Benefits of Low Interest Credit Cards

by : David Hall

You've worked hard for your money and you want to enjoy spending it. So why waste your spending power on high- interest payments when there are so many low- interest credit cards available to help you get the most out of your money? Low- rate credit cards offer a variety of options including instant approval, fixed rate interest, balance transfer, and some of the best credit card rates around - in many cases 0 % intro APR! Low- or no- annual fee choices make low- interest credit cards affordable to almost anyone, including students, families and seniors on a fixed budget. can help you find the best credit card deals to maximize your spending. Our detailed information about the different kinds of credit cards available on the market, easy credit card application system, and credit card approval resources will have low- interest plastic in your pocket hassle free!

Let's look at what low- interest credit cards can do for you:

1. Savings: Low interest credit cards can save you money in several different ways. The most obvious saving is in the low- interest APR (annual percentage rate). Unless you pay your balance in full every month, you pay interest on the outstanding balance. The lower the interest rate, the less you pay. You can compound your savings by using the balance transfer options offered by most credit car companies when you open a new account. To take advantage of the savings, you simply move your higher- interest credit balances to your new low- rate credit account. With some companies offering amazing deals such as 0 % intro APR for six months or more, you could save up to 30 % or more on your interest payments. Low rate interest is also a important consideration if you intend to use your credit card for cash advances. Unlike regular credit purchases, which can have a grace period of several weeks, interest on a cash advance usually begins to accumulate right away. You want this rate to be as low as possible.

2. Stability: Many low- interest credit cards offer fixed rate interest for a set period of time, according to your contract. If the rate does change, your credit card company will notify you of the change and you will be given a chance to either accept and continue your credit contract, or to decline and terminate your account. Low fixed rate cards are ideal for anyone on a budget who needs to be able to accurately forecast his or her monthly spending. The consistent interest rate allows you to spend confidently, without having to worry about interest rate fluctuations each month.

3. Build your credit rating: Going through the credit card application and approval process is a great way to start building your personal credit rating. A low- interest card is perfect for this task because you can use it to establish a pattern of buying on credit and making your payments on time. If you can pay off the balance in full each month, that's great. But if you're like many people and you have to carry a balance, you won't have to pay a lot extra with a low interest rate credit card. By building your credit rating in this simple, low- risk manner, you can make it easier to secure future credit or loans for big- ticket items such as a vehicle or home mortgage.

4. Status and perks: Plenty of credit card companies, especially those with a world- wide presence, offer access perks for their clients. Customers can expect extras such as special 'members only' offers and opportunities to purchase preferred seating or advance tickets to major events. Credit card companies also often partner with outside businesses to offer excellent deals on services like life insurance or travel protection.

5. Reward programs: Credit card deals often include loyalty or reward programs. Typically, these involve collecting points based on your spending level; the more you spend on credit, the more rewards you earn. In turn, these points can be turned in for travel rewards (flights, hotels, car rentals, etc.), entertainment tickets, merchandise or coupons. Some credit card programs even have a cash- back option. Imagine being paid-earning real money-each time you make a purchase. You can earn several hundred dollars of year simply by making routine purchases, like groceries and gas, with your credit card rather than cash or debit. Forward- thinking individuals may appreciate cash back options that deposit reward money directly into a high- yield savings account where it can accumulate and grow.

6. Fraud protection: Identity theft and fraud are serious problems, but using a low- interest credit card can help protect you and your family from the potential financial fallout of something as simple as losing your wallet. Rules vary from region to region, and from one credit card company to another, but many credit card providers offer significant protection if your card is stolen or if fraudulent purchases are made with your card. Additional insurance may also be offered for a nominal fee.