Should I Get A Low Rate Credit Card?
Low fixed rate credit cards are a type of credit card that everybody needs to have. It does not matter if you are a college student or retired. For people who carry a balance every month it only makes sense to have a low interest rate. With a low rate you are able to pay down more of your principal balance without paying interest. Getting approved on such a credit card is not easy. You need to have excellent credit history. Most people who get approved already pay their entire bill every month. Many people only have them to get the rewards. If you have bad credit then you need to work on you’re credit report so you can get approved. If you have been able to get accepted for this type of card, some banks will offer you rates as low as 2%. Think about your interest going from 21% to 9% and how much faster you could pay down your debts. The banks will have stipulations in the agreement that you pay your bill on time or you risk losing the low rate.
Most of these credit cards come with a low fixed rate for the first 12 months. When doing your research make sure you go through and find out if there are any fees involved. If you plan to transfer a balance there might be a fee involved and it should be considered as interest because you are paying something. Paying off you’re entire balance is the way to go. There is no reason to be giving your money away to big banks. If you are going to make purchases on something you can’t pay in full, take the time to see if it makes sense to use your charge card.
With the low rate you can work towards being debt free. You could knock a lot of time and save large amounts of interest over the life of the balance. Whatever you use the card for don’t forget to stay within the guidelines of the contract. Some reasons why the company would change the rates are late payments and carrying a balance over 50% of the limit. It is a smart financial play to have a low interest credit card in your wallet or purse. Some of them do not have the best rewards programs but its nice to not pay a lot of interest.
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