Low Interest Rate Credit Cards – Looking Beyond The Headlines!

By Author: John Matthew
Total Articles: 426
Comment this article

Low interest rate credit cards are often the "headline grabbers" on credit card sites but it's always best to take a deeper look at what the card is offering to see whether it's really going to suit you – as that's what credit card hunting is all about.

You might find, for example, a great introductory offer of 2% APR and 2% balance transfer rate for 6 months which makes your eyes light up. Only 2% interest! Wow!

The question you should be asking is what happens to the rate afterwards – this may only be detailed in the small print of some low interest credit cards, but it's absolutely key. Often the introductory balance transfer rate will shoot up to over 20% and become the cash advance rate and the APR will go up to 18 or 20% too.

If you are looking for a card that you can use long-tern then choosing one that offers a decent rate and other good features that suit your spending and repayment habits is a more sensible way to go than diving in for the great introductory offers that can get you in trouble down the line.

There's no absolute guarantee with variable rate APRs that it will stay a low ...
... rate but generally speaking credit card issuers won’t change their rates drastically unless market conditions change drastically or they would soon develop a bad reputation in what is a competitive industry.

In Australia at present (July 2011) a rate of 13% or below is considered fairly low and if can find low interest credit cards offering this sort of rate, along with a low-ish annual fee and a good interest-free period then you are not doing too badly.

Don’t forget that if you manage your finances tightly and can pay off your full balance every month within the interest-free period then the interest rate doesn’t matter – you won't pay any! High or low interest rate credit cards are the same if you can do this every single month!

Other features will, no doubt, affect your decision – especially if you are looking to transfer a balance over, withdraw cash on your credit card, use your card overseas or you are looking for some specific rewards, but generally speaking picking a few features and making sure they fit the bill is the most sensible way to narrow down your credit card choices.

For more information regarding low interest rate credit cards, business credit cards and credit card deals, please visit: www.lowerbills.com.au