Switching to a one of the many low interest credit cards that are offered by major carriers such as Discover, Citibank, Amex, Chase and Bank of America is an ideal strategy for reducing your heavy monthly fees. Before switching, make sure you know exactly what the lenders are offering.
A low interest card may seem enticing at first. Often times if you read the fine print of the agreement you will see the lenders make up for their low interest by charging an annual fee or what they deem low interest may actually be high.
Low interest credit should be below twelve percent after any introductory offers. Low interest cards allow the credit card holder to focus on paying his or her debts rather than battling the high monthly interest rates.
How Can This Type of Credit Card Benefit You?
It can definitely benefit the customer if done carefully and with a little attention to the terms and length of the lower interest. Getting low rate credit cards may be a little more challenging. Your credit history will need to be in good standing with no recently missed payments. If you have excessive credit card debt or have filed for bankruptcy you will not qualify.
If you plan on transferring a higher interest card balance to a lower rate card, start out by investigating the terms and agreements of the new card. Generally lower interest rates will last from four to fifteen months, after which rates can jump to anywhere between ten and eighteen percent.
Not paying attention to these changes is where the credit companies really make their money and can lead you right back to where you started with paying higher interest. Make sure to pay each month even if it is the minimum amount due.
Many low interest cards offer rewards programs. Bank of America offers an incentive that allows customers to earn one point for every dollar spent on the card. The reward points accumulate and then can be used for hotels or travel discounts.
There are also low interest credit cards that offer fraud protection, and identity theft protection. A low interest credit card might be the right solution to easing some of the stress of higher interest payments and help maintain good credit ratings.