Credit cards with 0% discount and interest-free credit cards
Credit cards with a low interest rate (or 0%) can save you hundreds of dollars on balance transfers and for regular purchases transferred to your credit card balance. Or you may simply want a favorable interest rate in recognition of your good credit history and responsible debt management. Whatever your goals or motivation, 0% or low interest credit cards can help you maintain the lowest rates available to people with excellent to good credit.
Keep in mind that there are two main categories of low interest rate credit cards, namely those that offer a variable APR and those that offer a fixed APR. As with a variable or fixed rate mortgage, the APR with a fixed rate will remain relatively stable over the life of the loan. If your card company decides to upgrade your card (which is quite rare), they will first notify you of the change as required by federal law. With a variable rate, your APR is tied to the prevailing rate, such as the prime interest rate. If the prime rate increases, your APR will likely rise similarly.
Generally speaking, credit card companies and banks extend offers for 6 or 21 months – within an APR range of 0% to 3.99%. This can result in a significant discount if the normal APR averages around 15% or higher. After the introductory promotional period, the APR on a low-interest or no-interest credit card may revert to the regular interest rate. Of course, the ideal balance is credit card which offers an excellent short-term rate followed by an attractive, competitive low interest rate over the long term.
The interest rate charged on your credit card is widely considered to be the most important component of your card. This is because it determines the underlying cost to you of borrowing or rolling over balances and paying them off over time, rather than all at once or within the same month in which you make purchases. That's why getting a credit card with a 0% or low interest rate can be a huge financial boon, no matter what your credit card usage patterns or money management strategies are.
