If you still owe money on your credit card, you're not the only one. Almost 70% of Americans carry a balance from one month to the next on at least one of their credit cards. Many of these cards have sky-high interest rates that add up to a lot of money spent on interest. You can save hundreds of dollars in interest if you switch to a credit card with a low interest rate. Low-interest credit cards help you get back on track and still enjoy the benefits of having a credit card by giving you great introductory deals.
First-time Offers
Credit card companies are always giving people reasons to sign up for their cards. This usually starts with an interest rate of 0%. This 0% APR feature is found on a lot of credit cards with low interest rates. It lets you start saving before the low interest rate goes into effect.
You can use the time when you don't have to pay interest. You can buy things and pay for them over a few months, and there is no extra charge for this. If you have a balance on another credit card, you can move it to the one you just got. Then, pay off the debt while the interest rate is 0%. But before you do that, make sure that the fee for transferring a balance is fair.
Save a lot of money
Even after the introductory period is over, you can still save money with a credit card with a low interest rate. Think about the difference between a credit card with a 9% interest rate and one with a 20% interest rate. If your rate is 9% and you have a $2,000 balance for a whole year, you will pay $180 in interest. With a rate of 20%, the cost of interest goes up to $400. This makes a difference of $220, which is a lot of money. Putting this amount toward the principal balance will help you pay off the debt much faster.
Fees should be checked.
If you want a credit card with a low interest rate, you will want to compare the different offers. In addition to the interest rate, you should also look at the fees that come with the card. Some low-interest credit cards have fees for balance transfers, annual fees, and other costs. If the interest rate is low but other fees are high, you may not save as much as you thought. Because of this, you should compare the interest rates and other costs.
Set up a way to pay.
Even if your credit card has a low interest rate, you should still make a plan to pay off your balance. One easy way to do this is to find out how much the monthly minimum payment is, double it, and put the extra money toward the principal balance. If the next month's payment is less, keep paying the amount you chose at first. This lets you pay down the balance in a structured and organised way.
If you often carry a balance on your credit card, you should look for one with a low interest rate. Over time, they can help you save a lot of money on interest payments. Look at your options online, and then fill out an application right away. You can start saving money as soon as you get a credit card with a low interest rate.
