Just like there are a lot of flavors to ice cream or a great deal of genres in music and books, there are also a lot of types to choose from when it comes to credit cards. And because credit cards deal with money and finances, just the slightest variation can spell a whole lot of difference in terms of life’s comforts.
Basically, however, there are just two primary classifications of credit cards: the reward type of credit card and the non-reward type of credit card. But what do you think is best for you? Well, the definition of each type should give you a clue then if you’re still unsure on which type of credit card you prefer to own.
The reward type of credit allows you to earn reward points every time you use your credit card. The more money you spend using your reward type credit card, the more points you earn. You can redeem all sorts of prizes with the reward points you earn. The downside however to reward types of credit cards is the high interest rates they charge you.
On the other hand, there is what you’d call the non reward type of credit cards. Non reward type of credit cards does not, obviously, offer you the chance to earn bonus or reward points. But they do however charge the credit card owner very low interest rates. One particular type of non-reward credit card should be the focus of our article today and that’s the credit card that offers 0% intro rates.
Now, now, now, don’t get blinded with the fact that there are the words “zero percent” (0%) attached to the term credit card because all is not what it seems! I’m not saying that a 0% intro rate credit card is a curse – or a blessing – in disguise but only that you should know what you’re getting into first before making any decision that could affect your life.
A 0% intro rate credit card basically allows you to enjoy a zero percent interest rate for a certain period of time. The length of that 0% interest period varies and depends on the credit card company you’re planning to apply to. But after the period or promo expires, you’ll be back to the usual rates and those are the rates that you should start comparing.
If and when you do decide to go for a 0% intro rate credit card, just remember to ask what the rates would be after the promo period expires!
Michael Colucci is a technical writer for Low Interest Credit Cards - A site that offers credit cards with an intro rate of 0% for 12-15 months.
Article Source: ezinearticles.comIf you’re shopping around for a low interest credit card, chances are good that you already have good credit or you’re looking to transfer high balances. In any case, you need to know a few things before you sign up.
1. Shop around
If you’re looking for a low interest credit card, you need to make sure that you’re investigating all of the possibilities. One of the easiest resources is the Internet for comparing various credit card companies and how they can help you. You can see many companies at once and then make your decision that way, instead of having to research each one individually.
2. Read the fine print
Many people don’t take the time to read all of the restrictions before applying for a low interest credit card. While the initial interest rate may be low, there also might be a limited time to enjoy it. For example, many balance transfer offers are only good for a few months or even up to a year. So if you’re looking to pay down a balance by transferring, you want to be sure that you can do it in the limited time.
3. Balance transfers
Because so many people now have outstanding credit card debt, people are looking for ways to cut down their interest payments. This can mean that people are finding lower interest rate cards to transfer to. And in many cases, these offer much lower interest rates than a traditional card. But these can be short-lived offers and will not extend to the rest of your history with the credit card company.
4. Have good credit
Another way to find a low interest credit card is to already have a stellar payment history. The companies will see that you are living within your means as well as paying on time, and they tend to reward this kind of behavior. Be timely with your payments and keep the balances low.
5. Just ask
In some cases, you may be able to turn your current credit card into a low interest credit card by simply asking. Of course, you will have to have a good history with the company that shows that you are paying your bills on time as well as not spending more than you can afford. Call the customer service department and ask if your interest rate can be lowered. It can really be that simple.
A low interest credit card is a great way to start releasing yourself from credit card debt, but sometimes it’s just better to not get into that situation at all.
Beth Derkowitz recommends Find Credit Cards for finding the best low interest credit card for you.
Article Source: ezinearticles.com|
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