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Low-Interest Credit Cards – Are They Really As Good As They Claim to Be?

The main selling point of low interest cards are the attractive offers that comes with it. Nevertheless, before you start choosing which low interest credit cards to get, know that offers that accompany them will vary from one company to another. It is best to focus on the terms and conditions first before you start making a decision.

The fact is that a large majority of companies are doing everything they could in order to get new customers and this may include promises of lowered interest rates or no interest charges at all. Before you blindly sign up for a no interest charge card know that these types of offers are only temporary. If you take time to review the most low rate interest credit cards fine prints, you will discover that these introductory rates will only last for 3 to 15 months depending on the offer. The average promo period of most low rate interest credit cards are between 6 to 12 months.

So when is it best to get your own low rate interest credit cards? Consider the following factors to consider when getting this type of card:

One: It is advisable to get one if you are planning to transfer balance from a high interest card or if you want to purchase important items in the near future. Paying off the balance in full before the promo period ends is the best way to maximize its reduced interest rates,

Two: Make it a habit to read and understand the terms and conditions in order to determine all the fees and charges that will apply on low interest rate credit cards you are interested in. You will be charged with higher interest rates once you use it to make cash advances, transfer balance or if you exceeded the allocated credit limit. If you are type who is likely to incur these types of chargers then the best option for you may not be low rate interest credit cards but regular ones.

Three: Again, review the terms and condition and find out if your card participates in universal default. If it is indeed, participating on this type of clause then it is best to look for another card instead. Universal default clause means that higher interest rates will apply once you make late payments.

Four: Find out if the card allows grace periods wherein certain length of time is given to cardholders to pay their balance without accumulating interest. The length of time will vary but average is 22 days. Note that not all companies offer this, which is why it is imperative to settle for one that implement grace periods.

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