The rate on low-interest cards ranges from 10% to 15%, significantly lower than the tourist reward credit card. These cards are ideal if you tend to carry monthly balances. Today’s article we will introduce you the advantages and disadvantages related to low-interest credit cards.
In the previous post, Info Credit Free introduces people to some of the necessary information that is useful for getting the best student credit cards in the US, to get more information people can read the article Somethings about student credit cards people should note. Now, let find knowledge about the low-interest credit cards in the post today.
LOW-INTEREST CREDIT CARDS
Just like a lot of article posts such as credit cards for bad credit, first premier credit card, balance transfer credit cards, best cash back credit cards…, this post about the low-interest credit cards also includes some main parts. They are:
1. What are the low-interest credit cards?
Credit cards with low interest rates make a large balance easier to manage. If you bring your balance from month to month, low interest credit cards can be a good option for you. Browse the best low-interest credit card offers from our partners and compare referral rates, continuous rates, annual fees and rewards to find the right card for you.
2. The advantages and disadvantages of the low-interest credit card
2.1. The advantages of the low-interest credit card
- Save money on interest payments
- Lower annual fees
- Helps pay off current credit card debt
2.2. The disadvantages of the low-interest credit card
- No rewards
- The low interest trap
- Balance transfers often come with a fee
- Say no to cash advances
3. The best low-interest rate credit card
- Wells Fargo Platinum Visa Card: 18-month zero percent APR on purchases, balance transfers for average or fair credit.
- Discover it Balance Transfer: 18-month zero percent balance transfer APR, cash back rewards.
- American Express Cash Magnet Card: balance transfers, 1.5 percent cash back.
- U.S. Bank Visa Platinum Card: a low APR with an 18-month zero percent APR on balance transfers, purchases and no annual fee.
- Chase Freedom: low APR with a 15-month zero percent APR on balance transfers, purchases and quarterly rotating cash back bonus.
- Blue Cash Everyday Card from American Express: balance transfers, everyday cash back.
- BankAmericard credit card: low APR with a limited-time zero percent introductory APR on purchases, balance transfers, no annual fee.
- Capital One Quicksilver Cash Rewards Credit Card: low APR with a 15-month zero percent APR on balance transfers and purchases and 1.5 percent cash back.
- Capital One SavorOne Cash Rewards Credit Card: low APR with a 15-month zero percent APR on balance transfers and purchases and dining cash back.
- Citi Simplicity Card – No Late Fees Ever: low APR with a 21-month zero percent APR on balance transfers.
4. Some types of the best low-interest rate credit card
4.1. Credit card APR low
Credit cards with low continuous APR have lower interest rates than average. According to US research, the average APR for all credit cards ranges from 17 to 24 percent. These cards may also include zero-percent APR referral incentives.
Ulzheimer said, low-interest credit cards may have a good interest rate agreement. Usually, it is difficult to repay credit card debt. [Low APR card] makes servicing repayments less expensive and is really worth it.
Low interest APR cards are ideal for consumers who need a card to buy large purchases over time, may use balance transfers or tend to carry regular balances, Skowronski said.
Although you should avoid bringing the balance completely, it is better to pay a lower rate if you do. Because interest rates are rising, low-interest APR cards may be difficult to appear and some low-interest credit card incentives may increase their APR in the future.
4.2. No percentage of APR credit card introduced
The APR credit card introduces zero percent offering zero percent APR when making purchases, balancing transfers or both for a certain period of time, usually 12 to 18 months. These offers are available for new cardholders to make purchases or transfer balances to new cards. Jeanine Skowronski, executive editor at Credit.com, said Solid Solid balance transfer is a really good option if you are carrying a high interest rate credit card balance.
With a zero-referral APR offer, you have a certain amount of time to pay off your balance without paying interest. If you pay your balance in full by the end of the promotional period, you won’t have to pay any interest. When the promotional period ends, the interest will begin to accrue on any remaining balance.
A consumer with unpaid credit card balance is $ 3,500 with an APR of 18 percent and can pay $ 150 per month. Would it be better to switch to balance transfer card with zero percent APR for 15 months? In this case, there are:
Balance Transfer Card
|Balance||$3,500||$3,605 (principal + fee)|
|APR||18 percent||Zero percent for 15 months and 18 percent thereafter|
|Balance transfer fee||$0||3 percent ($105)|
|Time to pay off||29 months||25 months|
|Total amount paid||$4,350||$3,717|
|Amount of interest paid||$840||$112|
This post is about low-interest credit cards. We provide this information to offer you some of the necessary information that is useful for Pre-approved credit cards. Also if you are using credit cards and would like to know how to borrow money, please refer to the Best loan companies for poor credit link we just provided in the previous article.
In addition, we provide a variety of information on insurance or the Swift Code of each bank in the US in many previous articles. If you are living in the US and want to know about insurance or code, people should read some articles like such as Swift Code Bank of New York Mellon Corp, compare car insurance quotes, best insurance companies, car insurance quotes online…
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