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How Low Interest Credit Cards Work
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 clients 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.
Myths on Payday Loans
What are you going to do if someone knocks on your door and hands you a couple of unexpected bills to pay? What if you have already used all of your money to pay for your monthly expenses? In reality, this incident happens a lot. People may have planned their budget well, but there are some unexpected expenses that usually catch them off guard. When this happens, people result to making payday loans.
In the UK, the most popular type of loan is referred to as payday loans. It is an easy and short-term loan used to fund unexpected expenses. People usually have a bad perception with payday loans. But there is absolutely nothing wrong with making payday loans. No matter how hard you try to secure yourself financially, things like this may still happen from time to time. Here are some of the common myths with regard to payday loans.
First myth – payday loans are availed only by poor people with bad credit. This is not entirely true. Although most people who avail payday loans belong to the lower echelons of society, payday loans are also offered to average and rich people. In fact, there are a number of average to rich citizens who are applying for payday loans from time to time. This is used to cover up for their miscalculations during budget planning and to pay for fees that were not anticipated. It is also a myth that payday loans are availed by people with poor credit. Often times, people would have reached their credit limits at the end of the month. But it is also at the end of the month where unexpected expenses arise. Thus, these people result to availing payday loans.
Second myth – payday loans have outrageously high interest rates. The myth regarding inflated interest rates is very much false! Actually, UK payday loans have slightly higher interest rates than regular types of loan. It should be noted, however, that payday loans are intended to be short-term loans. Payday loans are to be paid as soon as possible. Thus, the accumulated interest is not really very high. On the other hand, regular loans are intended to be long term. By the time when people are ready to pay their loan, the accumulated interest is already very high.
Third and last myth – payday loans are peoples last resort. This third myth tells us that only people who have run out of options choose to avail payday loans. This is a very big misconception. Although it is those types of people who usually avail payday loans, this type of loan does not only cater to them. It would actually save you a lot of time, effort, and resources if you would avail payday loans the moment you need them and not wait until you have exhausted all of your resources and options before doing so. Not everyone who applies for payday loans is desperate or free of any other option. In actuality, many people simply want to have more available money so that they can be ready for emergencies.