Things to Know About Low Rate Credit Cards

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A lot of card issuers are offering low rate credit cards to lure those potential users looking for low repayments of purchases and cash advances over a long period of time.
Credit repayments are made by users with interest added if payments are made over certain period of time.
Interest rates are stipulated in figures of Per Annum (p.
a.
), that is, if the interest is given as 12% p.
a.
, the credit balance will grow by 12% per year because the accumulated interest is added to the value of its balance.
However, interest on credit company card balance are not accumulating yearly, instead the interest is computed daily and added to your balance regularly.
This would make your credit debt grow significantly unless you are using one of Low Rate Credit Cards.
Using this type of card could save you a lot of money in the long run.
Looking for the right card Looking and applying for low rates should be easy as they are common nowadays.
A thorough evaluation is needed though because not all offers are absolutely equal even if they offer the same rates.
Some credit card issuers may offer different rates for different credit company card transactions and highlights only the rates of one or more transactions with low rates.
Would be users must check the rates for all services that the credit company card offers such as purchases, cash advance and other transactions like balance transfer.
One credit company card may offer low rates on purchases made but may charge higher interest on cash advance or balance transfer or the other way around.
Other issuers may charge interest on interest, which means the resulting interest of the credit company card balance will also be charged with interest on the next statement period.
It would be wise therefore for the user to determine as much as possible the purpose for which his credit company card will be used so as to pay the least interest amount and enjoy the benefit of low interest rates.
Limited time Also, in some cases, low rates or at times zero rates are offered only for a certain period of say one year, after which you have to pay for the regular rates which is usually higher.
User must be aware of the period over which the low rate or zero rate of his credit company card can be applied and evaluate accordingly whether such limited period of low rate credit company card is advantageous for him.
An unlimited low interest rate credit company card is most desirable.
Other benefits Low rate credit cards may not carry with it some benefits that other higher rate credit cards may offer.
For example, some credit cards will offer rewards if repayments are made within 55 days and charge high interest rates beyond such time while low rate credit will charge low interest rate regardless of the time that repayments are made.
In such case, the user must determine whether taking advantage of low interest repayments is more beneficial to him than availing of the rewards.
Why should I choose low rate credit card? Low rated credit cards are ideal if you do not make complete repayment of your credit cards balance on each billing period because you will only be paying minimal amount of interest and save money by taking advantage of the low interest rate.
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