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Regardless of your personal credit history or even a poor credit score, you should still be able to acquire a low interest credit card. The first thing to understand about most low interest credit card offers is that they tend to be for a limited time period.
What does that mean? Basically, most modern credit card companies cannot extend significantly lower interest rates than their competitors for the life of the account. They can, however, do so for a limited time frame such as six months and up to two years.
Where do I find offers for a low interest credit card? The Internet is a great resource for anyone seeking out a credit card with a lower interest rate. A search for “balance transfer” cards, “low APR” and “introductory rate” credit cards will yield a seemingly endless variety of cards and account styles to choose from.
Currently offers are available for a low interest credit card that rewards airline miles, “points” that yield cash returns and even 0% interest for a fixed period.
Why should I find a low interest credit card? There are many reasons to seek out such offers. For example, people who cannot pay their balance in full each month would want to pay as little interest as possible. Alternately, you might be carrying a high balance on a credit card on which you also have a high interest rate. To reduce the total amount of the debt you could transfer the balance to a low interest credit card (perhaps even one that offered zero interest for a fixed period) and really work hard to reduce the debt.
Are there fees for these cards? Each credit company is different, but the majority of offers require no annual enrollment or membership charges, though a majority do require some sort of balance transfer payment. This means that an account holder would be charged a small percentage of the total amount transferred at the time the account is opened. Is this something you should do? It depends on the amount of the debt and your intentions to pay it off.
For example, if the low interest credit card account will ask for a five percent transfer fee and the total debt is one thousand dollars, it means a fifty-dollar fee is going to be attached to the account. If the account holder pays off the debt during the 0% period they will have paid only the fifty dollars extra. If, however, the account holder leaves the one thousand dollar balance in their existing account, with an interest rate of twenty-five percent, they might pay up to $21 per month in interest, or over $120 during the six-month period. Clearly, it pays to investigate a low interest credit card option.