Pros And Cons Of Low Purchase Rate Credit Cards

by Thomas Donne - Date: 2010-10-03 - Word Count: 690 Share This!

Low interest credit cards are outstanding until the time period runs out. Most of these offers promote something like this pay just 1 % interest for the next 9 months. They encourage to transfer your high interest rate credit card balances to the new card.

Low interest credit cards appear like a good idea until you scan the fine print. Following the credit crash of 2009, Credit Card parties are to a lesser extent probable to offer up low interest cards, but even when they do, there are some serious drawbacks. If the owner of a credit card pretermits the defrayal due date by one day, the interest rate on the card can be jacked up to approximately 30 %. And you don't have to miss a defrayment for this to happen. I know from experience that another manoeuvre these CC companies use is to penalize people who PAY UP TOO EARLY.

Welfares of Low Purchase Rate Credit Cards.

Plainly, if you 're going to carry a balance on your credit card from month to month, having a low interest rate on purchases will help to keep your interest costs down.

If you 're already paying up high interest rates on your outstanding credit card debt with another bank or store card, applying for a 0 % balance transfer deal will lessen your interest bill to zero for the 1st six months.

When the zero interest offer runs out, make sure the rate will turn back to a low purchase rate. This fashion, if you yet have a balance resting, you'll be paying up a lower rate than some comparative cards.

If you 're thinking of making a large purchase that you know you'll easy pay off within a few months, then a low purchase rate card could be ideal to help keep your interest costs low.

Low purchase rate credit cards are also ideal for those clients who need to avoid turning "credit card slaves", shifting from one 0 % balance transfer offer to another multiple times and ruining their credit rating. By having just one card charging a lower rate, you'll be protecting your credit rating and still holding your costs down.

You may as well find that going through the list of pros amp; cons of low purchase rate credit cards can be a outstanding way to find which will be the best type of card to suit your own needs.

Disadvantages of Low Purchase Rate Credit Cards.

Some cardholders could find their own financial needs might not suit low purchase rate credit cards. These are the customers who are probable to give back their balance fully every month, so they will enjoy the interest free days useable on purchases.

As these customers usually pay no interest at all on their credit card debt, it does no difference what interest rate their account is set at, because they don't hold a balance.

Some low purchase rate credit cards too don't offer up rewards programs or other benefits and characteristics, such as extra insurances, perquisites, travel aid or entertainment benefits.

Something else to keep in mind ; If you jump at one those low offer interest rates, make sure that you ante up your bill on time Before you know it you could be paying up as much as 29.9 % interest and not even realize it until you have time to sit down and analyze your credit card statement.

Selecting a credit card always brings about many alternatives and decisions. You should constantly make an informed decision when dealing with your finances. Credit cards with low interest rates are usually a better pick for consumers who will not always pay their balance off in full each month.

Whether you are concerned in a new credit card exclusively for a low interest rate or its extra features, you should e'er consider your options before subscribing the credit card agreement. Always take it in mind to equate and contrast unlike credit cards useable before making your decision. Remember, an informed consumer is a prepared consumer because when you are dealing with your money and finances, it is ever a good idea to do an educated pick.

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