Low Interest Credit Cards

How important is getting a low interest rate? The importance of a low interest rate really depends on your payment habits. For example, if you always pay your bill in full, your credit card interest rate doesn’t matter at all, and by making a low interest credit card a priority, you are sacrificing the competitiveness of features that you could actually use, such as rewards. Still, some people who always pay their balances in full wind up in the “low interest credit card” category because they’re worried about the cost of finance charges, should they forget to pay their bills one month. The truth, however, is if that happens and you have a record of paying your balance in full, credit card companies will almost always refund any finance charges, making this a moot point.

When it comes to people who consistently revolve credit card debt, low interest rate credit cards would help, but leveraging 0% credit cards would be even better since your full monthly payment will go toward the principal instead of being wasted on finance charges. Now, a low interest card is very important if you occasionally revolve a balance because your credit card company won’t give you the benefit of the doubt and a 0% credit card will not provide the long-term solution that you need.

Which credit card company is best for low interest credit cards? The primary differences between credit card companies revolve around customer service and card terms. Customer service is important and many consumers have favorite issuers based on reputation for good customer service or past experiences. However, customer service should only be used as a tiebreaker of sorts between cards with the same terms and should not be used as the primary deciding factor in your search for low interest credit card offers. You want the card with the lowest possible rate, after all, not one that forces you to pay more for more helpful representatives.