If you carry a balance, low interest credit cards can mean more savings. The bigger the balance you carry, the bigger sum of your money will be saved. As more money gets saved, more money gets stored and more interests will roll in your bank account.
As a rule of thumb, if you always have a credit card balance at the payment-due date and have a perfect credit history, a lower interest rate is the main benefit you need to aim for from a credit card issuer. Other benefits such as reward points and lower annual fees may interest you but depending on your financial situation, a lower rate usually means lower total costs for you.
Transferring Your Balance to a Low Interest Credit Card
Many credit card issuers lure new customers by offering low-interest or even 0% interest credit cards for balance transfer. You can find the best offer by comparing many balance transfer credit card deals — lower or zero introductory interest rate. Make sure that the introductory period is significant or more than 12 months. Also, ask about the interest rates after the introductory period is over.
Try to get transfer fees waiver, if possible, because the fees asked by banks for transfers are actually interest rates in disguise. If not, make sure that it’s a low fee. This fee should be equal to a low interest rate or you could end paying much more than you actually have to for clearing your debt.
You could pay for balance transfers through pre-printed checks or over the phone by calling up the customer service line of the bank or company. Doing such would cost a lot less or nothing at all and because you chose a low interest credit card you know your expenses would be lower the next time.
Ways to Keep Your Credit Card’s Interest Rate Low
In this strategy you need to be careful because such as short-term low-interest rate will eventually rise even without due warning from your bank or credit card company. If you have a decent credit history though, you could negotiate with the lender to give you a lower interest rate. If they refuse to grant you the rate you’re asking you can switch to a service that offers you a better deal.
If you want to keep the interest rate low, make your monthly payments on time. Ensure that your dues are cleared regularly and you’ll be sure that the low-interest rate remains low.
Again, low APR credit cards are not at all beneficial to everybody. If you don’t accumulate interest charges simply because you don’t have outstanding balance, you don’t need low interest credit cards. But low interest credit cards are your best credit cards if you carry outstanding balance at the payment-due date.