Low Interest Credit Cards

Low interest credit cards, when utilized carefully, can provide excellent value. This is especially true if you understand the technique of leveraging the zero interest rate offerings.

Paying off the balance on your credit cards every month lets you avoid interest expense and finance charges.  It’s like getting an interest-free loan.

Sounds great, but what about those of us who carry balances on our credit cards?  Is there a way we can save, too?

The answer can be found with low interest credit cards issued by all the major credit card companies such as Visa, MasterCard, Amex, and Discover.

Are you still using a credit card you received many years ago?  Although you feel comfortable with a card you've been carrying around for a long time, this complacency may be costing you a lot of money.

Today, a wide range of offers present incentives to draw people to their cards. Since the competition is so aggressive, you won't have any trouble finding low interest credit cards.

Big word of caution though... be sure to read the fine print.

Your credit history will determine how low your rate will be. If your history has some minor flaws, you may still be able to obtain a lower interest rate than what you're paying on your present card. It pays to shop around.

When you switch to the low or zero interest card, the initial term is usually for six months. When that period is over, the interest rate will go up and sometimes it goes up a great deal.

If you are able to pay your total credit card debt off within the initial period, the card will be very beneficial. However, if you are unable to clear the total debt within the introductory period, your monthly payments will increase.

This can greatly reduce any benefits you gained during the initial time frame. Although credit card companies are required to send you notification of the end of the introductory low or zero time period, be alert. You, and only you, are responsible for your credit card debt.

When your bill arrives in the mail, check it over to be certain there aren't any errors. When you've determined the balance on your credit card bill is correct pay off the entire balance, if it is within your means to do so. This will save you big money on interest rates.

Never pay only the minimum payment. This figure is usually only about 3 percent of the balance. Interest will continue to accumulate on the balance that is not paid off and will cost you big bucks over the course of a year.

In all likelihood, you could go on a nice trip or pay off your car with that money. Use low interest credit cards wisely and they can save you hundreds of dollars each year.

Finally, the ideal low interest credit cards not only provide a low APR for purchases -- they also offer a low variable rate on balance transfers without any balance transfer fees.

Now that's a winning combination... a low interest rate combined with a great balance transfer benefit.