The Advantages of Low Interest Credit Cards

By ccflyers on May 2, 2009

People with good or excellent credit have a broader range of credit card offers to choose from. And the deals they can qualify for usually come with better terms and more favorable features than card offers that bad, fair or no credit owners are eligible for.

Though good credit gives you more opportunities to get the best credit card for you that will perfectly fit your demands, you often face the product-mix problem. The variety of plastics is so wide that it is extremely easy to get lost in the jungle of credit card offers. Balance transfer cards, rewards credit cards, low interest plastics, business credit cards, cards with instant approval –  Which one is your Mr./Mrs. Right?

Low interest credit cards are one of the most popular and frequently searched for credit card types. Such cards come with low APR (annual percentage rate). This credit product allows you to save on interest accrued to your balance. This kind of cards is favored by customers that permanently carry a balance on their credit cards and for those, who make large purchases.

As a rule, such offers also come with 0% APR promotional period. Within this time frame you do not pay any interest on your credit card. This is the time when you get maximum profit from your credit card deal, saving on the interest. But you should not fall for introductory period only. In case your promotional period is over and your APR skyrockets up to 20% the credit card issuing company will easily get back all the money they lost during your intro period.

But if you choose an offer with an interest that will change into a fixed low one after a promotional period, you will definitely profit. A low interest card is also a great way to save on interest when transferring a balance from a high interest credit card to a low interest one.

Besides, getting a credit card with such a beneficial feature as a low interest rate, you are not bound to lose other profitable options. For instance, you can find a low APR credit card with no annual fee or a rewards program. This way you can get like two cards in one – a low interest card and a rewards credit card. A rewards program will, most probably, be not the most favorable one, but the APR will be significantly lower.

An opportunity to save on interest is a very important issue in your personal money management. People oftentimes overpay up to 25% of their loan in interest and fees. So, next time you start browsing through tons of credit card offers, don’t let low interest credit cards slip your attention.

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