We all know credit card lets us buy things now so that we can pay for them over time. We also know using credit cards are a way of borrowing and we have to pay the money back anyway. Therefore, when you are choosing a credit card, you must carefully consider many features such as fees, interest rates, and other benefits mentioned by the issuer of the card. You need to take a lot of precautions just the way you would before borrowing a loan from the money market. Some credit cards appear a wonderful deal at first glance but lose their sheen once you minutely read the terms and conditions.
Many people who use traditional cards carry balances on the card from month to month. This translates into paying exorbitant interest rates, pushing people deeper into debt. For such people, it is worthwhile considering other options that can bail them out of their financial predicament. One such option is low interest credit cards.
Low Interest Credit Cards
Low interest credit cards can help you save on credit card interest payments by availing lower interest options. Here is how you benefit.
* You pay less on credit card purchases. Even if you fail to pay during the interest-free period, the interest you will be charged subsequently will be at a considerably lower rate. Moreover, if you carry balance forward, you need not worry about paying back with an astronomical rate of interest, which usually is the case in a regular card.
* You have an option to apply for a zero-percent interest card for six months balance transfer offer. This allows you to transfer your balance from your exiting card to the new low-interest card and pay zero percent interest for a stipulated period of say six months. Thereafter, the unique feature of the card allows you to repay the balance amount in easy equated monthly installments.
How Much Money Can You Save On A Low-Interest Rate Card?
This will entirely depend on outstanding card balance and your spending habits. You can use handy credit card calculators to compute how much you can save.
There are a lot of low-interest card issuers in the market. So, when you are choosing one, compare the following features.
* Annual Fee: Choose a card with the most competitive annual fee. Yet, this alone should not be the deciding factor. While comparing, consider this feature as one of the factors in your overall assessment.
* Interest Rate: Decide based on the lowest annual percentage rate (APR). APR includes both the annual fees and the interest charges.
* Introductory Offers: Some issuers put forward alluring introductory offers like zero percent interest rate for a limited period or balance transfer with stipulated tenure options. The applicable rates for balance tenure options are usually attractively low.
* Rewards: Many card issuers offer rewards based on points system. When you accumulate certain number of points after each purchase, you will be eligible for a choice of rewards.
Do not forget to read the fine print for any hidden charges. Hidden charges may include expense for using an ATM or while using the card abroad.
Many Australians have derived immense benefits by using low-interest credit cards. It provides a great sense of security when the going gets tough.
About the Author
http://lowinterestcreditcards.com.au/balance-transfer helps Australians find the most cost-efficient credit card from a variety of products available in the market especially with the use of Balance Transfer feature. The website has features to compare the top credit card deals and select the credit cards that suit individuals' needs.