home loan finance blog
You know when you get that offer through the post for low interest rate credit cards and you think “That’s too good to be true!” Well it could be that you are right but you might not notice it till it is costing you a lot of money.
Low interest rate credit cards normally only give out a low rate in order to capture your attention and the offer normally only lasts for around six months. After this the low interest rate credit cards become normal rate credit cards.
The secret to the low interest rate credit cards is all in the small print and how organized you are when it comes to your finances. If you are on top of your finances and you know exactly what is happening on whar date then you are more than likely in a very good position to take great advantage of low interest rate credit cards because it is a great way to purchase products and pay next to nothing in interest. BUT….You have to be organized or it can all turn bad!
Should you take advantage of low interest rate credit cards then you must read the small print in order to know when the introductory offer ends and you are back to the higher interest rate. Most last three, six or nine months. There are ways that you can keep your interest rate down and continue to get that low interest rate credit card that dropped into your mail box.
These include calling your credit card company and asking them for the lower rate that you have been offered by the new company you are thinking of transferring to, this normally kicks them into action to give you the lower rate again. You can swap from one to another and swap between two for as long as you get a good rate you can try all of these methods.
Why the beware of low interest rate credit cards? If you miss that date when it kicks into the higher interest rate then you could end up with a great deal of interest as they recoup the money that they didn’t charge you, this is why we say beware of low interest rate credit cards!