Drop the interest rate if you get charged interest on your balance by getting a low interest rate credit card instead.
A low interest rate credit card can be considered as having a purchase rate that’s less than 15% p.a versus the standard purchase rate of 20% p.a. Purchase rate is the interest rate set for goods and services purchased on a credit card.
Are you someone who carries over their credit card balance each month? If the answer is yes, then you're likely paying interest charges on the spending balance carried over every month. Which means a low interest credit card is a good fit for you and could potentially save you paying hundreds or even thousands of dollars in interest charges over the years.
Are you determined to pay the balance on your credit card down to zero? If so, then a low interest rate or balance transfer offer can be two great picks for you. Getting charged less interest leaves you with more money in your pocket or for paying down the balance.
A good time to use a low interest rate credit card is when you need to make an urgent or immediate purchase but don’t have enough savings to pay for it. So instead you can make a purchase now then repay it back in installments. But do not make this buy now and pay later thing a habit, especially when it comes to making large transactions.
Some of the lowest interest credit cards in the market are around 8% per annum and occasionally the credit card providers promote 0% purchase interest rate offers. Another option are balance transfer offers which can start at 0% interest p.a. and sometimes last for 26 months or more. When comparing or applying for a low interest credit card do ensure you check the annual fee amount.
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