Are low rate credit cards challenging loans
The annual percentage rate on your credit card depends on your credit rating. This means it can be anywhere between 0% – 40% and even more, varying drastically. However, low rate credit cards, when looked at from a different perspective are actually challenging the idea that credit cards are an expensive way of borrowing money. When it comes to the value delivered to the borrower, these low rate credit cards are even challenging the personal and secured loans.
The interest rates on loans are climbing steadily, which is why the low rate credit cards are standing out as a far better option for borrowers. There are 0% APR credit cards, but after the introductory offer, the interest rate jumps quite significantly posting a significant problem. On the other hand low rate cards have a low interest rate throughout until your debt has been settled. So instead of going for a loan from a bank with high interest or a 0% APR credit card where the timer is always running, it is advisable to go for a low rate card, if you want to borrow money at a fixed low rate and then pay it off at a pace that suits your finances.
The question to be asked however is whether these low rate cards are better than the personal loans or 0% APR credit cards. Finances are always relative and therefore, it varies from individual to individual. The credit cards with low rates mostly work better than the 0% APR cards purely because the customer is not racing against time, with a big risk waiting at the end of the time period. Many 0 percent credit cards are indeed offering 0% on both balance transfers as well as purchases. However, you have to repay the debt, before the rate on your card changes and if you don’t plan it well, you might end up paying a lot more interest.
The low rate credit cards can offers benefits over the secured and personal loans too. Unlike the loans, credit cards don’t need a fixed schedule for repaying the debt. If one month, your costs are high, you can postpone repayment to the next month. All you need to do is make the minimum payment and avoid being charged or damaging your credit rating. You have to make sure though, that you know what you want from your low rate cards, because terms and conditions on the cards vary drastically.
Latest Low APR Credit Card News
Finally, there is a credit card specifically designed for Generation Z which is to meet the needs of today’s youth. Meet a new no-annual-fee credit card with rewards – the X1 Card. The offer is described as “the smartest credit card ever made.” But what is so smart about it? Let’s figure it out. The […]
The new year brought holders of the Chase Sapphire Reserve card sad news about an annual fee increase from $450 to $550. Still, this is not a cause for frustration, since the new year also means new perks! This week, Chase introduced a couple of nice benefits for holders of select credit cards, including the […]
At the beginning of September, Stripe, a San Francisco, CA technology company developing software to make and receive payments over the Internet, announced the launch of their new card for businesses. Now the Stripe Corporate Card is open to US-based companies. The Stripe Corporate Card is a Visa card issued by Celtic Bank. According to […]
This week Amazon in cooperation with Synchrony Bank came out with their new Amazon Credit Builder credit card. It is not difficult to guess that the card is aimed at people who need to build or rebuild their credit. So, what is offered to them and is it really worthwhile?
On March 25, Apple Announced their new Apple Card credit card. “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money,” said Jennifer Bailey, Apple’s vice president of Apple Pay.