Low Interest Credit Cards
What is a low interest credit card?
Low Interest Credit Cards are a type of Credit Card that allows people with excellent credit ratings a chance to benefit from low interest rates on purchases made. There are a wide range of companies that offer this type of card however people that have ran into trouble with their credit rating may find that their interest rate maybe considerably higher than someone who has a clean credit report.
What if I have bad credit?
If you have had defaults, CCJ’s and faced bankruptcy it adds to the company’s cost; therefore the interest rate is determined by if you can pay your bills on time. At the end of the day credit card companies need to make money and taking risks come at a cost so interest rates on charges are defined in this manner. If you have an exceptional credit score then the company you have the Low Interest Credit Card with won’t make much profit back, so it relies on income from overdue fees, late bill payments and over limit fees to make its profits. That said, the Low Interest Credit Cards are aimed primarily towards low risk cardholders so it might be worth looking at Prepaid Credit Cards.
Finding a card with low interest rates
Before diving in at the deep end it is worth doing some research first, checking out all the Low Interest Credit Card providers and comparing them to your current circumstances if the best way to go. You may find that some providers still charge an annual fee on their Low Interest Cards which in-turn will make the “Low Interest” pointless if you have a sum to pay at the end of each calendar year. Low Interest Credit Cards also offer some fantastic introductory deals for you including no APR for the first year.
Some advice on finding a low interest card
My advice is to pay your bill off in full each month to take advantage of not having to pay interest rates. This can be a tough measure for a lot of people out there and understandably so, but if you can do this you could save yourself a fortune.