Low Interest Credit Card Offers

By Seth Miller

In addition to giving the facility of limited-time low or zero interest on credit cards, banks also offer a variety of add-on attractions in a bid to get more of the market. The idea is to have customers switch their balances from other banks to theirs, thereby allowing them to take over their banking ‘portfolio’. Apart from the low/zero APR feature, the ones that have proved to have the most pulling power in this regard are the no-annual-fees feature and low interest/interest free balance switchover.

With regard to the latter feature, the offer to transfer a balance at little or no interest often proves to have a major hidden catch. To illustrate, a bank that offers balance transfers at something like 5% may levy quite exorbitant charges if the user does not spend a minimum specified amount on the new card. Such a mandatory amount may be as high as $1,000. In other words, the credit card user must first decide whether such an amount is likely to be spent before deciding whether the ‘offer’ is feasible and beneficial or not.

Another add-on feature that attracts customers these days is the cash-back feature, which gives the customer a certain ‘kickback’ on money spent via the credit card. These offers are usually in connection with specific product brands or providers, such as fuel, grocery outlets, chain stores etc. Again, it must be understood that the primary aim here is to generate more revenue for these products and services and are based on arrangements with the bank for this purpose. The ‘kickback’ is, in most cases, quite insignificant – often as little as .25% of the purchase value.

Whether the offers available on any given low interest credit card are actually beneficial to the customer depends on a number of variables. Banks are in cut-throat competition against each other to get customers for their cards and make a number of offers that eventually are of little or no advantage to the end user. Reading the fine print and having a good understanding of one’s own spending pattern is definitely called for before deciding on any of them.

Low Interest Credit Cards provides detailed information on Low Interest Credit Cards, Best Low Interest Credit Cards, Low Fixed Interest Credit Cards, Low Interest Credit Card Offers and more. Low Interest Credit Cards is affiliated with High School Student Credit Cards.

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