Archive for the ‘Low Interest & No Interest Credit Cards’ Category
Credit is a powerful tool, when used properly. If you are building your credit and maintaining a small to medium monthly balance, you’ll want to carry that balance on card with the lowest possible interest rate, or APR. Most companies offer both high- and low-interest cards; it is generally more difficult to successfully apply for a low-interest card.
APR stands for “Annual Percentage Rate” and it is the rate of interest that the card company will be charging you to use the card. The APR is generally calculated monthly, based on your ‘average’ balance, which takes into account your old balance, new purchases and new fees. It is required that a company tell you the APR before you submit your credit card application. Also, the APR can be either ‘fixed’ or ‘variable’; the variable rates can be tied to many different financial indicators. This also has to be disclosed before applying.
Another to be sure to ask about when applying for any card, regardless of the interest rate is whether there are annual fees associated. Application fees, annual fees, optional (or even required) balance protection insurance, and so on. These also have to be stated up-front, but you have to do the work of finding and identifying them. Some cards charge their annual fee once a year; some divide it evenly over each month. Good to know this when planning on how to use your card. Another thing to look for is the difference in purchase interest rate and cash advance interest rate — cash advance rates are usually higher, and sometimes much higher.
Occasionally, you may be offered a 0% balance-transfer credit card. These cards allow you to “roll-over” a previous credit card balance into a new card, generally with several months of no interest, or very low interest.
Living life today without credit can be a difficult proposition — learning to properly use credit cards can make life significantly easier in the long run. One of the best ways to use credit is with a low interest credit card. They are, at times, difficult to find, but once you find one, hang on to it..
Having a card can be, in some cases, a lifesaving experience. But with credit comes responsibility; you must treat your credit carefully in order not to find yourself in a deep pit of debt and struggling to climb out. There are many websites dedicated to finding the best low-APR credit cards; simply search ‘low-interest credit card’ and you’ll find more than you can imagine.
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People use balance transfer credit cards for a variety of reasons that range from making money from balance transfer and credit card arbitrage to paying down and reducing high interest debt by applying for zero per cent to low interest credit card offers. Those trying to earn money by making multiple balance transfers are usually more focused on finding no fee 0% offers that last for a period of one year and those trying to pay down credit card debt generally have a long time span in mind. Our central point here is to offer some useful and practical help to those struggling with high interest credit card debt. We also help them understand and find more manageable ways of relieving and resolving this financial load.
Credit card debt is especially hard to handle if you compare to other forms of loans for the reason that it is usually associated with high interest rates in excess of 15-20% or more depending on individual’s credit score and history. If the credit card debt remains unpaid for a long time, the interest will continue to accrue, and the balance can balloon out of control very quickly. That’s why it becomes a prime responsibility of people to make a concerted effort towards paying off the debt through regular payment increments. The key to making higher sums of unpaid credit card debt more acceptable while you reduce or make progress on it incrementally is to switch those high interest debts over to accounts that offer lower rates. This can be accomplished by shifting the card balance over to 0% balance transfer introductory APR offers and through the use of so-called lifetime balance transfer credit cards that provide low interest rates. For people who maintain more than average to excellent credit scores, we recommend them to take 0% balance transfer scheme and apply for no interest balance transfers because it offers the least amount of financial investment and no interest is laid on to be borne as long as people continue to pay off regularly each month’s minimum card balance.
The biggest negative point with 0% cards is that the longer duration offers generally impose some type of 3% advanced balance transfer fee. No balance transfer fee is more attractive offers that usually have a very short duration which is limited to 6-12 months periods. Another drawback with 0% offers is that after a period of six months or one year promotional period starts running its course and people will need to apply for another balance transfer card if they like to keep rolling over their interest-free debts. If people anticipate paying off their debt soon within a time period of a few months or within a year, 0% balance transfer is a better option for them.
A large number of people coping with the inability of paying off their credit cards debt in such a short span of time. In addition, many have some tough time managing and handling the stress involved with tracking balance transfer offer expiration dates. They have to worry about if they will qualify for another 0% card offer later on when the time or need arises. Luckily, there are several alternative options for those with considerable amount of credit card debt and options are also available for those who find 0% balance transfers too short and hard to handle.
If you are currently holding a large amount of debt, you may be feeling a bit desperate and frustrated. You probably do not know how to begin reducing your debt, or if you will ever be able to do so. A low interest rate credit card may just be the answer you have been searching for.
Low interest rate credit cards are just one part of becoming debt free. Not only should you look at the benefits of these cards, you should also make a few lifestyle modifications. Take a look at what you are currently spending money on, and find areas you can cut down or eliminate. Put the extra money you are now saving toward paying down debt balances, or even place these funds into a savings account. Once you have done this, you can then move on to examining your credit card debt.
Start off by making the commitment to not add any more to your current balances. Then, take a look at your current credit card debt levels. If you have more than one card, especially more than one card with a high interest rate, you will want to begin eliminating these balances. If you can afford to pay off even just one of these higher interest cards, do so. If you simply cannot swing this at the moment, you should then look into transferring these balances onto a card that will provide a lower interest rate. Be careful when doing this, as you do not want to end up with fluctuating rates, or high transfer fees.
Once you have found a good option for a balance transfer, start by transferring the balance of the card that has the highest interest rate. Use a bit of caution here, as you do not want to immediately max out your brand new card. This can lead to a bit of damage on your credit report. When you have successfully completed the transfer, pay more than the minimum on the low interest card until you have paid off the balance as quickly as possible.
After you have gotten rid of the balance on your higher interest credit card, you may want to consider closing the account. At the very least, cut up the card so you can no longer use it. You really do not need to have a large number of cards in your wallet, and you should only use one credit card for emergency purposes. The more accounts you have open and ready to use, the more temptation you will have to spend, causing more debt to pile on.
