Is a Low Interest Credit Card Really the Best?

A low interest credit card seems to be a good thing for cardholders. Cardholders want lower interest rates on the cards so that they won't have to pay as much. Normally cardholders have to pay two percent of the balance monthly. Paying bills on time is a way to qualify for a low interest credit card. If the account is in good standing and up-to-date, cardholders should ask credit card companies to lower the rate. Consumers can call the number on the back of the card and ask what they qualify for. The company will deny the request if the customer has a history of late payments.

However a low interest credit card may not ensure lower monthly payments. A credit card company fixes the monthly minimum payment so that the customer consistently pays interest only. The company will charge the most interest for the duration of the loan. The best the customer can do is to pay as much as possible every month on the debt. Still lower interest rates allow more of the payments to go to the principal sum.

Along with the low interest credit card, there are zero interest credit cards. Yet the potential cardholder should read the fine print because the low interest may be temporary such as several months. It can be replaced by higher rates very soon. Certain states may not be held by law in the interest they can charge. Being late for one payment may mean a higher rate even during the low interest time.

An example of a low interest credit card would be

No-Annual-Fee Discover® Platinum Card with all of these privileges:
0% Intro APR*, No Annual Fee, Up to 2% Cashback Bonus® award*, 100% Fraud Protection, Up to $50,000 Credit Limit, and Online Account access and bill payment.