If you don’t pay off the balance of your credit cards every month, it is very important to make sure that the credit cards you use have the lowest monthly interest. Finding a low interest rate card that fits your spending and budget needs can be a challenge, but it is worth the effort it entails. Whether you want to transfer your existing high interest balances to a low interest rate card or just want to pay for your future purchases at a lower rate of interest, there are a few things to keep in mind as you comparison shop credit offers.
There can be more than one interest rate for each service one card offers.
Just because a card claims to have a low APR, does not mean that every transaction you make on that card carries the low interest rate. For example, the interest rate for purchases might be 14%, but the interest rate for a cash advance could be 25% and they might even have a separate rate for balance transfers. As you choose your card, keep in mind what its primary use will be and shop for the lowest interest rate on the service that suits you best.
There can be more than one interest rate for different balances on the same card.
Some companies offer a very low interest rate on balances under a certain amount, but allow the interest rate to skyrocket if you spend higher than that amount. For example the interest rate on a balance of $400 might only be 12% but if you carry a balance of $800 the balance might be 16%.
There can be an interest rate that changes after you have had the card for a while.
Try using one of ABC Loan Guide's Recommended Low Interest Credit Card Companies Online.
Read all the fine print before you take a low interest credit card. It is important to make sure that the card’s low interest rate is not an introductory offer that will go up after a predetermined amount of time. Perhaps the introductory rate is 4% but once you have had the card 6 months the rate is going to ascend to 26%. This can be very dangerous if you have an existing balance at the end of the 6 month introductory period, because suddenly your payment will take a substantial leap.