Low Interest Credit Card

Save Money with a Low-Interest Credit Card!

Without question, the single most important factor to consider when choosing a credit card is its interest rate. There’s nothing that can help or hurt you more than this single thing. When you choose a card, it is essential that you look beyond its introductory rate. The majority of the time, this low rate is only valid for one to two months at most. After this, the rate will climb to ten percent or higher. Ten percent doesn’t sound like a lot, but if you carry a balance of one thousand dollars continuously for two months on your credit card, that’s an extra two hundred and ten dollars!

A good credit rating will help you achieve a low interest rate on your credit card. Many times your interest rate will be calculated on your previous rates of payment on that particular card. So, if you’re a good customer and you pay your balance off at the end of each month, your card company may reward you with a lower interest rate. By the same token, if you continuously run a high balance on your card, your credit card company may (and probably will) increase your interest rate as your balance climbs.

Please keep in mind: all of this is much, much less important if you simply don’t keep a balance on your credit card from month to month. Even a credit card that charges some ungodly rate like fifty percent or higher, won’t be able to charge you a thing if you pay the full balance of the card off at the end of each month. Don’t live beyond your means.

The only valid reason to carry a balance on a credit card from month to month is because of an emergency such as an essential medical procedure or emergency repairs to your car so that you can get to work. A new sofa or wardrobe is not essential. Be smart – treat your credit cards kindly and they will treat you the same – don’t overwork them.

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