Low Interest Credit Cards
Credit card is a medium of lending loan to a card borrower at the expense of interest rate attached with it. The borrower has to lift the load of extra money taken as interest on the total amount by the card issuing company.
It’s the interest rate that catches borrower on making wrong decision of selecting a credit card costing high interest rate. Else to interest amount, the annual fees and the rewards attached with any credit card do not make high difference on your decision because these amounts are annual and bearing them doesn’t make huge difference on your budget.
Factors behind interest rate:
- The interest rate on some credit cards is fixed and it does not change for any borrower under any circumstance. Credit cards with fixed interest rate charge high percentage of interest and are neutral from market conditions.
- The interest rate on some credit cards is variable and fluctuates depending on the market conditions or market prime rates. In these cards, the interest rates are applied to purchases, balance transfers, and cash advances at varying amounts. The interest rates on cash advances are generally high in every credit card.
- Basically, credit score of the borrower influences the interest rate on the credit card. If you have good credit score on your previous transactions then you may be allowed to come in list of best interest rate borrowers. Low interest credit cards provide benefits of availing purchasing power at lower cost.
- The account balance is a very influential factor in deciding the interest rate of the credit card. The borrower should remain very careful in keeping and transferring requisite amount of money in his account to avail good rewards and interest rate on the credit cards of that account.
Elements of low credit cards:
- The interest rates on credit cards generally vary between 7.25% and 14.99% on purchases; it could go below this range depending on the market condition.
- As the market of credit cards is blooming high, several credit card companies are offering cards on 0% interest rates on balance transfers for a fixed period of time, usually 6 to 15 months.
List of low interest credit cards:
A list of credit cards that charges low interest rates is given below to help you in deciding the right card of your choice: Chase Platinum Visa Credit Card
Citi Diamond Preferred Credit Card
Citi Platinum Select Credit Card
In addition, there are cards which do not demand any annual fee and are free from any cash constraints you have in your account. Plus they give offers and discounts like 1% cash back on every purchase, 2% on major purchase, and many more like this.