Low Interest Credit Cards: Are They For Real?
Credit cards are very common nowadays. In fact, some surveys
show that 81% of the American households have at least one
credit card.
However, most financial experts contend that these facts are not
on its positive aspect. This is because most of the people who
belong on this percentage have more than $8,000 credit card debt.
In reality, that is really a big amount. But one might wonder on
how these people were able to accumulate such big debts.
Experts say the trend of credit cards today is very addicting.
There are those who assert that it is the consumer's lifestyle
that must be blamed. While others say, the problems are based on
the interest rates.
According to the consumer credit website, the average interest
rate of one credit card is nearly 18.9%. It is pretty obvious
that the amount is not at all fair. Getting to pay some debts
with almost 20% of additional charges brought about by the
interest rates would really lead the consumers to bigger debts.
Interest rates are usually charged by the credit card company
once the user had accumulated some balances on his or her due
payments. The problem is that most people tend to pay their
minimum balance only. In fact, 48% of the credit card users were
known to pay their minimum balances only.
What happens next is that the remaining balance is carried off
to the next monthly billing statement, which, in turn, would
only aggravate the situation. Pile after pile, the debt becomes
bigger, but certainly not brighter for the user's financial
future.
This is where low interest credit cards take its fair share in
the limelight. With the alarming condition in the credit card
industry, more and more people are trying to look for the best
credit cards with low interest rates.
In reality, it is not so hard to find low interest credit cards.
The problem is that not all credit card companies that offer low
interest rates are created equal. This goes to show that there
are some companies that only use this very motivating factor so
as to amass more consumers.
Hence, there are many instances wherein people are attracted to
get credit cards because of the so-called low interest rates,
only to find out that the interest rates are just one of those
fraudulent promotions known as "teaser rates."
With these low interest credit cards, they would usually offer
some tempting deals to the public. The credit card companies
would be more than willing to provide lower interest rates like
low introductory APR or annual percentage rate.
However, most experts contend that lower interest credit cards
only motivate people to make more purchases. They have this
common notion that it is just okay to make many purchases
because the interest rates are just small.
So for those who fall many times to this kind of situation, it
is best that they analyze their standing first. Never grab a low
interest credit card instantly because what goes with the
promotion may not be long lasting.
And so, here is a list of some tips that can be used in
analyzing and interpreting some facts about low interest rates
in credit cards.
1. The promotion is very limited
In reality, low interest credit cards are especially built to
make shopping easier, more fun, and extremely economical. That
is why according to some surveys, most of the advantages of low
interest credit cards are absolutely dependent on the duration
of the promo.
For instance, a particular credit card may have low interest
rates because of its low introductory annual percentage rates.
The problem sinks in if the person failed to understand that
this promo is only limited within the introductory period.