Nowadays, there are a lot of banks and companies offering the low-interest rate credit cards. Each credit card is suitable for each person. Therefore, before choosing the best credit card, you should consider carefully.
In the previous post, Info Credit Free introduces people to some of the necessary information that is useful for getting small business credit cards, to get more information people can read the article The small business credit cards have low APR and others benefits. Now, let find knowledge about the low-interest rate credit cards in the post today.
LOW-INTEREST RATE CREDIT CARDS
Just like a lot of article posts such as credit card deals, unsecured credit cards for bad credit, credit card protector, store credit cards…, this post about low-interest rate credit cards also includes some main parts. They are:
1. What are the low-interest rate credit cards?
Low-interest credit cards help you save money by reducing debt costs: When you pay less interest, you can pay back what you borrowed faster. A card with a 0% APR introduction time will help you save the most in a short time.
Search for an introductory interest-free period longer than a year. If you tend to carry a balance in most months, a low-interest rate card will benefit you in the long run.
2. The advantages and disadvantages of the low-interest rate credit cards
2.1. The advantages of the low-interest rate credit cards
Save money on interest payments
Arguably the biggest advantage for low-interest credit cards is that you will save money on monthly interest payments. If you are a person who tends to carry credit card balances monthly, you should definitely consider credit cards with low-interest rates.
Many credit cards can have interest rates as high as 30%. If you compare this with a low-interest credit card with a 15% interest rate, your monthly payment will be cut in half. This can lead to huge savings and is one of the biggest advantages of low-interest credit cards.
Lower annual fee
Low-interest credit cards tend to have lower annual fees. Depending on the type of card you choose, you can expect an annual fee anywhere from $ 0 to $ 30. This is nothing compared to the $ 120 or $ 150 annual fee you can find. See on credit card rewards.
Helps pay off current credit card debt
If you have a lot of credit card debt, we generally recommend using a balance transfer credit card. Credit card balance transfer is the best option to pay accumulated credit card debt. They offer low-interest rates (or 0% interest rates) for all balance transfers during the deferral period.
If you can use your credit card to transfer your balance responsibly and pay off your debt during the promotional period, this is the best option for you.
A problem with credit card balance transfers is that they have remedied temporarily. They offer a low-interest rate for all balance transfers in the first few months you have on the account. Often the interest rate will then rise to the normal interest rate of about 20%. If you can pay off the accumulated debt in a certain period of time, you may want to consider something longer.
Low-interest credit cards provide an alternative. The interest of these cards does not have limited time. Therefore, you can transfer your credit card debt to a low-interest card and you will save high-interest payments. Some cards even offer the option to transfer referral balances with low-interest rates.
2.2. The disadvantages of the low-interest rate credit cards
No rewards
The big downside of low-interest credit cards is that won’t provide the great rewards and rewards you have received with reward cards. Usually, there is no way to earn rewards for your spending. And your benefits (such as travel insurance and purchases) are very limited.
Low-interest rate trap
If you can carry a low-interest credit card, don’t be too comfortable. Sometimes you may fall into a trap because you have low-interest rates, you don’t feel pressured to pay credit card debt.
Just because you have a low-interest rate doesn’t mean you can earn your debt by not paying your monthly balance. You should always try to pay as much as you can. You should see low-interest credit cards as an opportunity to pay off your current credit card debt and not a time to accumulate debt.
Balance transfers often come with a fee
Low-interest credit cards are a great way to start paying off your current debt. Therefore, it is logical that you want to complete the balance transfer (transfer other credit card debt to a low-interest card). Just be aware that most low-interest credit cards charge fees for all balance transfers.
Say no to advance money
Most low-interest credit cards have high interest rates for cash advances. We recommend that you make cash advances with your low-interest credit card. However, there are a few low-interest cards that do not encounter this problem. Just be sure to shop around and find the right card for you if the cash advance is important to you.
3. The best low-interest rate credit cards
| Credit Card | 0% APR – Balance Transfers | 0% APR – Purchases | Regular APR | CreditCards.com Rating |
|---|---|---|---|---|
| Wells Fargo Platinum Visa® Card | 18 months | 18 months | 17.74% – 27.24% | 4.4 / 5 |
| Capital One® Quicksilver® Cash Rewards Credit Card | 15 months | 15 months | 16.24% – 26.24% | 4.0 / 5 |
| Chase Freedom Unlimited® | 15 months | 15 months | 17.24% – 25.99% | 3.1 / 5 |
| Discover it® Cash Back | 14 months | 14 months | 14.24% – 25.24% | 3.9 / 5 |
| BankAmericard® credit card | 18 billing cycles* | 18 billing cycles | 15.24% – 25.24% | 3.9 / 5 |
| Bank of America® Cash Rewards credit card | 12 billing cycles | 12 billing cycles | 16.24% – 26.24% | 2.4 / 5 |
| Citi Rewards+SM Card | 12 months | 12 months | 15.74% – 25.74% | 3.0 / 5 |
| HSBC Gold Mastercard® credit card | 18 months | 18 months | 13.24%, 17.24%, or 21.24% | 3.1 / 5 |
| Citi Simplicity® Card | 21 months | 12 months | 16.24% – 26.24% | 3.7 / 5 |
| U.S. Bank Visa® Platinum Card | 18 billing cycles | 18 billing cycles | 14.74% – 25.74% | 4.4 / 5 |
This post is about low-interest rate credit cards. We provide this information to offer you some of the necessary information that is useful for getting low-interest rate credit cards. Also if you are looking for information about the gas credit cards, please refer to Some tips for lowering the gas credit cards link we just provided in the previous article.
Hillary (Team Content) – Info Credit Free