Low interest credit cards

It comes as a surprise to a lot of people but you can get low interest credit cards. Usually these are offered as introductory rates however in some cases you may be able to get a permanent rate that is very low, at least for a credit card. If you have the chance to do this you definitely should take advantage of it.

The advantage of a low interest credit card should be pretty obvious; it has a low interest rate. Almost everybody who has a problem with credit card debt got there because of the extremely high interest rates that come with most credit cards. Even if you don't have a debt problem a lower interest rate can really save you a lot of money. The interest really adds up, a lot faster than most people realize. Even if you only lower your rate by a couple of points you will still end up saving a lot of money so it is well worth doing.

One thing that you do have to be careful with when you are looking at low interest rate credit cards is that in many cases the advertised rate will be an introductory rate. The real rate will be in the small print somewhere. You need to be careful about this. A low introductory interest rate can sound like a great idea but if they regular rate turns out to be higher than the rate that you are paying on your current credit card it probably isn't a good idea. Once the introductory period ends you will be stuck with a card that costs you far more than you saved during the introductory period.

If you have good credit it may be a good idea to go looking for a low interest rate credit card. In most cases you will be able to find a card that has an interest rate that is much lower than that charged by most credit cards. The rate won't be as low as the introductory rates that are offered by most companies to attract new customers. However if you can get a low rate that is permanent it is probably worth switching your credit card.

There are lots of credit cards out there that offer low introductory rates that then balloon to very high rates as soon as the introductory period ends. Realizing this a lot of people think that a good plan is to get a card with a low introductory rate and then as soon as the regular rate kicks in switch to a new card with an introductory rate. This is not a good idea. Firstly because the credit card companies know that people do this. In order to stop it they usually include a clause that requires that you stay with that card for a certain amount of time or the regular rate will be retroactively applied to purchases made during the introductory period. In addition changing credit cards that frequently will destroy your credit.