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.
Introductory 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 advantage of. You
can make purchases and pay for them over a period of a few
months, with no additional cost. If you carry an
outstanding balance on a different credit card, you can
transfer it to your new one. Then pay off the debt during
the 0% APR time period. Before you do so, though, be sure
to check that the charge for a balance transfer is
reasonable.
Significant 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.
Create a Payment Plan
Even with the savings you'll receive from a low interest
rate credit card, it is wise to make a plan to pay off your
balance. A simple way to do this is to check the minimum
payment due each month, double that amount, and apply the
extra cash toward the principal balance. If the payment due
the following month is less, continue to pay the initial
amount you chose. This allows you to reduce 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.
----------------------------------------------------
To View Low Interest Credit Cards click the following link:
http://www.credit-card-surplus.com/lowinterest.php . Ed
Vegliante runs http://www.credit-card-surplus.com , a
directory helping consumers to compare and apply for credit
cards.
