A client with a good or excellent credit history is entitled to choose from a greater variety of cards than a person with low, bad or no credit. The former qualify for deals with better terms and more favorable features. The most sought after option within this demographic is the Low interest credit card. These cards are cheaper and more affordable in the long run.
Advantages of Low Interest Credit Cards
A low interest credit card effectively saves the interest accrued on the user’s balance as they have a relatively low regular APR. It is especially recommended for users with a permanent card balance. These cards are best suited for making large purchases.
The Introductory 0% APR Period
The most favorable time to benefit from a low interest credit card is during the zero percent APR period. With most cards, this period lasts up to 12 months. However this may vary for balance transfers and purchases even within the same card. For instance, the intro zero interest period for the Blue from American Express Card lasts for 6 months for purchases only.
Best Low Interest Credit Cards in the Market
Low interest credit cards usually do not charge an annual fee. The Discover More Card is one of the best cards in this segment. Apart from a $0 annual fee, it has a long introductory APR period of 12 months for both balance transfers and purchases. Its regular APR can be as low as 11.99%. The Discover More Card offered by American flag has an equally low regular APR. However the intro period lasts for only 6 months.
Low APR Rate of Low Interest Credit Cards
The next most crucial indicator of a good low interest credit card is its regular APR. Many card issuing companies negate the loss incurred during the intro period by hiking the regular APR to exorbitant rates. The Blue Cash from American Express Credit Card from American Express has one of the highest regular APR of at least 17.24%. Following closely on its heels is the 15.24% regular APR of the Starwood Preferred Guest Card from American Express.
Go for Cards which Continue to Offer low APR after the Introductory Period
Most cardholders opt for cards which stick to the lower spectrum of regular APR rates after the expiration of the promotional period. This rate usually does not decrease lower than 11.99% for most cards. Such low interest credit cards elicit savings even during transfers from high interest cards.
Other Benefits of Low Interest Credit Cards
Low interest credit cards are frequently coupled with other beneficial and profitable features (such as a rewards program). However a potential consumer should not be carried away by these schemes as not all of them are favorable. Sometimes the reduced APR can overcome any lack in this regard. Thus the card becomes armored with the dual benefits of low interest and rewards credit.
Saving interest is imperative to judicial money management. Many cardholders overshoot their loan amount in interest and fees. A low interest credit card can be used to mitigate the situation.