The Benefit Of Using Low Interest And Balance Transfer Credit Cards

creditcardbalancetransferIf you are a person who seems to have too many credit cards of if you are looking for a new one, then you should look at the possibility of getting low interest and balance transfer credit cards. There are many benefits associated with these types of cards, but mainly you should look at them because they are the ones that will save you the most money. The cards that are offered with these benefits are usually from established financial institutions that value their customers so while money is a good incentive you will also experience the benefits from the more experienced companies. These are the benefits of low interest and balance transfer cards and what you can expect from them.

Saving Money On Interests

The interest rate that you are given when you apply for a credit card has the potential to cost you a lot of money or save you a lot of money. Obviously you will want to go with the lower interest credit card. Finance charges will be reduced when your interests are lower; the best example would be someone who is at an 11.9% interest rate who makes a purchase of $500. At that point your finance charges would be $4.95; but if you were to double the amount of the purchase, the finance charge would go to $9.92. The higher the interest rate that you get, the more you will pay. Unfortunately some cards get away with charging you well over 20% interest rate which can quickly make your monthly finances get out of hand.

Payments Are Quicker

Because you will have a smaller amount to pay with lower interest cards you will be able to afford higher payments which will get you out of debt faster. Even if you are just paying the minimum allowed by the credit card company you will still be able to pay it faster because the interest rates will not increase the amount you owe every month. That is one of the reasons people put a lot of value on offers that some credit card companies will give you that include a 0% interest rate for a short amount of time. If you get to save the interest rates for a full year, that can translate into fewer months of more affordable payments.

Lower Minimum Payments

The ability to have lower minimum payments is also very valued and it is something that you can get with some low interest rates credit cards. That is not to say that you should always stick to making just the minimum payment. You would in fact be better off making the payments faster, but you never know when an emergency will take place and to have the ability to keep up with the payments by making smaller minimum ones can be the difference between having a good credit score and having a great one. If your credit card company calculates the minimum monthly payment by adding the total owed plus the finance charge then you would be able to see a lower payment each month.

Save With Balance Transfers

Sometimes you will sign up for a credit card that offers a low interest rate, but that rate gets increased after a few months. By getting a balance transfer credit card, you will be able to take advantage of lower interest rates with other companies. If you have a card that has a total interest rate of 10% but yours currently charges you18% then you would be saving on the difference of the interest rate plus the added finance charges. Most of the time, you will not have to pay for balance transfers which increases your savings and allows you to keep up with the payments. By using a balance transfer strategy you could keep up with all of your payments and display the perfect credit history that you deserve. Keeping up with your payments is very important and both the low interest credit cards and balance transfer cards will allow you to do just that.

This guest post was submitted by Chantelle a guest post writer who enjoys sharing websites that can save you money. She enjoys giving readers a heads up about sites like Infochoice credit cards which have helped her in the past.