Is A Cheap Credit Card Really Cheap

Category: Finance, Credit.

Low interest credit cards are one of the perks of having a good credit history.

Though credit card companies issue cheap credit cards with discretion, it is possible for individuals with so- so credit to find credit cards that are a good deal. For individuals who do not have a history of bad debts, possess good financials and can show a steady income over a period of time, cards with low APR s are the most cost- effect credit card alternative. With usage of the card and good credit history, their APR can be lowered as their credit" worthiness" improves. The APR or the yearly rate of interest on the card is one of the prime determinants of the financial benefit that your card offers you. The key factors to look into when weighing the benefits of two cards that are competing for your credit are: 1) Introductory APR. 2) The Annual Percentage Rate( APR) 3) Annual Fee. 4) Offers, bonuses etc, rewards. Some low interest credit cards offer an introductory APR of zero. The best low interest credit card offers are those with a long introductory period and a low regular APR on your low interest credit card.

In such cases you need to analyze the length of the introductory period and the regular APR charged after that. Credit card companies usually charge an annual fee. The ideal low interest credit card for you is one which aggregates the cost and benefits in a manner that gives you the maximum financial advantage. However if your credit history is good enough, some card issuers will waive the annual fee for the first year. Having a cheap credit card with low/ no APR, and low/ no annual fee that also offers customer rewards is like owning a luxury car that guzzles little or no fuel! Most importantly, remember to do your comparison shopping to find the right card.

Just Before You Get Your Low Interest Credit Card. For instance, is your low interest credit card a fixed rate or variable rate card? But remember, a low interest credit card rate, like all other credit cards, can be increased only after a 15 day notice when interest rates go higher. Cheap credit cards that are variable rate can be billed at different rates without notification. A little homework before you apply can save you a lot of dollars later. Is a cheap credit card really cheap? Cheap Credit Cards: How Cheap Are They?

There are precautions that must be observed in looking at the cost of your low interest credit card over time. After the introductory period, the interest rate rises to negate the potential financial benefit obtained from the initial offer. Sometimes credit card issuers offer low interest credit cards with an initial APR of zero. Also be aware of the method your credit card uses to charge interest. Low Interest Credit Cards: A Take- Home. 1) Low interest credit cards are optimal for those with good credit. 2) Find out which credit card is in sync with your needs, taking into account the carrying cost( APR) as well as rewards. 3) Be aware of hidden details in your low interest credit card to avoid getting surprised. 4) Use good financial sense once you have acquired your card. Some rate calculation systems like the" two cycle" system may be costlier than you bargained for.

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