There are a number of credit cards that are available to suit various needs. You have the standard credit cards as well as the low interest credit cards, as well as balance transfer credit cards. It is always best to ensure that you have the right kind of card for your usage. You must ensure that before signing up for a fresh card or you could end up with a lot of hassles in the future and you may regret your decision. For instance, there are many of us who like to carry forward our credit card balances from month to month. This means that the interest that we are required to pay would be exorbitant and this would push up the credit card debt even further.
Eventually, this could mean that the interest alone would be so high that the principal would not be considered. For such people considering a low interest rate credit card would be worthwhile. These cards generally offer low interest rates and sometimes even 0% introductory rates, unlike the standard credit cards that may charge around 16% on an average on all unpaid balances.
Low interest credit cards – Ideal solution
These low interest credit cards offer the best solution for those with a large existing credit card debt as well as those with short or medium term loans. This is a great way to get out of debt. You can focus on clearing off the existing debt rather than just paying the interest, by just switching your balance over to your new low interest credit card.
Most of the low interest credit cards offer an ideal solution especially if you have a debt that is not really high. In such cases, you can easily pay off the whole principal within the time period which is before the expiry of the introductory rates. Thus you can easily avoid paying any interest rates at all. This strategy will help you save time and money as well, while relieving you off the stress of credit card debt. But suppose, the principal is not paid up entirely by the end of the introductory period, then you could always switch to another low interest credit card. You could cancel the old one and start fresh on a new card with another introductory period. This is what most savvy customers do and this way the credit card debts will not impact their lives to a large extent.
Low interest credit cards – short term loans
However, if you are one of the fortunate ones not to have huge credit card debts then you could consider these low interest credit cards as short-term loans to be used for a specific purpose for example, to pay up for a car, holiday etc. If you have the ability to pay back the amount that you spend within a year or before the end of the introductory period, then you could easily get away without having to pay interest. Hence, this is effectively more like a short-term loan. There are many companies that offer low interest rate credit cards and the information is readily available online as well as from the banks. All you need to do is just look around and shop a bit to find the best credit card offers to suit your requirements.
Precautions to take
Low interest rate credit cards are an ideal choice if you are disciplined with your financial dealings. However, there might be some disadvantages when you take this route. There is always a temptation to build up more credit card debts when you have a low interest card. There is always a tendency to overspend especially since you are aware that you would not be paying the same interest that you would on a standard credit card. Hence, running up a huge debt will not carry the same negative connotations and you could easily be tempted to go overboard with the spending. This will leave you with new levels of debt by the end of the introductory period. Hence, usage of the new low interest credit card should ideally be combined with discipline, where you will not get tempted to overshoot your budget. This low interest card however, is not a magical solution to solve your debt issues, but it can offer a simple solution when it is combined with some of your financial plans and also a change in the old habits.
Shopping online is very important before you sign up. This is one way to make comparisons and get the best deal possible. First, arrive at what you are looking for – whether it is a short-term debt relief or loans and then apply for the low interest rate credit card which you can find. However, if you think that you would be using the credit card more on a long-term basis, but if you are still aware that you will be carrying forward your monthly balances, then you would certainly be better off with the low interest credit card which does not have the introductory rate, but offers a low interest rate on the balances.
Know your credit rating
It is important for you to bear in mind that there are many companies that only offer some of the low interest credit cards to people who have good to excellent credit ratings. Hence, if you have had debt issues then you may have to forego some of these low interest credit cards and opt for something else. Whatever the situation may be, it is ideal that you spend some time and shop around and make an informed decision and not merely sign up for the first card that comes your way. Most of these low interest cards can be found in the non-traditional outlets.
In conclusion, low interest cards offer a convenient solution as they are cheap credit cards. If you have the right mindset and planning these cards will easily help you get out of debt. It is not easy to get cheap credit but with the right kind of research there will be no problem in finding the low interest rate credit cards of your choice. So, if you are looking at solving your credit card debt issues then opt for these cards as they will save you a lot of hassle in the long run and will guarantee peace of mind.