Monday, 18 June 2012

Compare Low Interest Credit Cards

How to Compare Low Interest Credit Cards

One card does not fit all, so while a low interest credit card sounds like the best option it may not be, but before making a final decision it is good to compare the various cards on the market. When comparing credit cards with similar interest rates, consider the following before making a decision:

It is always wise to make sure you know exactly what you are getting yourself in for when making any financial decision, in other words read the small print.

1. Rewards.

Does the card offer cash-back or other rebates, such as air miles? Do you get an immediate discount on certain goods or at certain stores when you use it? Do you receive coupons for using it?

2. Benefits.

If you travel internationally or make purchases in foreign currencies, check to see if the card has a foreign currency conversion fee. If you rent cars frequently, check to see if the card provides free or reduced rental insurance.

If you need to use a check or get cash from your card, compare the interest rates/fees associated with cash withdrawals.

3. Length of Offer.

When looking at a low-interest card, the most important thing to be aware of is how long the low-interest rate lasts, and what the rate will increase to when the special offer expires.

If you plan on card-hopping, then select the card whose low rate lasts the longest.

However, if you plan on keeping a balance on the card for a while, you should consider both the length of the initial interest rate period, and what the rate will be afterward. For example, if you plan on carrying a balance for more than a year, it would be better to take a card with 0% interest for three months and a final rate of 9.99% than to take a card with an interest rate of 0% for six months and a final rate of 19.99%.

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