0% APR credit cards can save you thousands
Low-interest credit cards are available as an alternative to credit cards with medium to very high interest rates. If you have a credit card with a high interest rate between 17% and 24% or more, you may not find that it alone costs you hundreds or even thousands of dollars in interest each year. Once you understand your balance and how it affects your debt, you will see how low interest credit cards or even a 0% APR can be a much better solution.
Gather your statements
Collect your bank statements for all high and low interest credit cards. These include Visa, MasterCard, American Express, Discover, department stores, retailers, supermarkets and other revolving accounts. For each invoice, write down the total amount, the minimum payment amount and the interest rate. You can also provide your estimated monthly payment (if it is above or below the minimum) and the monthly funding cost.
Compare cards
By comparing the numbers on each card, you can see which ones cost you the most. The higher the APR and the higher the balance, the more you end up paying long-term interest. And if you only pay small amounts of what you owe, you can pay for more than 20 years. You can now see the advantage of a low-interest credit card.
Classify your debts
Once you have determined which low interest credit cards are high and which are high, you need to rank them from highest to lowest. Then, if necessary, order them based on the estimated amount of interest you would pay all year round. In other words, if you have a high-interest, low-credit card, general interest may be lower than a low-interest, very high-credit card. This step will help you focus on the cards that help you get the most out of your hard earned money.
Negotiate with your bank
Call your current credit card company before you cut your plastic or send it through the paper cutter. Many consumers don't know it, but companies prefer to lower their interest rates instead of losing their business. Let them know that you have been offered a better deal on a low interest credit card. You can match this offer and save time and effort when closing and opening a new card.
Compare the prices of 0% APR credit cards
Some banks just don't move. You may have to dig a little to get a low interest credit card. Check online, speak to your local bank, and evaluate direct mail offers. Ask friends, family, coworkers and other acquaintances about the cards they use.
Read the fine print carefully
Many cards seem too good to be true: 0% interest on wire transfers, short lifetime, frequent flyer miles, insurance benefits, etc. Often the offers are just that. 0% offers can only be used for a limited amount or for a certain period of time. Fixed prices can increase if you miss a single payment, etc. Pay close attention to all conditions and guidelines and read the fine print. Do not accept a low-interest credit card until you are sure you understand what it is about.
Maintain good credit
You can now stop throwing money down the drain. Hold your credit card at low interest rates or 0% APR and keep your credit rating. Pay more than the minimum amount and don't be left behind. As fast as he could lower his APR, he could jump to astonishing numbers.