If you carry an outstanding balance on your credit card, you're not alone. Nearly 70% of Americans keep a balance on one of their credit cards from month to month. And many of these cards have sky-high rates, which add up to hefty amounts in interest expense. By switching to a low interest rate credit card, you can save hundreds of dollars in interest. Starting with great introductory offers, low interest rate credit cards help you get back on track while enjoying the benefits of a credit card.
First Offers
Credit companies continually offer customers incentives to sign up for their cards. This often includes an initial 0% interest rate. Many low interest rate credit cards carry this 0% APR feature. It allows you to begin saving even before the low interest rate kicks in.
The interest-free time is yours to take gain of. You can create purchases and pay for them over a period of a few months, with no further cost. If you bear a marvelous balance on another credit card, you can turning over it to your new one. Then pay off the debt through the 0% APR time period. Before you do so, though, in no doubt to check that the cost for a balance transfer is fair.
Considerable Savings
Low interest rate credit cards allow you to save even after the introductory period. Consider the difference between a credit card that charges an interest rate of 9% and one that charges 20%. If you have a 9% rate and carry a balance of $2,000 for an entire year, you will pay $180 in interest. With the higher rate of 20%, the interest expense rises to $400. That comes out to a difference of $220, which is a considerable amount. If you apply this figure to the principal balance, you will be able to pay off the debt much more quickly.
Check the Attached Fees
When looking for a low interest rate credit card, you will want to compare the various offers. In addition to looking at the interest rate, check the fees attached to the card. Some low interest rate credit cards include an annual fee, charges for balance transfers, and other costs. If the interest rate is low but the other fees are high, your overall savings may be reduced. For this reason, it is important to compare the interest rates and the other costs.
Start a Payment Plan
Even with the savings you'll receive from a low interest rate credit card, it is wise to create a plan to pay off your balance. An uncomplicated way to do this is to ensure the minimum payment due every month, double that amount, and apply the extra cash toward the principal balance. If the payment due the next month is less keep on to pay the initial amount you chose. This allows you to decrease the outstanding amount in an organized, structured way.
Low interest rate credit cards are an excellent option if you regularly carry a balance. Over time, they can allow you to save a significant amount of money in interest expense. Check out your options online and then apply right away. You can take advantage of low interest rate credit cards immediately and benefits from the savings.
First Offers
Credit companies continually offer customers incentives to sign up for their cards. This often includes an initial 0% interest rate. Many low interest rate credit cards carry this 0% APR feature. It allows you to begin saving even before the low interest rate kicks in.
The interest-free time is yours to take gain of. You can create purchases and pay for them over a period of a few months, with no further cost. If you bear a marvelous balance on another credit card, you can turning over it to your new one. Then pay off the debt through the 0% APR time period. Before you do so, though, in no doubt to check that the cost for a balance transfer is fair.
Considerable Savings
Low interest rate credit cards allow you to save even after the introductory period. Consider the difference between a credit card that charges an interest rate of 9% and one that charges 20%. If you have a 9% rate and carry a balance of $2,000 for an entire year, you will pay $180 in interest. With the higher rate of 20%, the interest expense rises to $400. That comes out to a difference of $220, which is a considerable amount. If you apply this figure to the principal balance, you will be able to pay off the debt much more quickly.
Check the Attached Fees
When looking for a low interest rate credit card, you will want to compare the various offers. In addition to looking at the interest rate, check the fees attached to the card. Some low interest rate credit cards include an annual fee, charges for balance transfers, and other costs. If the interest rate is low but the other fees are high, your overall savings may be reduced. For this reason, it is important to compare the interest rates and the other costs.
Start a Payment Plan
Even with the savings you'll receive from a low interest rate credit card, it is wise to create a plan to pay off your balance. An uncomplicated way to do this is to ensure the minimum payment due every month, double that amount, and apply the extra cash toward the principal balance. If the payment due the next month is less keep on to pay the initial amount you chose. This allows you to decrease the outstanding amount in an organized, structured way.
Low interest rate credit cards are an excellent option if you regularly carry a balance. Over time, they can allow you to save a significant amount of money in interest expense. Check out your options online and then apply right away. You can take advantage of low interest rate credit cards immediately and benefits from the savings.
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