Low Interest Credit Card is a credit card which charges lower rate of interest in comparison to the other credit cards from its customers. Interest rates are generally charged from the credit card customers when the outstanding debt is not paid within the grace period.
Credit card is a card which helps a person to purchase something without having to immediately pay for it . First of all, the credit card issuing company makes the payment on behalf of the customer. In turn the customer remains liable to pay the outstanding amount to the company within a definite period of time, known as Grace Period. In case a customer is unable to pay the outstanding amount (in full or partial) within the Grace Period, the credit card issuing company charges a monthly interest rate on the outstanding amount from the card-holder.
Low interest credit card is generally accessed by those who are uncertain about paying their outstanding money in time. In such continuous non-payments the interest rate usually accumulates and the total amount due becomes large. Thus in such cases the interest rates need to be low so that the interest rate accumulation is controlled to a certain limit. Low interest credit card saves a lot of money for paying off the principal outstanding debt.
Many-a-times, annual fees are attached with these type of credit cards and generally cancel out all the savings accrued through the low rate of interest. Thus it comes out to be only a gimmick for such cases.
Low interest credit cards are mainly of two types :-
Low introductory APR (generally 0%) and
Low rate fixed APR
These offers are judged by the customers while judging and choosing the best credit card.
A person must look into the terms and conditions of a low interest credit card before accepting it because many times it has been seen that after offering the low or 0% for a short period of time this rate shoots up to a large figure. This might put a person in an awkward position.
Hence it can be concluded that low interest rates are a good incentive factor provided by the credit card companies to the customers but the customers should remain careful in choosing the low interest credit cards.
For more informations on low interest credit card one may browse through creditcards.com and cardfusion.com.