Low Interest Credit Cards - are the Right for You?

by : Richard Greenwood

Low interest credit cards can look very tempting as compared to the average credit card interest rates of 16%, or even 18% (APR). With a lower interest rate these cards will cost you less if you are not able to pay your credit card debts on a monthly basis. For long-term credit card debts, you will be looking for lower interest rates and these types of credit cards may offer you the best credit card rate, for your needs. You will be saving a substantial amount on your credit card debt as opposed to a standard high interest rate found on most cards.

However, there is a downside to low interest credit cards. This is the fact that you will not be offered any reward schemes. Reward schemes are perks associated with credit card use. For example you can earn 1%-5% credit on every purchase you make with a higher interest rate credit card. If you use your card frequently this can add up to substantial savings and reduce your overall payment to your credit card company.

However, if you do not use your credit card for many purchases this may not be worth it. Another consideration is if you regularly make rather small purchases. This will mean that rewards may again not be feasible for you. In this case a lower interest credit card might offer the best credit card rate for your needs.

If you make larger purchases then rewards may be the best thing for you, as the 1%-5% credits on each purchase will save you a considerable amount of money. Thus reducing your cost per purchase and decreasing the amount you owe to the credit card company. The savings may very likely offset higher interest rates and make a lower interest rate credit card not very practical.

If you are in the habit of paying off your credit card debts monthly you may want to consider the pros and cons of low interest credit cards. What you gain with low interest, you will lose with reward benefits. If you pay your credit card debts on time you will not be paying much interest, if any, and the lower interest rates will not really benefit you. However, the reward programs will benefit you on every purchase.

You can make fast comparisons of low interest credit cards on line and by this means get the best credit card interest rates. There are many websites available which show the different credit cards and what they are offering you. They have reviews and comparisons available to help you make an educated decision.

Now that you are aware of the advantages and disadvantages of low interest credit cards you can make an educated decision as to whether this type of card will work for you. Assess your needs and take a look at your purchase patterns. In this way you will be able to make the right decision on which credit card will be best for you and your needs.