Suppose you are in deep debt. You just got an offer in your inbox for a new credit card with lower interest rate as compared to all your previous credit cards. That would be a happy moment for you. Isn’t it? Often interest charges make debt pile up too fast and no doubt you won’t be able to ignore this credit card offer at any cost.
Before you take up this credit card company and its offer, there are few things which you need to know about low interest credit cards well in advance. Always keep in mind they are not created equal. There are many people who believe that the phrase “low interest” can mean something they need to pay less. But this is not at all true.
Before you make any financial decision on any credit card it is advisable to you to read the fine prints carefully. There are many companies in Australia which will try to lure you with their low interest rate offers but keep in mind that these rates don’t last forever.
If you have ever read the terms and condition of any credit cards carefully you ll notice that the lower interest rate is an offer only up to the introductory period. These offers are lasted not more than three months, and up to the maximum of six months.
If you need to make high purchases or maybe you need to transfer your debt from high interest rate credit card, then opting for a low interest credit card would be a wise decision. To take an advantage of reduced rates, try to pay off these balances in full even before the introductory period ends.
Keep a track on the charges that the low interest rate applies to. There might be a case where you are paying suppose 9% interest on your purchases, but the cash advances increases the rate up to 20% or maybe more than this. If you think you incur these type of charges very often then opting for an average interest card will be a better option.
Keep a track on the policy of universal default while going through the terms and condition page. Keep in mind that if the company participates in universal default scheme then whenever you are late on payments they have rights to increase your interest rate. So it is always recommended to avoid the credit card companies who participate in universal default schemes.
Also, to keep in mind is the card’s grace period. Grace period is nothing but a time between you making your purchases and having that purchase start to accrue interest. The average length of grace period is fixed up to 22 days.
Sometimes there are things which sound attractive but still it is advisable to get in to full details of it and then only finalize any offer. Low interest credit cards are always a great offer but all you need to determine is that is it real or fake.
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