At the beginning of the article, we will come across why credit card of low-interest rates prevails over other alternative loans keeping note of your financial situation and convenience in mind. At the end of the article, we will go through the advantages of Credit Cards with Low-Interest Rates.
No single answer to a particular question. While credit card might be the right choice in one situation, for another personal loan might be suitable. Here’re some questions to ask to help decide which credit product might best meet your needs:
- Are you consolidating debt? It’s important to consider options carefully. How much debt do you poses and does it include loans and credit card accounts? Make sure you will be able to bring your accounts to consolidate.
- How much you’re going to borrow? Credit card limits vary, as do personal loan limits. You may be capable to a high credit limit with the credit card but you will have to meet eligibility criteria.
- How do you supervise your repayments? As mentioned above, credit cards are an ongoing credit, while personal loans have end-date. If either credit card or personal loan will work for needs, you may want to judge how disciplined you are with repayments. If you think you may be tempted with credit line sitting there, then a more planned repayment schedule, such as that offered by a personal loan, may be worth considering.
- Your financial situation. If you have control over your spending and you follow your budget, then the credit card is suitable also help you earn money through cash back and rewards. On another hand, a personal loan offers structure some people need to repay debt timely.
- Convenience: If you do not like to carry large amounts of cash with you. If you lose it, it’s vanished. If it’s stolen, it’s gone. Credit cards are convenient, small and carry healthier consumer protections. It also convenient to buy things online. Another convenience is travel. Some credit cards do not even charge the foreign transaction fee.
Advantages Of Credit Cards With Low-Interest Rates
There is no denying the fact that having a credit card with low-interest rates Is beneficial. Let us look at some of the benefits:
- Come with a lower annual percentage rate: Low-Interest cards come with a low annual percentage rate. It enables, those having credit cards with low interest to continue availing lower interest rates even after the introductory period.
- Helpful in paying current credit card debt: With aid of low-interest credit cards one can pay off accumulated credit card debt. It can be done by individuals without paying any extra interest.
- Savings on interest – Since the credit card carries a low-interest rate, if the cardholder chooses to use the rollover credit facility, then interest incurred on a bill will become much lesser. Lest the individual is unable to pay the entire credit card bill in one month, the interest charged on balance will not be excessive.
