Low Interest Rate Credit Cards
Low interest credit cards are particularly well suited for people who carry a balance from month to month. Typically these companies look for people with good to strong credit and a solid payment history. With a low interest credit card you can save significant money each month on your payment – which can equate to a lower minimum payment and a faster rate of paying off the initial principal if so desired.
Low interest credit cards typically charge a rate similar to what banks are charged to borrow funds. This can provide you with significant savings over other credit cards. However, if your payment is late or you go over your minimum you can anticipate a potential for the rate to be increased. Careful management of charges and monthly payments are necessary to take continued advantage of lower interest rate credit cards.
- Interest rate. How low of an interest rate comes with the credit card? Is the rate fixed or adjustable? Penalties. What are the charges and penalties if you make a late payment or go over your low interest credit card limit? Will the rate automatically go up? If so, how soon will the rate come back down? Annual fees. Some low interest credit cards charge annual fees. Make sure you know any costs for your low interest credit card upfront.
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