Have you ever stumbled upon emails from Credit card companies that talk about loans to pay off credit card debts? Surely, you have. These are mostly advertised in the form of low introductory rate Credit cards and mostly targeted at people with credit card debts or who are trying to fix bad credits. You may be asked to complete simple forms to apply for the credit card and use it to clear your higher rate credit card debts, loans and other bills.
Sounds interesting, doesn’t it?
As appealing it may sound, you must be careful while applying for these credit cards. The term ‘introductory’ is the key. The low interest rates would last for a certain period and after that you will have to pay off the debts at the regular high rate. So banks and lending institutions would be hoping for you to continue using the card even after the introductory phase is over, and if possible have outstanding dues to be cleared.
The Process of Low interest credit card consolidation
The real question that now lies is whether these offers are worth your attention or they deserve the junk pile as most people relegate them to. Scott Biker, who is the founder of DebtSmart.com and has authored ‘Talk Your Way Out of Credit Card Debt’ feels it is a mistake to not take these temporary low interest credit cards seriously.
One very important task that you can perform with these introductory low rate credit cards is, as already mentioned before, using it to transfer balances. People generally don’t care much about that but consider this; if you save $1000 by spending 10 hours of your time over a year transferring balances, that means you save $100 an hour for your efforts. Isn’t that worth it?
Curtis Arnold, who is the founder and Public Relations Director of CardRatings.com feels that it makes sense for people to try and take advantage of the low interest rates offered by these cards and use that to improve the ratings on other accounts. Balancing of transfers from one credit card to another ultimately results in saving a significant amount of money in interests alone. You can also use these cards to make purchases the interest on which is going to be minimal.
Low Interest Credit Card Offers
There are various low introductory rate credit cards that are available on market that charges 0% interest for one year. The Citi® Platinum Select® MasterCard® is one such credit card. It offers 0% APR on balance transfers and purchases for up to 12 months with no annual fee. After that, the regular interest could go as low as 11.99%.Some cards instead of offering the low interest rate for a specific period offers it over a number of billing cycles. Likewise, The Bank of America® Accelerated Rewards® American Express® Card gives 0% APR for 7 or 10 billing cycles. After that, it charges regular APR of 12.99% to 20.99%. You will need to perform a simple online search to find the best one that suits your interests.