance each month then a low interest credit card may not be necessary. On the other hand, if your credit card is regularly in the red then the low interest option is definitely the right one for you.
When searching for the best low rate credit card there are a few things you should consider. If you already have a credit card and you are looking to transfer your balance to a cheaper product, you should look out for good introductory deals. Some credit cards charge no or very low interest for the first few months so this could save you money and give you a chance to clear some or all of your debt without paying interest. However, do be aware of balance transfer fees, as these may cost more than anything you save on interest.
While the low rate offers can save you in the short term the best cards are those with low ongoing APR rates on new purchases. This is especially true if you think you will still have an outstanding balance after the introductory period ends.
The best place to find a low interest credit card is online. You can compare rates and fees quickly and easily to find the best deal. Be sure to check out fees and charges too. Many lenders try to recoup the money you save on interest by charging high registration and annual fees. At the very minimum you need to pay at least the minimum due each month and keep within your credit limit. The penalties can be prohibitive.
When applying for a low interest credit card, you will stand a much better chance of acceptance if you have a decent income and a clean credit rating. Also, do not attempt to overshoot the mark, apply for a credit limit that is appropriate for your income level.
Credit can be difficult to come by in the current financial climate so a low interest credit card could be ideal if you are looking to make a larger purchase but are finding it difficult to get a standard secured or unsecured loan. The interest rates will be higher than a standard loan, but it could be a handy option if you are in a fix.
So if you need credit or have an ongoing credit card debt, low interest credit cards are definitely worth investigating. The difference could add up to thousands of dollars.
Article by Richard of creditcardapr.com.sg which compares products including Visa debit cards and more.
