If we can just pay off all of our credit card monthly charges before they fall due, we certainly would do so to avoid paying exorbitant interest rates. Unfortunately, most of us cannot afford such concessions. Thus, we go for the next best thing: a low rate credit card.
Low rate credit cards are best for those who can’t seem to get rid of their increasing credit card balance every month. Credit cards charge interest on interest, which makes it easy for balances to snowball into unmanageable debts. Thus, in order to at least temper this most likely scenario, a low interest card will certainly come in handy.
However, be careful in choosing the right credit card. Given the demand for low rate cards, credit card providers capitalize on this. You will notice that most credit card issuers use low rate offers as a lure to entice consumers into getting their cards. There are countless offers of the self proclaimed lowest interest rates, zero APRs, and the like. However, of the hundreds of similar offers, only a few of them are actually truthful to what they claim to offer.
Most of the low rate cards are low rates only for a very limited period, six months at most. After the expiration of this period, interest rates are then increased to shocking rates. Thus, it is important to identify which of these low rates are only introductory rates and which ones are actually fixed. Check out the small print or call the credit card provider to get the details on how their so called low rates work.
How about those offering really low fixed rates? It’s not time to celebrate yet. Credit card companies will not usually offer this to just anyone or without any compensation for them. When you apply for one of these cards, you’ll likely find out the really low fixed rates are actually available only to those who qualify. These requirements are usually very stringent such that only those who do not need low rate credit cards will qualify.
Despite all these misleading practices by some credit card companies, you can still find a low rate credit card in the market. It is crucial to make a credit card comparison to identify the best deals available and to avoid the above pitfalls common in this type of credit card.
