Wednesday, November 30, 2011
Pertinent Information About Low Interest Credit Cards
The following article includes pertinent information about low interest credit cards. If you don't have accurate details regarding low Interest credit card, then you might make a bad choice on the subject. Don't let that happen: keep reading. If you're not using a low interest credit card, ask yourself why? This credit card have numerous advantages such as the 0% Intro APR (annual percentage rate) that enables the consumer to save on interest expense. Customers who will be using their credit card to make purchases and take cash advance may be better off with a credit card that offers a low fixed interest rate instead of the 0% intro rate. Knowing what the interest rate will be after the promotional period ends is very important to avoid interest rate surprise. The interest rate customers receive after the 0% promotional period usually depends on their FICO or credit score. Customers who have decided to go with the 0% introductory credit card can use the savings derived from paying no interest to pay down the principal and ultimately pay the loan off much sooner. The main purpose of low interest credit cards is to transfer balance from high interest rate credit cards to interest free cards to save money on interest expense. They are also been used to make large purchases and important to customers who are planning to consolidate credit card loans and carry a balance each month. Banks charge a fee for balance transfers. Since this fee varies from bank to bank, customers should compare offers to find out which banks charge the lowest fees. Customers with excellent credit can request to have the transfer fee waived. Many banks and credit card companies advertise low interest credit cards that have many features similar to a standard credit card to entice new customers to apply. Similar features may be cash back, rewards, bonus miles, no annual fee and more. Therefore, comparing credit card features is very important because it allows you to find the card that meets your lifestyle and one that will save the most money on interest expense. Paying your entire outstanding credit card balance on time each billing cycle is the only way to avoid paying interest expense. This may not be financially feasible for many customers due to the fact that they do not have the available funds. Therefore, by using a low interest credit card to make purchases and maintaining a credit card balance will be the next best choice to save money on interest expense. The amount of interest accrue on your account depends on the interest rate you receive. Individuals with poor credit pay very high finance charges and miscellaneous fees. This situation keeps them indebted to the credit card companies if no action is taken to improve credit score. However, individuals with excellent credit can apply and get approval for a low interest credit card and avoid the burdensome situation of high interest rates and fees. Credit card companies have the option to change the interest rate on your credit card for various reasons such as making late payment, applying for too much credit, making late payments on different accounts or they can change it without any reason at all. Therefore, understanding credit and how to use it wisely is very important. Many individuals use a low interest credit card to consolidate credit card debts to save money on interest expense. Consolidation is the process of combining several loans into one loan with a better interest rate to lower your monthly payment. Because consolidation will extend the term of your loan it may increase the total amount of interest payment paid over the life of the loan. Debt consolidation is an excellent opportunity to keep you out of bankruptcy and get your finances back on track. Credit card consolidation will simplify your life by making monthly payments to one creditor instead of multiple creditors. Learning about grace period as it relates to your specific credit card is very important. The grace period is between 20 to 25 days. You have this free period to pay no interest if your payment is credited to your account during that time frame and your account carries no balance. Customer’s monthly payment must be received by the creditor during this time frame. Learning about grace period as it relates to your specific credit card is very important. Without a grace period in your credit card agreement you will immediately pay finance charges on new purchases regardless of whether you paid your previous month's bill in full. The internet is the best source to get information about various credit cards. Customers can compare credit card offers and submit an online credit card application for online approval. Customers with excellent credit can get instant online credit card approval within a few minutes of filling out their online credit card application. Once approved, the customer will receive the credit card in the mail within a few days. This is the fastest and most convenient way to obtain a credit card. Customers should make sure the credit card features fits their lifestyle before submitting an application. Using your low interest credit card to make purchases and take cash advance may result in paying a very high rate of interest. This is because some low interest credit cards will offer the 0% intro rate for only balance transfers. Therefore, it is very important to read the fine print to know what transactions will be approved for no interest, low interest or high interest. Not knowing pertinent information about your credit card will defeat the purpose of trying to pay less money for interest expense and getting out of debt.