Using A Low Interest Credit Card

By Robert Alan [ 27/05/2006 ]

Most credit card companies have low interest credit cards. Usually these will come with a low or no interest rate credit card for six to twelve months. On top of that, these cheap credit cards will go to a high fixed rate or high variable rate card at the end of the free period. These are great cards if you can play the debt off in the specified time; if you can't then they will cost you plenty over the long haul.

They are also good for some purchases. Let's say your washer or dryer goes out, and it will cost more to repair than to replace. You can get this type of credit card to purchase your new washer and or dryer from any store you wish, and then have six months to pay off the $300 - $500 dollars instead of renting or waiting.

With this type of card you will have to be willing to part with it once your time limit has expired, after that the rates are like the junk cards you get in the mail, upwards of 18 per cent interest. A few will say different, and be as low as 10% if you have perfect or close to perfect credit rating. If you have missed or were late in the last year, it could jump as high as 25%.

There are a few people that want to use these cards as account transfer holders. It sounds good to put a 5 to 30 thousand dollar debt on these interest free cards for six months to a year. There are many downfalls to that type of thinking. If you think you are paying way to high of an interest rate now, then if you are a day late with these cards, you will find yourself at 21-25% interest right away. They make their money on you missing a payment or being late with one so they can take away the interest free for the rest of the time period.

This brings us to how they make their money. The card is only interest free as long as you are not late. You can call in and make arrangements on these cards, but what you won't hear is that next month they will charge you interest right away, you broke the agreement with them. So your free card now has a 18 per cent or higher rate the rest of the six months to one year period, making it almost impossible to get a decent rate on a new card.

These cheap credit cards are what I call "throw-a-way" cards. Use them once for a small purchase, then cut-them-up and throw them away. Remember even on your small purchase you cannot really make arrangements or be late.

The key to using these low interest rate credit cards successfully whether for a down payment on a new car or buying a spa is to make sure the payments are within your budget before you actually use it. If there is any reason at all to not be able to make that monthly payment on your low-interest credit card you are out of luck. However if you are one of the lucky few that can make those payments on time for your new purchase, then by all means get the card now and get the things you want. Remember whether it is six months or twelve months will make a huge difference as well as begin able to make your payments. If your credit rating is good, there is no need to go without the things you want right away.

Use the link below to compare different cards that you may want to have. Try not to go overboard; one card at a time should do you well. By getting one card every six months you basically get something above average for yourself or family a couple of times a year.

About the author:
For more on what to watch for in a low interest credit card, Robert Alan recommends that you visit CreditCardAssist.com

Article Source: http://www.Free-Articles-Zone.com

Getting Low Interest Credit Cards

By Robert Alan [ 12/06/2006 ]

Right now, there are a lot of people who are enjoying the freedom of getting and using low interest credit cards. Others are struggling, and slowly finding themselves starting to be overcome by the high interest rates on their cards. You know the story, at first, it wasn't much, but now that you have added a lot of credit onto those cards, and frequently use the plastic, the amount you pay each month in interest has become a bill in itself - something that you do not need.

So, you ask, how can you get that low interest credit card? You know those ads for more credit cards are always coming in the mail (your email, too), and truthfully you're more than a little tired of it. In fact, you have probably also noticed that the more money you owe - the more credit card applications you receive. Here are some steps you can take to get one of those low interest credit cards.

Look At The Percentages

While getting all of those applications in the mail, it is best that you take a few minutes to carefully read between the lines before applying. The promises may indicate a low introductory rate, often a gimmick used to get you to apply real quick - without reading the small print. Card companies will give a 0% interest introductory offer, and then it may go sky high after the initial offer is over. Even if you do not have that 0% introductory offer, but the card has, say, an 8% interest level for the life of the card - this latter offer could be the better one.

Many cards, the so-called cheap credit cards, may offer you a 0% balance transfer, and possibly even a 0% interest for a specified period. After that period, though, if you do not have it paid off - it may be time to find another cheap credit card to transfer your new balance to.

Look At The Conditions

In general, it is true that it takes a good credit rating in order to get one of the low interest credit cards. So, you may need to accept a little higher interest card than what you are hoping for, use it to get better credit, and then look for a low interest credit card after your credit improves.

Lately, some credit card companies have been raising the interest rates on credit cards for rather simple infractions. This could include anything from a single late payment, to paying your utility bills a day late. This is another matter to look into if you may be prone to make late payments. Know what the top rate of the card may be.

Look At Smaller Card Companies

The major cards, like Visa and Master Card, do not have to make such special offers - simply because they are the larger companies. But smaller companies, like Discover and American Express, make some really attractive offers in order to draw the new customers.

Look At The Rewards

Other cards, while possibly not being as low as some of the others, may offer you some good rewards. Of course, this type of card only has real value if you can benefit from the rewards. For instance, a card giving you free air miles is useless - if you never fly anywhere. While it may not lower your interest so much, the rewards could definitely save you in money elsewhere.

Another option is a card with Cash Rewards program. Usually this is given if you pay off the credit card debt with each month's billing period. This is certainly an additional savings - even above the fact that no interest is charged.

Look To Reduce Your Rates

One thing that could be very helpful in you getting those low interest credit cards might be something real simple. Through surveys, it has been found that about 51% of the people that just asked for lower rates from their current credit card companies got what they wanted. This definitely is worth a try - whether you call them, or just write a letter asking about it.

About the author:
For more information on low interest credit cards, Robert Alan recommends that you visit CreditCardAssist.com

Article Source: http://www.Free-Articles-Zone.com