Credit cards can be a useful tool in defining spending habits. When used properly the cards can provide a low cost way of accounting for regular purchases. However, there are times when credit spending can exceed our ability to repay in a timely manner. When this scenario occurs, it may be time to look into low interest rate credit cards.
Why Low Interest Rate Credit Cards?
If you find yourself in a position of paying only the minimum monthly payment then it may make sense to pursue a lower interest rate credit card. By investigating the use of a low interest credit card or cheap credit cards that are comparatively less expensive, you may find that your payment each month will accelerate debt retirement.
A Comparison
If you have excellent credit you might consider the Citi® Platinum Select® Card that features no annual fee and a 12 month 0% APR on both balance transfers as well as new purchases. By having a card that also offers 0% interest on new purchases, you will experience a greater overall savings during your first year as cardholder. The APR is adjusted to a regular ongoing APR after the first year but will not charge you an annual fee. This card does not provide a rewards program, as it is specifically designed for credit management.
If you’d like to combine the benefits of a low APR with a rewards program, you might consider the Citi® Diamond Preferred® Rewards Card. Like the first example, this card provides a 0% APR for 12 months on both balance transfers as well as new purchases. When the card is used for the first time, 5,000 bonus points will be credited to the account and a $50 gift card is made available to the cardholder. Bonus points are awarded for all purchases, but are accelerated for purchases made in drug stores, super markets, and gas stations. There is no annual fee for this card and the interest rate after the first year is very competitive.
The Selection Process
The good news is in the variety of choice in low interest rate credit cards. The cards provide flexibility in both use and attractive rates. A simple online comparison will assist cardholders in making the right choice for your lifestyle. For some it will remain very important to keep the lowest rates without regard to a rewards program while others will prefer the opportunity to gain the added benefits that a rewards program can offer.
Some of the best low interest credit cards will provide a 0% interest rate for 12 months for both balance transfers and new purchases. This type of card remains a positive choice for consumers who carry several hundred to several thousand dollars in credit card consumer debt. Please be aware that most of the available offers for low interest also require good to excellent credit ratings.
