What to Look for in Low Interest Credit Cards

Posted on September 21, 2011 by

If you are shopping for a credit card, you know that one with a low interest rate can make it far easier on your finances when you carry balances. Although experts will tell you that maintaining a zero balance on your card is the ideal way to use credit cards, this is not always possible. That is why it is best for you to opt only for the best low interest credit cards available in the market. Here are a few ideas you can use when shopping for one.

Zero Interest Cards

The best deal you can find in the market is, of course, the zero interest credit card. Before you sign up for the card make sure to read through the terms and conditions in detail. Typically, zero or low interest credit cards have a specific initial period over which the special interest rate applies. Keeping yourself informed of this time limit helps ensure that you do not overshoot your low interest period and run up huge bills. Also check with the issuer of the low interest credit cards if the special rate applies on both balance transfers and purchases.

No Annual Fee Credit Cards

In addition to an attractive interest rate, many low interest credit cards also come with zero annual fees. The annual fee is the charge you usually pay to the issuer in exchange for using his card. There are now a number of issuers who no longer charge this fee in a bid to make their credit card offerings more attractive to potential customers. Make sure you are specifying zero annual fee when you are searching for low interest credit cards online.

Attractive Benefits

Many issuers also come up with some great extra benefits when you sign up for their cards. These benefits could take the form of warranties for purchases that you make with the card. If you will be using your low interest credit cards extensively for shopping then these warranty cards are a good deal for you. Many low interest credit cards also come with auto rental insurance or travel accident insurance and roadside assistance. If you are on the move quite a lot then finding a card that offers these benefits is in your best interests.
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Different Types of Low Interest Rate Credit Cards

Posted on September 21, 2011 by

A low interest credit card can help you manage your monthly expenses with greater convenience while ensuring that you do not end up with huge payables by month end. There are many different kinds of low interest rate credit cards available in the market today. In fact, every issuer has a low interest card to cater to those who want to keep their credit card bills within control. Many of these low interest rate credit cards are designed for specific expenses and getting the right one to suit your typical spending pattern can benefit you quite significantly.

Gas Rewards/ Rebate Credit Cards

If gas is your single biggest expense every month then getting a gas rewards/ rebate credit card is a good option for you. These cards can earn you some cash back in the form of discounts on gas prices which is bound to lighten the load on your wallet every time you have to fuel up. Over and above this discount, many gas rebate low interest rate credit cards come with additional rewards programs offering free gifts or vacation trips. Otherwise, you might be able to accumulate points each time that you use the card at a gas station. When you accumulate enough points you can redeem it for gifts or merchandise or even cash.

Airline Rewards Credit Cards

Airline rewards low interest rate credit cards are ideal for those who are frequent fliers. Most often these cards come with a points based system. When you purchase your air tickets with this card your account is credited with points. These points can be redeemed for free air tickets once you have a certain minimum amount. Make sure you choose the right kind to match your regular travel lifestyle. Some cards allow you to use the points earned on any airline while others give you bonuses for using specific airlines. If you have a specific airline that you prefer to travel with, you could even get an airline co-sponsored credit card that you can use for purchasing their tickets.
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Credit Cards With Low Interest Rates

Posted on September 21, 2011 by

If you normally avoid using credit cards or use them very sparingly, then you may not know that there are credit cards with low interest rates that can prove to be really useful. These cards come with low enough interest rates to make payments on balances quite affordable. Many people opt for these cards when they need a convenient and quick alternative to paying with cash. Learn more about credit cards with low interest rates before you sign up for your very own one.

Two Types of Interest Rates

Credit cards typically come with either of two types of interest rates- fixed or variable. The fixed rate does not fluctuate while the variable rate does.

Fixed Rate Credit Cards

The annual percentage rate or APR that is charged on these credit cards with low interest rates remains the same at all times. This rate is not based on the U.S. Prime Rate or the LIBOR rate and does not move in line with them. However, the rate may increase if you delay payments or exceed your credit limits.

The 9.9% basic credit cards are some of the most popular fixed rate credit cards with low interest rates that you will still find in the market today. However, not many issuers offer variants of these cards since variable rate options are preferred by customers.

Variable Rate Credit Cards

A variable rate card comes with an APR that is linked to the U.S. Prime Rate or LIBOR rate. When these change, the rate on the credit card changes too. The issuer usually adds a margin to the rate index to determine the APR on your variable rate credit cards with low interest rates. When the U.S. Prime Rate/ LIBOR rate moves, the card’s margin is added to it to arrive at the new APR payable. Since these base rates move often, your credit card APR will also keep fluctuating. Issuers generally review the rate on a monthly basis and tweak the credit card APR accordingly.
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