Low Interest Credit Cards - Do they offer the best deal?

Low interest credit cards can look very tempting as compared to the average credit card interest rates of 16%, or even 18% (APR). With a lower interest rate these cards will cost you less if you are not able to pay your credit card debts on a monthly basis. For long-term credit card debts, you will be looking for lower interest rates and these types of credit cards may offer you the best credit card rate, for your needs. You will be saving a substantial amount on your credit card debt as opposed to a standard high interest rate found on most cards.

Low interest credit cards do have one downside. This is that you won't receive any reward programmes such as frequent flyer points. Reward schemes are perks associated with credit card use. For example you can earn 1%-5% credit on every purchase you make with a higher interest rate credit card. If you use your card frequently this can add up to substantial savings and reduce your overall payment to your credit card company.

However, if you do not use your credit card for many purchases this may not be worth it. Another consideration is if you regularly make rather small purchases. This means that rewards may not be benificial to you. In this case a lower interest credit card might offer the best credit card rate for your needs.

If you make larger purchases then rewards may be the best thing for you, as the 1%-5% credits on each purchase will save you a considerable amount of money. Therefore, reducing the cost per purchase and reducing the amount of money you owe to your credit card issuer. The savings may very likely offset higher interest rates and make a lower interest rate credit card not very practical.

If you are in the habit of paying off your credit card debts monthly you may want to consider the pros and cons of low interest credit cards. What you gain with low interest, you will lose with reward benefits. If your paying your monthly credit card bill on time it's unlikely you will be paying any interest and as a result a low APR won't have much benefit for you. However, the reward programs will benefit you on every purchase.

You can make fast comparisons of low interest credit cards on line and by this means get the best credit card interest rates. There are many websites available which show the different credit cards and what they are offering you. They compare credit card features and rates side by side allowing you to make an informed decision.

Now that you are aware of the advantages and disadvantages of low interest credit cards you can make an educated decision as to whether this type of card will work for you. Review your requirements and think about your spending patterns. In this way you will be able to make the right decision on which credit card will be best for you and your needs.

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