Low Interest Credit Cards
Low interest credit cards are offered
in various forms by Visa, Master Card, American Express,
and Discover. They give people a chance to pay more
money towards principal each month, instead of writing
checks that simply cover the interest on an account.
People are drawn to low interest cards because they
know all too well how quickly high interest rates can
lead to high credit card debt.
Defining the "Low Interest" Card
Each company seems to have its own definition
of low interest. There are cards that offer members
an APR of anywhere between eight percent and nine percent.
Other companies’ low interest cards have an APR of well
over 15 percent. However, these varied rates are not
the only things to look at when choosing a card. A card
with a higher APR might actually make more sense for
a person if it comes with certain rewards and benefits.
Why Switch to Low Interest Cards?
- Some people make it a habit--a bad habit--to simply pay off the minimum balance on their cards each month. This leads to paying the maximum in interest, which makes getting out of debt seem impossible. A low interest card that consolidates current debts helps people make headway against the balances they carry.
- Many people choose to eschew high interest rate cards with widely-publicized perks because they neither need nor use these benefits, and prefer to save money in the long run the guaranteed way--by paying less in interest with each payment.
Low Interest Credit Cards with Zero Percent APR Periods
Certain cards will actually offer members a length
of time when no interest is applied to purchases. A
card with a lengthy introductory period and a subsequent
low interest rate can be perfect for a person who is
trying to establish a credit history. In fact, many
of these cards are geared specifically towards students.
In may cases, members can even choose cards with their
school colors, mascots, or logos on them. Credit limits
vary greatly among low interest cards. Those intended
for people with no real credit background will usually
have spending limits of a few hundred dollars. However,
there are platinum cards from almost every company that
feature relatively low APRs and extremely high, even
non-existent, credit limits.
Q&A:
Is there such a thing as low interest Gas
Credit Card? Yes and No. It all depends on which
credit card company you select. There are many to choose
from and the retail cards are normally higher rates
than the bank cards.
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