Why Should You Choose Credit Cards With Low Interest Rates

Credit cards with low interest rates provide benefits to its card holders in so many ways. The interest rate we talk about here is known as APR (Annual percentage rate). It is generally the interest of the credit that is set for the card holder.

So if you are person who don’t want to keep balances in your credit account and used to pay all the credit amount on the payment date every month this low interest rate will have no effect on you. But this APR will badly affect those who carry balances between the billing cycles.

Interest rate types

Since our aim is to decide on the Low interest rate credit cards

Let’s learn from the basics. Usually when talking about the interest rate in the credit card context we can differentiate into 2.

Fixed interest rate & variable interest rate 

If a credit card company offers a credit card with the variable rate interest what it means is “this interest rate is subject to get increase or decrease based on the company’s decision.”

On other hand if it offers the fixed rate APR this rate will not get change over the time. Likewise when the card holder obeys to the terms of credit card service the rate will not get increased. Here the term obeys includes “no late payments & having the habit of paying the least payment threshold and many”.

Recently credit card issuing companies attempted to raise the fixed rate APR and it made the card holders to get worried and anger. However new law was enforced to product all the credit card holders from this issue.

As per the legislation credit card companies should no longer raise the interest rate on the fixed APR accounts. But the sad truth is “Almost all credit card companies have stopped to offer the fixed APR”.

Low interest rate credit cards with annual fee

If you closely analyze the zero interest credit cards or low interest rate credit cards they accompany with some percentage of annual fee.  So you should note this annual fee and analyze whether it is worth to pay the fee in terms of saving through the low interest rate.

So many other websites are out there which will help you in making the side by side comparisons. In this comparison you can see the factors like low interest rates & annual fee and so on.

Zero interest credit cards

It is not possible to get the zero interest credit cards as the fixed rate credit cards. Only you can get the 0% interest rate in the introductory period. For those who are having an excellent credit rating it’s like they will get any kind of card they are applying for.

But the all Credit card companies want to attract many more credit card customers even with their very tight restrictions. Providing the 0% APR credit cards became one of the best ways to attract so many new customers.

So if you are really smart and want to find out Credit cards with low interest rates take a journey on the credit card comparisons through many reputable websites.

Following are some of the best low interest rate credit cards

Citi® Diamond Preferred® Card
0% introductory APR (applicable for 18 months)
After 18 months APR will be 11.99%-21.99% (depends on the credit worthiness)

Barclaycard® Ring MasterCard®
No annual fee
Low APR of 8% (Variable APR)
No fee will be charged on the balance transfers

Slate one from chase
0% introductory APR (Length is 15 months)
No fee will be charged on the balance transfers