Most of the popular credit sites are said to have to grab headlines in the form of “low-interest rate credit cards.” However, before selecting one, it would be wise to first look at the offer closely to check if this is sure to suit the individual needs and requirements. It is only careful credit card hunting that can help the person to enjoy the fruits of his labor and use the credit card for making essential purchases without any hassle involved.
For instance, there could probably be a wonderful introduction offer of a 6-month balance transfer rate at 2% and APR at 2% that is sure to lure every person intending to avail low-interest rate credit cards!
Checking out the facts
It is essential for the credit card shopper not to jump on such offers without any thorough research and understanding. What the person should be asking himself is what would happen afterward to the rate! It might be detailed in small prints, however, termed to be the key that cannot be avoided. The introductory rate of balance transfer may increase to about 20% or even more and become cash advance rate, while APR is likely to move up to 18% – 20%.
Looking at other essential things
If long-term usage of the credit card is what the person is seeking, then it would be wise to select one who offers him with excellent features and a decent rate which suits his repayment and spending habits. He should consider this aspect first and not get lured by those aggressive introductory offers, which may only create financial hassles in the future.
Knowing the variable rate APRs
When it comes to variable rate APRs, no guarantee is offered about its rates being low for a long time. Credit card providers generally are not likely to have their rates changed drastically unless the prevailing market conditions change. Since the industry is highly competitive, chances are very high of them losing reputation and lose customers to competitors.
A rate of around 13% or so is regarded to be fairly less. With some research, it is also possible to come across providers who may offer rates even lower than this along with good interest-free period and low annual charges.
It is essential for the person to manage his finances tightly. Also, he needs to pay off the full balance of the credit card bills every month on time within the interest-free period to enjoy the benefits. This way, he can ensure not having to pay more and save a good amount of money in the process and be debt free.
There are also other features which may affect the person’s decision, especially if he is looking towards opting for a balance transfer to another card, use the card overseas, withdraw cash from the credit card or searching for specific deals and rewards. Trying to select a few features and ensuring they fit the bill perfectly can help to make great choices.