Low Credit Card Rates
If you’re struggling to pay your credit balance off every month, then a card with a reduced interest rate is probably for you.
Typically a low rate credit card comes with a skinnier interest rate, and as a consequence, may not offer much in the way of bells and whistles such as rewards programs, extra warranty protection or frequent flyer points.
The cheapest credit cards are useful for those cardholders who carry a balance over in full each month, or are on a tight budget. Despite the cheap rates, some low credit card rates still offer balance transfers and interest free days of up to 55 days.
Some low-cost cards may offer attractive balance transfer terms, which are carrots used by lenders to encourage you to switch credit cards.
Balance transfers are innovative as they come with a honeymoon period of say 6 – 12 months. Over this period, the interest rate charged against the balance transfer amount can be as low as 0 percent. But be warned, when the honeymoon is over, the interest rate may revert to a higher charge.
Nevertheless, if you’re sensible, a balanced transfer with low credit card rates can slash hundreds of dollars in extra interest payments, and help you out of a financial pothole.
Opting for a credit card with an interest-free period can also be a smart decision, as it gives you more time to save some cash to cover a purchase. That said, the interest-free period only applies if you pay off your card in full on a monthly basis.
If you fit the profile for a low-cost credit card, be aware annual fees may still apply – although there are exceptions to this rule.
Moreover, with some of the low rate cards, the annual fee may be waived if you spend above a certain amount annually. However, to earn this bonus, you may be required to spend many thousands of dollars.
It is certainly worth shopping around for low credit card rates and if you’re looking for a place to start, visit RateCity and compare low rate credit cards online.