Credit card usage is on the rise and it’s hard to know which credit card is right for you. If you follow a few simple guidelines, you can be sure to get the most out of your credit card. Beware of high-interest rate cards as they can cost you more than you are willing to pay in the long run. Low-interest credit cards are very prevalent and if you do some simple research, they can be a great financial tool.
When looking for a low-interest credit card, be sure to read all the terms and conditions. Many low rates are just introductory and can rise significantly after the specified time period. Some can go up to 30 APR or more, so be sure to read the terms and conditions carefully. Most credit cards are variable after the introductory period and are based on your individual credit. Variable cards add a certain percentage point to the current prime rate, which is subject to change.
Most companies provide a 0% APR, Annual Percentage Rate credit card as an introductory offer. Many last six months, but some can last up to a year or longer. Again, beware of how high the subsequent interest rate goes up. These cards are great to transfer existing balances so that you can save money and pay them off quicker. Just be careful not to fall into the trap of charging more than you can afford to pay off, simply because of the low-interest rate.
A low-interest rate credit card is beneficial to all people, regardless of your financial situation. Even if you are able to pay off the balance each month, you never know when an emergency will arise. Having credit readily available can be a lifesaver in a crucial time. Having a regularly used credit card is also good for your credit. It proves that you can use credit wisely and makes you a better risk. If you are not able to pay your card off entirely each month, having a low-interest rate credit card versus a high rate card will save you hard-earned cash.
Before choosing a card, browse credit card companies’ websites. Many times, reward programs will be offered at no charge with which you can get cash back and discounts. Also, be aware of whether a company charges an annual fee. There are so many cards out there that, unless your credit is shaky, you can easily find a card with no annual fee. Most websites will allow you to apply online and some will give you a decision instantly. If you are not comfortable applying online, you can also call and apply over the phone.
Low-interest rate credit cards are a valuable tool in anyone’s financial arsenal. If you are careful to consider all your options and read all the fine print, you can get a great card that is tailored specifically to your needs. Low-interest rate credit cards are truly the best credit cards to hold.