Credit card companies are well known for their low interest offers to attract more and more people to use their cards. The low interest credit card offers several benefits which include reward programs, low balance transfer rates and various other advantages. There are several benefits of using these low interest cards. Some of them are discussed below.
If you have a huge balance which remains revolving for many years, you will be able to make lower minimum repayments using these cards. Or, if you continue to pay the same amount, more money is used towards reducing the principal amount owed. This brings about a reduction in the compound interest and the card balance can be repaid much faster.
Repayments on a card with a high rate of interest could be difficult. By using low interest credit card offers you can reduce the penalty fees and damages to your credit rating also. You will also find it easier to make your repayments on time. Most often, these low interest cards have better introductory rates. Some of them also offer 0% on balance transfers and new purchases for some period of time. Such offers are not available on cards which have higher rates of interest.
A higher credit limit is usually offered for the same level of income. This makes it easier to pay for larger amounts on the same card. The offers on these cards usually vary between different banks. So you have to do proper research before committing to one. Low interest credit card offers are more prevalent during a recession due to competition for customers. So you are more likely to find favorable rates, offers and perks for using them.
If you have been a customer and making payments for a long time on a low interest card, there could be several loyalty programs to reward you. You could be entitled to special deals and upgrades which could benefit you in several ways. These offers are usually not found on cards with higher rates of interest.
So when selecting the best low interest credit card offer, make sure that you get these benefits and your burden of repayment will be reduced to a great extent. You could also be entitled to several offers and deals which could be advantageous. There are a wide variety of cards to choose from. Before you make your choice ensure that you become familiar with all the terms and conditions pertaining to the card you are interested in.