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					Title:
Substantial Savings from Low Interest Credit Cards


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724


Summary:
This article describes how to secure substantial savings from the use of low interest credit cards



Keywords:
Low Interest Credit Cards,Low Interest Rate Credit cards,Cheap Credit Cards



Article Body:
A host of low interest credit cards is already in the e-marketplace favoring those with a revolving credit - in
other words, those who carry a monthly balance. The interest rates on these cards tend to be around 10%
while the rates on normal cards could be as high as 16% to 18%. The interest rates offered on these low
interest credit cards could be fixed or variable. The fixed interest rate is relatively low in comparison to the
variable interest rate. Fixed rate is advisable for those who carry a balance every month. Good credit history
is required to get these low interest rate credit cards, which makes it difficult for many potential customers
to acquire one.


How Do The Credit Card Companies Make Money?


Low interest rates charged on these cards are compensated in various ways by the credit card companies.
Some of it includes, high annual fees, low introductory offer for only a limited period, and high transfer
rates.


Searching For the Best Low Interest Credit Cards


The Internet is the best resource to evaluate various low interest rate credit cards. Since the credit card
market is cluttered with various options, these low interest credit cards are marketed aggressively. A
potential cardholder can negotiate the average interest rate from 10% to 6% if they have an exceptionally
good credit rating. In case you have poor or low credit rating, you can negotiate with the credit card
company for a better interest rate provided you give enough proof to substantiate steady income and a
potential for your earnings to sustain in the future.


A cheap credit card, with low interest rates, helps you to maintain an increased credit limit at a lower
monthly credit balance. You also need to consider the annual fee for such low cost cards as, in some cases,
the actual interest rate of these cards could work out to be much higher than a regular card. Hence, it is
advisable to choose a card that has low or zero annual fees. Most of these low interest credit cards offer 0%
Annual Percentage Rate (APR) for the introductory period. However, you need to be careful about the rates
offered at the end of the introductory offer as they could escalate to phenomenally high rates after the
introductory period is over.


Therefore, it is important to note the fine print in these offers because if various options are not evaluated
carefully, it may defeat the basic purpose of obtaining these cards in the first place.


A Low Interest Credit Card Helps Saves Money


Low interest rate credit cards can greatly help in debt reduction and management of credit card expenses,
provided care is taken to evaluate the various parameters.


* Balance transfer - Attractive interest rates of 5 to 9% are offered by many credit card companies, which
enable you to pay off debt at a lower cost. It is wise to consider the 0% introductory offer, though it should
not be the primary influencing factor in choosing the card.


* Debt Consolidation - Debt consolidation is best done with low interest rate credit cards. It is financial
prudence on your part to consolidate your debt using a low interest credit card especially since so many
offers are available with little or no transaction fees. Along with incurring lower interest rates, the savings
on these transfers can be used to pay off the principal sum. In addition, debt consolidation with cheap credit
cards helps to track all your credit card expenses.


* Cash Back Programs and Rewards - Many of these low interest rate credit cards in the market, in an effort
to lure the customer, offer reward and cash back programs that allows you to earn reward points for every
dollar spent on your card. In addition, these cards also collaborate with other merchants like restaurants,
drug stores, shopping malls and offer good value for money deals.


So explore all such options before you sign up for the first low cost credit card that comes your way. If you
want low interest credit cards to help reduce your debt burden, you must consider its annual fee, rate of
interest etc. Low interest rate credit cards that offer rewards and cash back do not really help you reduce
debts but they help save money in other ways. So cheap credit cards are only cost effective if you are able to
exploit them to your own advantage.




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