What You Need To Know About Credit Card Low Interest

Introduction

Credit card low interest is basically about credit cards that charge the lowest interest rates. They do not come with as many perks as the cards that charge higher interests but they have their advantages as well. These cards are easier to get if you have a good credit history with the card issuer.

History

Credit card low interest is a type of credit card that charges low interest rates as compared to other types of credit cards. Credit card companies use interest rates as a way of making money and that is generally how they create revenue. The interest is charged during the period of time the card holder has unpaid credit card debt. Interest rates are determined based on a card holder’s credit history, as the card issuers have to factor in the credit risk before issuing a credit card.

This therefore means that interest rates will vary from card to card. Credit card low interest can be as low as 6-12%.The typical credit card interest rates range between 7-36% depending on the risk evaluation methods used as well as the card holders credit history.

Credit card low interest is advantageous when the holder carries a balance and needs to keep the interest low. The best way to make sure your interest stays low is by making all your card payments on time. This will reflect well on your credit history and ultimately reduce your card risk.

Features

Credit card low interest cards are the best choice when you want to apply for when shopping or financing vacation. You can also use them to pay off higher interest loans. They can be a good deal because they offer you low rates over a long period of time and most offer a very low introductory rate that range from 0-3.99% per annum.

However, it is advisable to go through the terms of your credit card low interest as some of the introductory rates may just be for specific purchases and balance transfers. These introductory rates usually last up to about 6 months to one year. After this the APR on the low interest cards ranges between 6.5-15.99%.

You should research on the credit card low interest well before deciding on which one to apply for. This will give you enough time to have compared the APR on the cards available and choose the one with the lowest introductory rates and one that lasts for the longest time. This low interest cards require you have very good credit rating in order to qualify for them.

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