To attract more cardholders, many credit card companies introduce their own version of low interest rate credit card. Of course, who doesn’t want to enjoy a low interest rate? Nevertheless, a low APR doesn’t always mean you’re getting a good deal. Let’s consider some important points about credit cards with low APR offer.
Some of the Best Low Interest Credit Card Offers
If you do your search, there are credit cards with low introductory rate offers that last for 6 months to 12 months. Aside from a low introductory APR and a lengthy introductory period, the best cards usually comes with no annual fees, low penalty fees, and higher credit limit. There are rewards credit cards that offers a low introductory APR from time to time and these the ones to take advantage of.
Using Your Low Interest Credit Card Wisely
What should you look for in a low APR credit card? Don’t forget to check the length of the grace period that the card offers. It’s good to get a card with at least 25 to 30 days grace period since this gives you ample time to pay off your balances without getting charged with the interest rate.
It’s important to remember that some low APR cards may not give a sufficient grace period. Add to this, even with a low interest rate, you should have the option to pay off your original balance without additional interest if you can pay it back on time.
Many card holders prefer to carry over a balance from one billing cycle to the next. However, such a habit means paying the extra APR cost every time. Take advantage of the grace period that you are provided by submitting your full payment on or before your due date. By not paying the extra interest cost, you can save as much as 8% to 19% from the total amount of your purchases.
Keep in mind that the 0% APR is just a temporary offer. Sooner or later, you’ll be charged with the regular interest rate. For this reason, it’s important to get to know how much the regular APR is once the introductory period ends. Make sure that the regular APR would remain at a reasonable range.
Last but not the least, use your credit card with discretion. Avoid using your credit limit to the full as doing so can badly affect your credit rating. Despite the privilege of a low interest rate, make sure that the expenses you charge to your card are well-worth it. To avoid penalties, see to it that you will be able to pay off those charges before your deadline.
Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008