Most banks tend to offer up the option of receiving a credit card from their institution. This offer comes along with many eye catching benefits to attract more individuals to this possibility, one of them being a low interest credit cards option. To survive in this cut throat economy, banks propose added benefits to those who transfer their current outstanding balance on their credit card to their bank. Using these marketing techniques to survive in this highly competitive competition, they choose to use a great deal of attractive and highly appealing terms to attract interested individuals.
How Banks Survive with Low Interest
Most offers like this from banks and other financial institutions come with a long list of terms and conditions. It is important that you take time to read through all of the conditions of your choice of credit cards before you actually apply for the service.
Most offers such as this one, offers up many other options besides the actual lower interest. Most large companies offer a 0% interest scheme if you transfer your outstanding credit balance to their banking institution. What they don’t tell you how ever is that this is usually offered only for the initial 6 months. The general idea behind this is that the bank gives you a period of 6 months – interest free, so that the outstanding amount is at a standstill without the interest being added on to that. This will allow you to pay off your existing balance without it increasing.
The interest rate however would begin to increase after the 6 months are up, and if you have still not attempted to settle your outstanding amount by then, you would be receiving thumping amounts that are payable
Benefits of Using Low Interest Credit Cards Plans
The benefits of using the low interest option offered on your credit card differs if you are a person who generally pays your credit card bills on time or whether you allow the amount to be carried forward to the next month.
If you are the type of person who pays your credit card bills on time, low interest would come in handy when and if you are unable to do so. For a single time that you may not be able to settle your bill on time, you would not receive a massive bill inclusive on a high interest on your payable amount and the card can therefore be used for emergencies. If you are the kind of person who allows his or her previous balance to be brought forward each month, the low interest option would make sure that the interest added to your credit card amount is less than the usually high interest rate.
Low interest rate options also allow you to pay a minimum amount based on your credit rating. The general minimum payment is 3% of the amount payable. So if you have a fairly good credit rating your minimum payable amount would be less than if your credit score was not that impressive
Selecting low interest credit cards needs a little bit of your time and effort to ensure that you are making the right decision where your finances are concerned