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Top 5 Reasons to Choose a Low Interest Rate Credit Card The first reason to pick a low interest credit card is that it gives you a way to finance high dollar purchases at a reasonable rate. Don’t be fooled by in store financing options that advertise “no interest for 3 months” on that new sofa or refrigerator. If you haven’t paid it off completely by the end of the grace period, all the finance charges you would have paid during that time are added back onto the amount you owe. With a good credit card you can pay off an expensive item at your own pace and at a much lower interest rate. The second incentive to shoot for a card with a low rate is that it gives you negotiating room. If you already have a great rate, you can call your new credit card company in 12 months and tell them you want more perks. This could be a higher cash back rebate or a better rewards program. If you aren’t initially approved for the lowest interest rate available, building a good history with an issuer who does offer lower rates is still a good choice. Once your credit score improves, you can ask for the same interest rate their premier customers enjoy. The third great reason to fill out that low interest credit card application today is to take advantage of balance transfer offers. These can vary from 0%-2.99% and some last up to a year. Using balance transfers can save you a significant amount of interest as you work to become completely debt free. Always investigate the flat fee charged for each transfer to see how much money you are really saving. You should use these low introductory offers wisely by paying off as much debt as possible before your regular interest rate kicks in. Fourthly, choosing such a card gives you access to other great options like extremely low introductory interest rates. Your card company may also continue to offer special rates on an ongoing basis in the form of checks that can be written directly from your credit account. These can be used to pay for vacations, emergency expenses, or balance transfers. Your credit issuer is very interested in keeping their low risk customers. This means you will continue to have access to great rates as long as you make your payments on time. The final reason you should choose a low APR is because you deserve it. The best low interest rate credit card offers are only available to people with excellent scores. Reward yourself for your responsible history by seeking out low interest rates on cards with no annual fee. Whether you intend to leave a balance on your card right now or not, you may need to have that option available in the future. If you are only able to pay the minimum for a couple of cycles, you shouldn’t have to suffer the unnecessary expense of high interest payments. |
| Tuesday September 7th 2010 | ||
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Bettertrades founder Freddie Rick provides stock market education and options trading strategies.
A quick payday loan could help you take care of emergency financial needs. *See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Here" button, you can review the credit card terms and conditions on issuers website. |