Credit cards eliminate the hassle of bringing and counting cash every time you make purchases. The use of these cards makes business transactions easier and more convenient. They are commonly used in most commercial transactions nowadays; people tend to be unaware that they are paying more money for the interest on what they paid for the purchases made on their cards. Using a low interest rate card could minimize this extra expense thereby increasing the buying power of your income and makes you free from the worry of swelling credit card debt.
Affordability
Users are made to pay back interest to banks for the credit extended to them. This means paying more than the purchase amount on the card and could continue to grow until the debt is paid.
With a low interest rate credit card, purchases can be made on your card and pay them with low interest rate keeping the repayment down and affordable.
Money-saver and Debt Reduction
If you have credit cards with higher interests, you may transfer the balance of your account with higher interest card to a low interest rate card. This way, you can save money in the long run and keep your balance low until you have paid it. You should inquire from your credit provider for the facility of transferring balance from one card to the other.
Flexibility
Since these types of cards keep your balance low, you can chose to defer payment in favor of settling other debt or using your fund for some urgent need that may crop up. Your credit card therefore gives you flexibility in the use of your funds.
Other features of the Low Interest Rate Credit Card
Depending on the bank or credit company, low interest rate credit card usually carries along some marketing offers to lure potential users. Aside from the reduced rates on purchases, the companies may offer zero percent interest in the first six or twelve months, low balance transfer rates, reduced interest rates on cash advance and reward programs, although in some cases, some of these benefits like reward program are usually associated with the higher interest.
Who should apply for Low Interest Rate Credit Card?
If you are a person who prefers saving money, maintaining low debt balance and having flexibility of funds over other benefits that companies offer to subscribers, then you should look for this type of card.