The Finance Blogger

Low Interest Rate Credit Cards

Low Interest Rate Credit CardsMany banks have started offering low interest rate credit cards that offer a lot of advantages over the traditional credit card. These cards can be very attractive to consumers who traditionally carry a balance on their credit cards. They are paying interest on that balance. Most credit cards will typically carry a rate of 18% or higher on unpaid balances. Low-interest rate credit cards will be much lower with some around the 11 or 12% range. This can translate into significant savings for many people on a monthly basis. Especially when they are carrying a balance on their credit cards. You are still better off to arrange for a low-interest rate personal loan. However, in the absence of a loan, low-interest rate credit cards can save you money.

What are the Advantages of a Low Interest Rate Credit Card

The advantages vary from bank to bank. However several that we looked at include the following in their sales pitch on their web sites:

  • Low interest rate of 11.99% compared to 18% or higher with a regular credit card
  • Common carrier accident insurance
  • Discounts for car rentals and some locations
  • Checks to use with your credit card to transfer debt from other places
  • Emergency card replacement if lost outside of your country
  • Emergency cash advance if your card is lost
  • Acceptance worldwide
  • Accumulation of points that can be used to purchase travel, hotels and selected products

Some cards will charge a fee for using these cards on an annual basis. Several that we looked at charged $29 a year for their credit card. In effect, this makes up for the reduced that you might otherwise pay and is an additional cost to customers that pay their balances in full on a regular basis.

Is a Low Interest Rate Credit Card Right for You

These cards certainly can save consumers a lot of money if you routinely carry a balance on your credit card from month to month. Depending on the balance that you carry you can easily save several hundred dollars a year which pays for the annual fee and makes sense for those consumers. This is really a personal loan with a revolving line of credit with credit card advantages. They are very flexible and convenient to carry and use as a personal loan tool.

On the other hand, if you do not carry a balance from month to month, then the annual fee is an added expense that you will pay for. This then becomes the price you pay for the other advantages that come with the card. Examine the fine print carefully to make sure you understand the details and exactly what you receive when you use these cards.

For example, if you rent vehicles often, then the 20% savings can add up quickly to pay for the annual fee. The same thing applies to common carrier accident insurance. Take a close look at all of the advantages of each card and select the one that makes the most sense for your lifestyle and travel needs.

Other Credit Card Products

There are so many different credit card products available on the market that it is sometimes difficult to determine, which one makes the most sense for your situation. With each card that is offered, you really have to take the time to assess whether these products and their specific advantages vs. cost is going to actually save you money while providing the convenience of a credit card.

Many people are attracted to cards that build points. They can be used to purchase travel such as airfare, hotels, and car rentals. Some even have catalogs that offer a variety of goods that can be purchased with these cards. This is a great way to recover some of the cost of an annual fee if one is charged.

Take the time to look at each one and them, make your decision. Low interest rate credit cards are great products. But they might not be the best product for you based on your lifestyle. For more information about credit cards and how to deal with credit situations, click here.


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One Response to “Low Interest Rate Credit Cards”

  1. I always pay offs card every month, for me there is no such thing as a low interest credit card

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