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Friday, 25 May 2012

Best Credit Cards With Low Interest Rates

Low interest credit cards can be an important part of one's repertoire of credit cards. Low interest cards are useful for when you need to carry a balance from month to month. They are typically used a way to pay off a large purchase over time. To get the low interest rates offered by these cards though, one must generally have at least good credit.

The most important thing to consider with low interest credit cards is of course: the interest rate. You want as low of a rate as you can get, to minimize how much you will have to pay in interest charges. However, it is not always as simple as that. Many credit cards offer a very low introductory rate, as low as 0%, only to bump you up to a much higher rate (maybe 14.99% or even more) after several months or maybe a year. If you plan to consistently carry balances, you will want a credit card with a rate that stays low.

One other aspect of the interest rate to consider is the rate on balance transfers. If you are carrying balances on your other credit cards, you could save a great deal of money by transferring those balances to your low interest card. The key point to remember is that there is often a transfer fee of maybe 3%-5% to move the balance, so make sure to do the math to see if you will be saving money overall by transferring your balance.

All that being said, here are a few low interest credit cards with particularly good rates/offers and no annual fee:

PenFed Promise Visa: This credit card is offered by the Pentagon Federal Credit Union, to apply you must be a member of the credit union first. Typically, members must be a member of the armed forces or meet other requirements, but even if you do not meet those requirements, you can simply pay $20 to become a member. Even if you have to pay $20, that could be worth it because this card offers a low introductory rate of 7.49% for a full 3 years (36 months). After that, the rate will be the prime rate + 6.74%, which today is 9.99%. The best feature of the PenFed Promise Visa is that is has no fees whatsoever, not even for balance transfers.

Citi Platinum Select MasterCard: This low interest card from Citi is notable for offering an introductory rate of 0% on both purchases and balance transfers for up to 15 months, a remarkably long period of time. Afterwards, the rate will vary between 11.99%-19.99%. The great rate for balance transfers is only slightly soured by the 3% balance transfer fee.

Simmons Bank Platinum Visa: This low interest card is refreshingly straightforward in its lack of complexity and strings attached. There is no introductory rate that will change later. Instead you get a low variable rate that is currently at 7.25% and will continue to stay low into the future. Even better, you have the option of transferring balances onto the Simmons Bank Platinum Visa when you apply without any balance transfer fee, making it even easier for you to take advantage of that low rate.

Visit www.findcashbackcards.com to find bests low interest credit cards on the market.
Good luck..

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