Once you have started paying off your debt, continue the process of transferring and consolidating until you have eliminated all of your balances. During the process you should monitor your credit score, to make sure your information is correct and that your payments are appearing accurately. You should not check your score more than once per year, as this may hurt your score by showing multiple inquiries.
By following the above mentioned tips and using your card responsibly, you can be well on your way to financial freedom by means of debt consolidation with low interest rate credit cards. You will be saving yourself a ton of money in interest fees each month, which over time can really add up. By using a bit of self-control you will keep yourself on the positive end of the scale and no longer run the risk of being swept away by the never ending debt cycle.
If you are going to get your self a credit card, then you’ll find several issues in specific that you are likely to need to believe about and truly take correctly into consideration prior to you’ll be in a position to make any valid decisions.
For instance, there is the matter of what interest you are going to be paying on your credit cards, high or very low. Clearly low interest rate credit cards are the way to go, even so depending on the spending limit that you are interested in having, as well as your own personal credit rating historical past, elements like this are going to affect what type of interest rate you happen to be able to gain.
If you want to gain low interest rate credit cards, you then basically have to possess nearly ideal credit ratings historical past, simply because this could be the only way that credit card firms are going to be ready to know for sure that you simply are trust-able and thus that you will likely be equipped to pay off your low interest rate credit cards.
In order to have low interest rate credit cards, you are going to should apply for them, and if you have never applied for credit cards prior to in your life, then you are going to wish to make certain that you go in to your bank and speak to a financial advisor first.
That is because you are truly gonna want to get some advice from someone who is knowledgeable in this field and who thus knows what they’re talking about, to ensure that they can aid you to gain off on the correct foot, and so that you just will have the best odds of really acquiring minimal appeal to credit cards for oneself.
Should you are not equipped to have lower appeal to credit cards, then you should not worry, just make positive that should you do have to acquire high rate credit cards which you spend off your bills each month on time, so which you will have to pay as least attention as possible.
Also remember that the a lot more you build up your credit score, the far better your credit score will likely be overall, and thus the additional likely credit card companies are about to offer you the option of having very low interest credit cards, and so this is obviously a very positive thing to look forward to.
Low interest credit cards can be an important part of one’s repertoire of credit cards. Low interest cards are useful for when you need to carry a balance from month to month. They are typically used a way to pay off a large purchase over time. To get the low interest rates offered by these cards though, one must generally have at least good credit.
The most important thing to consider with low interest credit cards is of course: the interest rate. You want as low of a rate as you can get, to minimize how much you will have to pay in interest charges. However, it is not always as simple as that. Many credit cards offer a very low introductory rate, as low as 0%, only to bump you up to a much higher rate (maybe 14.99% or even more) after several months or maybe a year. If you plan to consistently carry balances, you will want a credit card with a rate that stays low.
One other aspect of the interest rate to consider is the rate on balance transfers. If you are carrying balances on your other credit cards, you could save a great deal of money by transferring those balances to your low interest card. The key point to remember is that there is often a transfer fee of maybe 3%-5% to move the balance, so make sure to do the math to see if you will be saving money overall by transferring your balance.
All that being said, here are a few low interest credit cards with particularly good rates/offers and no annual fee:
PenFed Promise Visa: This credit card is offered by the Pentagon Federal Credit Union, to apply you must be a member of the credit union first. Typically, members must be a member of the armed forces or meet other requirements, but even if you do not meet those requirements, you can simply pay $20 to become a member. Even if you have to pay $20, that could be worth it because this card offers a low introductory rate of 7.49% for a full 3 years (36 months). After that, the rate will be the prime rate + 6.74%, which today is 9.99%. The best feature of the PenFed Promise Visa is that is has no fees whatsoever, not even for balance transfers.
Citi Platinum Select MasterCard: This low interest card from Citi is notable for offering an introductory rate of 0% on both purchases and balance transfers for up to 15 months, a remarkably long period of time. Afterwards, the rate will vary between 11.99%-19.99%. The great rate for balance transfers is only slightly soured by the 3% balance transfer fee.
Simmons Bank Platinum Visa: This low interest card is refreshingly straightforward in its lack of complexity and strings attached. There is no introductory rate that will change later. Instead you get a low variable rate that is currently at 7.25% and will continue to stay low into the future. Even better, you have the option of transferring balances onto the Simmons Bank Platinum Visa when you apply without any balance transfer fee, making it even easier for you to take advantage of that low rate.
APR or annual percentage rate is the combination of low interest rates and finance charges on a credit card. Usually, low interest credit cards offer low APR on purchases made by the customer, with the card.
Most of the credit card companies offer benefits that include special cash back incentive programs and airline miles rewards programs. These cards generally tend to have a higher interest rate than cards that do not offer any programs. A customer can get a rewards credit card with an affordable interest rate.
There are cards that offer 0%, low interest and high interest annual percentage cards. It depends on the customer to decide which card suits him the best. If a person keeps credit pending over a long period of time, then it is best to opt for a low interest annual percentage rate credit card. The zero percent on annual percentage rate credit cards is generally for a short time, during the introductory phase.
The cheap credit card is meant for a person who will carry forward a balance on the credit card from purchases each month and is not interested in receiving a number of special benefits or rewards programs from his credit card.
If the customer is not in the habit of using the credit card very often and also paying the credit card balance completely, then it is advisable to go in for a slightly higher percent interest credit card, with added benefits of cash back and other reward programs.
Low interest rates should not be the only criteria for claiming a credit card to be a good one. There are various features that the customer should take into account before selecting any one credit card. This eventually rests on the card owner’s personal financial status and his preferred paying pattern.