Saturday, March 24, 2012

Inside Low Interest Credit Cards

By Rebecca Taylor

So few qualify for low interest credit cards, which could be a great financial benefit for anybody eligible. Since the rates are so low, it becomes much easier to expediently pay off your balance. If you are among the rarefied few qualified for these cards, you can either use them for everyday purchases or for those larger purchases. If you are researching low interest credit cards, consider these factors during your search.

Credit Score

It is a gospel truth that your credit has to be great if you want a low interest credit card. There are several scores that fall in the "excellent credit" and in the "good credit" groups in terms of the credit bureaus. The bottom line is, your credit should have little to no blemishes in order to qualify for these cards. However, if your score does not fall into these groups, you will most likely not be able to get any low interest credit cards. These cards are for the lowest risk cardholders, which are those with nearly flawless credit score.

What are the Rates?

For those that do qualify, low interest credit cards offer great rates. Most commonly, a cardholder would qualify for rates between 9% and 15%. These would be the perfect cards if you need to make a significant purchase - you may carry a high balance for a while, but the interest charged thereof will not be as great as it would be on an average card. And as the rate goes down, so do the finance charges on your bill, if any. So, be sure to shop around before committing to a card.

Introductory Offers

Another thing about low interest credit cards would be the introductory rates - they are as close as you can get to rock bottom. In fact, a lot of low interest credit cards would give you one full year with zero APR. This is an amazing opportunity for cardholders to charge without any fees attached.

This is still a profitable situation for card issuers, as most cardholders who own these cards would make it a point to pay off their balance each month, even if they do not get charged interest for the promotional period.


Very rarely are there ever annual or enrollment fees on low interest credit cards. Remember - these credit cards are the cream of the crop! Hence the sheer impracticality of imposing fees - those would only dissuade customers from applying. If in the unlikely event you encounter a card that insists you pay an annual fee despite your spotless credit, then they deserve not your business but castigation in the consumer reviews. Kind of defeats the purpose - why charge an annual fee to somebody whose credit is beyond reproach?

In summation, low interest credit cards are a boon to anybody who would want their credit card bills to remain as manageable as possible. With less interest to pay on your bill, that would leave more to spend for other things and of course, a more affordable bill to pay. However, we must remind you again to do the needed research on low interest credit cards. Some cards may give you the low interest rate for the first few months and then raise it dramatically. Just remember to do your homework on your credit card and you should do fine.

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