You can't always pay the balance on your credit card every month because there are always unexpected things that come up in life. If you are likely to carry a balance on your credit card, getting a Low Interest Credit Card could help you. Compare and find the best Low Interest Credit Card that helps you pay off your principal balance quicker and also save on hefty interest charges.
Who should get a Low Interest Credit Card?
Can't pay your credit card balance every month? Fallen into credit card debt? If you answered yes to either of these, a low-interest card may be able to save you the money in interest charges that you need to get on the right track. Because of how quickly credit card interest compounds and accumulates, it makes it harder to pay the card off quickly. In fact, if you pay just the minimum balance on a card, it could take you years to pay off a few thousand dollars of credit. Transferring a balance to a low-interest card may give you the interest savings you need to pay off those pesky bills.
So if your credit card debt is creeping up on you or you are carrying a balance month-to-month, you might be able to benefit from a low-interest card. Another benefit of these cards is that they don't usually have any kind of rewards or points programs attached to them, but you might be wondering how this is a benefit. Many credit card experts will tell you that these rewards or points programs will actually encourage spending, and if you are already struggling with debt, this may not be good. So a low-interest card will help you focus on the numbers and get yourself debt free in less time.
Low Interest Credit Cards vs. No Annual Fee Credit Cards
There are a few factors to keep in mind when choosing a low-interest card: interest rates, the length of low-interest rate, special conditions for the low-interest rate, annual fees. Just like a regular credit card, low-interest cards will have competitive rates. Compare the different rates offered against the other benefits you will receive.
With some cards, the low interest is only for a promotion, meaning it will be temporary. So figure out how long the promotional low interest will last and decide if that fits with your financial goals. Next, you will want to make sure there aren't any sneaky "special conditions" that must be met to qualify for a low-interest balance. One example would be needing to meet a minimum dollar amount spent on a monthly basis. You would want to avoid this kind of card unless the other perks of the card will benefit you.
And lastly, you will want to check for annual fees. Most low-interest cards won't have these fees because of the type of customer they are catering too. But when it comes to your credit you want to make sure you are doing your due diligence. Sometimes getting a credit card with no annual fees would end up saving you more in the long run.
Compare Low Interest Credit Cards in Canada
Most credit cards will have average interest rates of 19.99% and up! However, a low-interest card is exactly what it sounds like: a credit card with a much lower interest rate. These cards typically have rates between 5% and 15%. A low-interest card will usually offer lower rates on other services such as balance transfers and cash advances. If these are transactions you need to make, you will know that a regular card will usually have an extra high rate for them. If that wasn't enough savings, you'll be happy knowing these cards typically do not have an annual fee, saving you another $100 or more a year.
Whether you are paying for a vacation or having an online shopping spree, the assurance of having a reasonable interest rate on your credit card will help you enjoy these things more. In addition to the peace of mind when carrying a balance, using a low-interest card for everyday purchases or when those emergency situations arise is a great way to build credit while knowing you will be paying reasonable interest rates.
Cash advances, while not generally advised, sometimes cannot be avoided. The lower fee that you will pay for cash advances with a low-interest credit card will make that decision a little bit easier and safer. A great time to use your low-interest card is when you have multiple cards. You can transfer the higher interest balances onto your low-interest card. Not only will it bring your monthly payments down to one, but you will be paying a fraction of the interest on that payment.
Whether you are looking for a rewards credit card or a low interest credit card, we help you compare and find the best credit card providers in Canada.