Tag Archives: interest credit

How Low Interest Credit Cards Work

December 20, 2019   Home Mortgage

Low Interest credit cards are exactly what their name suggests. They charge low rates of interest (APR). The APR is calculated in the same way as with other credit cards; this facilitates an easy comparison for an individual who is planning to switch over to these cards. Low interest credit cards are favored by individuals who habitually carry their monthly credit card balance forward. Low interest rates can lead to significant savings on financial charges.

For the introductory period, most low interest credit cards offer 0% APR; however, most credit cards offer 0% APR only for select situations such as balance transfers and major purchases. The introductory period offer can be used for consolidating multiple credit cards that charge high rates into a single low APR credit card. This helps people to reduce the financial charges associated with credit card debts and pay off the existing balances quickly. Often, low interest rate credit card companies will waive the balance transfer fee upon a client’s request. Thus, low interest rate cards with rates that can be up to 9 percentage points lower than those of other cards are a great way of saving for those inveterate shoppers who invariably end up with a monthly balance on their credit cards. It is also less taxing to take a cash advance with low interest credit cards. Individuals with poor credit scores may find themselves ineligible for low interest credit cards.

Low interest credit cards may or may not offer other advantages like cash back and travel insurance and should therefore be used with another card that does. This helps a card user to earn benefits from the other card which he may use when he does not intend to keep a balance; for other purchases, the low interest credit card can be used. It is advisable that the oldest extant credit card account that an individual has should not be closed for acquiring a low rate credit card; this is because maintaining credit accounts for long periods reflects well on the credit ratings.

There are several low interest credit cards available in the market. Individuals should do a thorough research to find a card that offers a perfect fit for their needs.

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Taking Charge of Your Zero Interest Credit Card

March 12, 2019   Fast Loan

The biggest names in the credit card industry like American Express, Discover, Citibank, and First USA among others are taking the market by storm with their zero interest credit cards. For people who enjoy an excellent credit rating, zero interest credit cards are a good choice. Not having to pay the additional interest rate on your outstanding balances is undoubtedly a great deal. However, this doesn’t mean that you, the card holder, can sit back and relax on your debts. In fact, with a zero interest credit card in your hands, all the more you need to be in control.

Caution: Zero Interest Credit Cards Can Mislead You

Anyone who plans on getting a zero interest credit card should be aware that a single delay with your payment can cost you to lose the interest-free period and get stuck with a much higher rate. So before you get all too excited in applying for the first zero interest credit card you see, ask yourself, are you really ready to take on the challenge? Can you really commit to paying your credit card balances on time all throughout the zero interest period? Can you finish paying off all your balances within that zero-interest period? If not, switching to a zero interest credit card will not be a good idea.

If you answered yes and you’re really determined to get off from your credit card debts by paying your monthly balances on time, then great, grab the opportunity that a zero interest credit card offers. But take your time in choosing. Don’t judge a credit card deal based on the zero interest alone. Be a wise credit card shopper and examine all other costs associated with every credit card you’re considering. Read the fine print no matter how lengthy or how small the letters are. The real costs of your credit card are all disclosed in your credit card agreement.

Also, don’t forget to check on your credit report before actually sending out your application. Credit card companies do give out offers to just about anyone, regardless of whether they’re eligible for the offer or not. But getting denied after submitting your application will only damage your credit score all the more. So, don’t expect an approval unless you’ve personally checked on your credit report. If you’re sure that you have good credit, that’s the only time you should submit your application.

Taking Charge Of Your Credit Card

After going through the choosing and finally getting approved, what’s next? Be prepared to take on your responsibility. Pay off as much as you can each month so you can get off from your credit card balance at the soonest possible time. You have to beat the zero interest period before it expires.

It is a good idea to have your credit card repayment plan set up even before you get a zero interest credit card. If the zero interest period runs for 12 months, make it a goal to finish paying off your balances at even less time. For instance, complete your payments within the next 10 months or even less than that if you can.

Lastly, taking charge of your credit card means being in control with your own spending. If you keep charging new purchases on your other credit cards while trying to repay your old balances, you’ll certainly have a more difficult time keeping up with your payments. So take charge. Know your limits. If you must use your credit card to avoid closing your account, use it only for small charges that you can easily pay off on your next due. Bear in mind that a zero interest credit card will only work if you know how to use it to your advantage.

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