Credit cards have become a necessity these days and no longer are they treated as a luxury. They allow you to make payments without carrying cash in your wallet besides giving you time to make a repayment. Because of their convenience and comfort, many people keep not just one but several credit cards with them. If you use the facility provided by credit cards in a prudent manner, they can be invaluable for you. However, not everyone is eligible for a low interest credit card.
Save money that you pay as interest
Banks issue credit cards as a facility for people but mean to do business. They are interested in making money by issuing credit cards. The money you pay to the vendor is borrowed by the credit card company and you pay interest over the balance you run in your credit card. Low interest credit cards are issued by banks to people with a good credit history as they are perceived as trustworthy by them. For people who repay the money on time, APR of a credit card is no big deal but for those who forget to repay on time, it is highly desirable to have a credit card with as low as possible APR.
Avail 0% interest rates
Credit card war has become intense these days with banks vying for the largest share of the pie. To lure more and more customers to their fold, they are announcing new credit cards with attractive features. There are many credit cards that promise no interest for a time period that usually ranges from 6 months to a year. Such a card is referred to as 0 interest credit card and it has become very popular among the people.
No interest credit card is a promotional gimmick used by credit card companies as it promises to charge no interest on balances in the credit card for a specific time period that is an inaugural offer. But to those who are habitually late in making payments on purchases made using their credit cards, this is a great feature that saves their money that otherwise goes to serve the interest charged by the company.
Make a comparison before applying
Most credit card companies have different credit cards that cater to the requirements of different groups of customers. But one feature that is liked by most customers is low APR. If you are interested in lowest rate on credit card, it is better to do your homework by comparing credit cards with low interest rates on internet. Beware of fine print as some companies often have hidden charges that are not disclosed at the time of issuing of these cards. There are websites devoted to comparison of credit cards issued by credit card companies to help you choose a card that not only carries lowest interest rate but also suits your lifestyle and purchasing habits.