Credit cards are great as long as they are used the right way. If you can get a credit card with low interest, you can really benefit from it. Even if you've been with the same credit card company for a long time, you might want to check out other companies to see if you can get a lower interest rate.
These days, it's not just Visa and Mastercard. Since there are so many credit card companies to choose from, there is a lot of competition. They have to offer all kinds of incentives to get people to buy from them. With so many credit card companies, you can be sure to find one with a low interest rate. What rate you get will depend on how good your credit is. But you don't know how each company will look at your rating. Even if you have a few marks on your credit, a credit card company that wants your business may still give you a better rate than you have now. You have to ask to find out.
Most people who have credit cards have a balance on them at the end of each month. If you do the same thing, you will save a lot more money with a lower interest rate. Let's say you've decided to get out of credit card debt and are paying off more of it each month so you can pay it off completely. If your interest rate is lower, you will be able to do this much faster. You might even be able to get a credit card with no interest. These kinds of offers are made to get you to move your balances from another company to the one making the offer. With that kind of interest rate, you can pay off the debt very quickly.
If you always pay off your credit card balance in full each month, you might think that a lower interest rate doesn't help you since you never pay interest. But you should always be ready for the unexpected, and if you had a problem one month and couldn't pay the whole balance, it would be better to carry that balance over at a low interest rate.
Offering very low or no interest rates is just a way to get you to open an account, so they usually only last for six or twelve months. If you use that time to pay off all of your credit card principal, you'll save a lot of money and get out of debt. Be careful, though, because after the introductory period, the rate will go up. The credit card company has to tell you when the rate is going up, but if you don't pay attention, you could end up with a card with a high interest rate again.
If you can, it's best to pay off your entire credit card balance every month so you don't have to pay any interest. Over time, you will save a lot of money on interest. If you only pay the minimum on your balance, you should know that you are making the debt last longer and paying more interest. Think about how much money you could save if you had a credit card with a low interest rate. Contact your credit card company if you have any questions about your rate or how interest is calculated. This call could prevent future problems.
