Credit Cards With Low APR - The Secrets
Low interest credit cards seem to be the answer to prayers for many people these days.
More and more people are in financial trouble and in debt over their heads and are desperately trying to get out from under.
When they see a low interest or even 0% interest card they think their troubles are over.
It can be very enticing and the credit card companies make it seem very appealing.
The truth is their troubles may just be beginning.
Before anyone applies for this type of credit card it is advisable to read the fine print.
First of all, most of the time the low interest rate is only for a short period of time, usually for the first year.
After the year has passed they may find that the interest rate increases and in many cases to a higher rate than the regular credit card they had before.
This is a way for the credit card company to recoup their losses from the low interest rate in the beginning.
Also it is important to note that if you are late or miss a payment, not only does it affect your credit rating, the credit company will charge late fees.
In addition they will erase the low or 0% rate and raise it back up to a higher level rate.
This usually goes retroactively back to the beginning of the account so in effect you are now paying the high interest rate plus the late fees tacked on.
The low rate usually applies to new purchases, not a balance transfer from another card, or cash advances.
Sometimes cash advances are at an even higher rate, plus fees.
What it boils down to is that these types of promotions are rarely a good deal for most consumers, they end up costing you more in the long run.
Keep in mind a credit company is in the business of making money.
Regardless of all the non-sense fees, as long as you're smart with your application and you know what you're getting yourself into, you should be able to find yourself a great card that works for you!
More and more people are in financial trouble and in debt over their heads and are desperately trying to get out from under.
When they see a low interest or even 0% interest card they think their troubles are over.
It can be very enticing and the credit card companies make it seem very appealing.
The truth is their troubles may just be beginning.
Before anyone applies for this type of credit card it is advisable to read the fine print.
First of all, most of the time the low interest rate is only for a short period of time, usually for the first year.
After the year has passed they may find that the interest rate increases and in many cases to a higher rate than the regular credit card they had before.
This is a way for the credit card company to recoup their losses from the low interest rate in the beginning.
Also it is important to note that if you are late or miss a payment, not only does it affect your credit rating, the credit company will charge late fees.
In addition they will erase the low or 0% rate and raise it back up to a higher level rate.
This usually goes retroactively back to the beginning of the account so in effect you are now paying the high interest rate plus the late fees tacked on.
The low rate usually applies to new purchases, not a balance transfer from another card, or cash advances.
Sometimes cash advances are at an even higher rate, plus fees.
What it boils down to is that these types of promotions are rarely a good deal for most consumers, they end up costing you more in the long run.
Keep in mind a credit company is in the business of making money.
Regardless of all the non-sense fees, as long as you're smart with your application and you know what you're getting yourself into, you should be able to find yourself a great card that works for you!
