Low interest rates on a credit card is something we all want! The ability for you to save interest, increases with each drop in your credit card interest rate.
Reality is, is a low interest credit card worth it? Why wouldnt you jump at one? You might have heard that they can cost you alot more long term? I'll show you a little more about them, that you might have never known.
I was recently employed in one of Australia's top banks credit division, and have worked in personal finance for more than 8 years. My tricks and secrets, wil save your hard earned cash! It certainly has for my mates and for my family and me.
Some creditcard banks will get your business by signing you upto a card by offering 'sweet' deals with periods of low interest or even 0% interest. As an example, you might have seen the zero percent deals for say, 12 months, that often target low income earners.
Why would they do this? Well, card providers earn the least in interest in the first year you have your card, because they know from years of statistics that card holders spend less in the first 12 months...
After a year goes by, credit card users are 90% more likely to rack up debts and spend more, much to the happiness of card providers...
Ideally, this is not the best situation for you, because after the low rate period is up, you might be tied down to a bigger than normal rate!
Another annoying thing is, if you go over the credit limit with the zero% cards, most banks will charge you penalty interest as high as 30% as well as high or very high penalty fees. I can tell you which ones are the worst too!
While this is not the only thing to be wary of, as your bank or card providers know much more than you might think, about your spending and borrowing habits...particularly when you bank with your card provider! Above is only a sample of my favourite credit card saving info, for my best secrets and tips, you need to visit my full article here -> low interest credit cards.
