veryone needs credit these cash advances from six months to
days and credit cards have twelve months.
become a part and parcel of
everyone’s life. But man has The rates involved in calculating
woven a credit card debt trap the finance charges are usually
around itself. To avoid this debt the interest rates. Other charges
trap low rate credit cards have include the late payment fee,
been introduced. A low rate over limit fee, rates applicable
credit card is usually for those after the introductory period,
who hold a good credit history etc. For those who carry a large
and have considerable repayment balance on their cards opting for
capacity. For example the student a low rate credit card can save
credit card is generally not a thousands of dollars. A low rate
low rate credit card. The travel credit card also offers several
cards issued by some of the other benefits like 5% cash back
reputed merchants like British reward on select purchases from
Airways, NorthWest Airlines etc outlets like grocery stores,
are cards that attract high supermarkets or gas stations and
interest charges. 1% cash back reward on purchases
from other outlets.
If someone carries a large
balance on a high interest credit Citi® Diamond Preferred® Rewards
card then transferring the Card, Citi® Dividend Platinum
balance to a low rate credit card Select® Card, Chase Flexible
can save some honest money. Low Rewards® Platinum Visa® Card,
rate credit card ensures paying Citi® Premier Pass Card, Chase
off large outstanding on numerous Cash Plus® Rewards Visa, Free
cards at an attractive low Cash Rewards Platinum Visa® Card,
interest rates. Some cards offer etc are some of the credit cards
0% APR on balance transfer and that fall in a low rate credit
card category.
Usually it is wise to pay off a
A low rate credit card does not high interest rate card with a
have any annual fee which is low rate credit card. But one
another form of cutting overhead should watch out for the traps of
costs on any credit card debt. high transfer fees and short
Many of these cards offer up to promotional low-term rates. One
1000 bonus points on first should read the fine print.
purchase. There after one bonus Usually the fine print on any low
point is awarded to the card rate credit card states that if
holder for every one dollar the card holder default the
spent. Some of these cards also payment or makes any consecutive
offer checks or gift certificates late payments then the existing
from participating merchants when interest rates dissolve and the
specified amount of bonus points usual high interest rates
are accumulated. For example Free prevalent in the market are
Cash Reward Platinum Visa Card applicable. Finally, the card
offers a $25 check or an holder should avoid maxing out a
equivalent gift certificate from new low rate credit card, as this
many leading national merchants can cause the card holder’s
after accumulation of 2500 credit score to dip.
points.
About the Author:
Peter Sissons, Retired Bank Manager and Unsecured Credit Cards advisor - focusing on Bad Credit Credit Cards and Business Credit Cards
