Using your low interest credit card is a convenient way to shop and spend money. You don't have to worry about going to the bank to get cash to pay for your goods before you go shopping and the added advantage of using a low interest credit card is that you don't have to worry about carrying too much cash in your wallet or purse.
Low rate credit cards are best if you are looking to purchase items and only make the minimum repayment on the card. If you leave an outstanding balance that will incur interest each month, you want to ensure you have the lowest rate possible. Consider the difference between a card with 11% and 20% interest rates, with a £3000 outstanding balance, you will incur over £20 more interest per month on the high rate card. This is a popular option for people who will make regular repayments on a purchase, but can avoid applying for a personal loan often with a higher interest rate.
Rewards are a great way to earn bonuses and get some money back from the banks. Usually rewards cards have higher interest rates, higher annual fees, or reward program fees. You should only opt for a rewards card if you plan to spend a lot of money on the card, but pay the balance to zero each month (before incurring interest). If you know you can pay off your balance each month, then a rewards card could be right for you.
Make sure that the credit card you use is the most suitable for your spending patterns. If you are using a card for extended credit and don't pay off the balance in full each month, then choose a card with a lower rate. It may not offer any interest free period, but the lower interest rate should save you more in the long run. If you use your card for the convenience of paying for everyday purchases such as petrol or groceries, try a credit or charge card with maximum interest-free days, then make sure you pay it off in full each month. This way you get the benefit of up to 62 interest-free days on purchases, as well as rewards, discounts and frequent flyer points. But watch the annual fees on rewards cards.
Low interest credit cards typically come with high balance transfer rates and fees or interest rates higher than the prime rate after the introductory period. Cash withdrawals may also have higher fees. In short, you have to read the terms and conditions pretty carefully. Check for all the fees and future interest rates before signing up. To make the best use of a low interest credit card, you should make large purchases using it and pay off the balance during the introductory period. Yes, you might end up paying a small interest rate but it would be better than taking a store credit for a high interest rate. If you have a 0% interest offer, then you will paying nothing for the entire introductory period. Using your low interest credit card smartly during the introductory period can definitely help you to save some money on your large purchases.
Sunday, April 25, 2010
Tuesday, April 13, 2010
Are You Qualify for Low Interest Rate Card?
In this global economic crisis having a credit card debt might be a big problem for us. If you are a credit card holder and try to pay off the interest all the time but nothing change in your total credit card debt then you may seek a debt reduction method that can help you free your debt.
You can find information from any different resources. But, you must do it wisely. Some of them might be not solving your problem at all. What we need to do just extra effort and be cautious about their offer to us. We need to find well known resources to help us solving our financial condition.
It is much easier for you who have a good credit history to reduce your debt. You can transfer your outstanding balance to low interest credit card each time your introductory period runs out. You do it by transferring your outstanding balance to a new card about a month in advance. By doing so, you do not pay interest so that you can lower your credit card debt one time in a moment. This is a good way for you who carry large balances in account.
Discipline is the key factor to reduce your credit card debt. Well, it takes sometime to lower your balance depending on how much your balance carry on the card. Next thing you do is moving from one card onto another card which offering low introductory interest rate.
Well, some people might be saying that it is not easy to switch from one card to the other in this recession but at least give it a try, right? You must remember one thing, do not try to reapply once you have rejected by the lenders. It will lower your credit card score. You need to wait for months before you can apply it again.
Is it low interest credit cards only for people who have a good credit score? It is not. If your credit scores less than perfect, balance transfers still can help you saving your money. Whether you have excellent credit, fair credit or less than perfect credit, you still can benefit from transferring balances onto credit card with low interest credit cards.
What you need to do before applying one are; read carefully the fine prints, compare the offers to other card company, look for the introductory interest rate, end of introductory period, normal interest rate, annual fee, late payment and other possible charges.
When you done with your research pick the right one that fit your current financial condition. So now, you know what to do if you have large outstanding balance on your card. Switching one card to another low introductory interest credit cards will save you much money.
But, at the same time you should not try using your credit card for purchasing any goods or other unnecessary needs in order to get this plan working for you.
Good luck!
You can find information from any different resources. But, you must do it wisely. Some of them might be not solving your problem at all. What we need to do just extra effort and be cautious about their offer to us. We need to find well known resources to help us solving our financial condition.
It is much easier for you who have a good credit history to reduce your debt. You can transfer your outstanding balance to low interest credit card each time your introductory period runs out. You do it by transferring your outstanding balance to a new card about a month in advance. By doing so, you do not pay interest so that you can lower your credit card debt one time in a moment. This is a good way for you who carry large balances in account.
Discipline is the key factor to reduce your credit card debt. Well, it takes sometime to lower your balance depending on how much your balance carry on the card. Next thing you do is moving from one card onto another card which offering low introductory interest rate.
Well, some people might be saying that it is not easy to switch from one card to the other in this recession but at least give it a try, right? You must remember one thing, do not try to reapply once you have rejected by the lenders. It will lower your credit card score. You need to wait for months before you can apply it again.
Is it low interest credit cards only for people who have a good credit score? It is not. If your credit scores less than perfect, balance transfers still can help you saving your money. Whether you have excellent credit, fair credit or less than perfect credit, you still can benefit from transferring balances onto credit card with low interest credit cards.
What you need to do before applying one are; read carefully the fine prints, compare the offers to other card company, look for the introductory interest rate, end of introductory period, normal interest rate, annual fee, late payment and other possible charges.
When you done with your research pick the right one that fit your current financial condition. So now, you know what to do if you have large outstanding balance on your card. Switching one card to another low introductory interest credit cards will save you much money.
But, at the same time you should not try using your credit card for purchasing any goods or other unnecessary needs in order to get this plan working for you.
Good luck!
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