Credit cards are sometimes truly our way of being free. With a credit card, we can buy anything we want. Go anywhere we want. And do anything. This freedom is really dangerous, and most of us could see that, but we tend to let ourselves be tempted with the things we could do. And the end result? Bills, penniless and debts.
And to help us with the growing bills, we will then try to consolidate our debts with another card that has a lower APR. The low interest rate credit cards have charge lower interest charges and are a perfect way to hedge debts. Obviously, we can get a good deal out of this type of card. There are also credit card companies who charge zero interest rates, but only for a period of time. If you take this opportunity and deal with them wisely, you will be definitely getting a good bargain. What would this mean? No more expensive interests and more expenses. Too much for the freedom.
That can be a bad thing for low interest rate credit cards. We see free money or lesser charges; we think we are more free. This is one thing why low interest credit cards are not good for shopaholics. It’s not that it should not be allowed to them, but this is a credit card that would help someone manage his or her debt. It is also used primarily to re-establish a blemished credit history. It is an opportunity to make good of a credit background and not worsen it.
Low interest credit cards can also be a catchy offer, often including “gotchas”. It will be too late for you later on to realize that you haven’t read the terms about interest changes or increased fees. This is why the fine print is called terms and conditions. If you have applied for and was approved to the new credit card, this means you have agreed to the terms and conditions. It is basically a contract, and reading its entirety is a requirement which is usually brushed off by many consumers.
Low interest rates, means low interest fees for credit card companies. Fewer fees mean lesser rewards. But in general, this can turn into an advantage. See, if you are after the rewards, you have to spend a lot of credit, right? But with no rewards, you don’t have to spend much, thus reducing your chances of getting a lot of debts.