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.
This way you can always seek better interest rate by comparing the
interest rates offered by all the credit card companies and banks. For
example, you can switch to a company that offers introductory lower
interest rate. But remember to make sure that the introductory period is
significant and you can get fees waiver if you transfer balances to the
company from your old card.
Since the fees asked by banks for transfers are actually interest rates
in disguise, make sure that it's a low fee. This fee should be
equivalent to a low interest rate or you could end paying much more than
you actually have to for clearing your debt. Also, remember to ask how
long the initial low interest rate would last and how the company set
interest rates after the introductory period is over.
If proven feasible, you could pay for balance transfers through pre-printed checks. Your best option is to transfer balances to 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.
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.
But if you have a decent credit history 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.
