Low rate cards are being loved by the consumers everywhere. These cards are making consumers more confident and powerful. They can improve their buying power while making them save much more money. Let’s have a quick look at the most prominent benefits of using these cards.
- Save on money:
Doing purchases through low interest rates credit cards is the most beneficial thing that anyone can enjoy while keeping credit cards. There is not anyone that does not carry balance on credit card these days. When this is the case, then interest rate associated with your card is something that carries a lot of value. Only low rate cards can help you save money when you do any type of purchase through it. for example, you are going to buy a television that costs $12k and you are planning to pay through your credit card that has 24% APR, then you will be supposed to be $576 as interest money that will be paid over a period of 2 years. On contrary, if you will make the same purchase through another credit card having an APR of 11%, then you will only pay $264 as interest amount over the same period of time. it means that you can save $312 in this way. This is how low rate cards help consumers save money.
- Brings down minimum payment:
Low rate cards like Capital One do not only help in saving in the long run but also helps you freeing up some cash on monthly basis. With low interest rates, then monthly payments will also remain less. Minimum payment is something that consist of a percentage that you owe to your bank. The less interest you owe the least will be the overall amount to be owed on your credit card. It certainly means that every month you will have some extra money that you could spend somewhere else.
- Debt can be paid easily:
Low rate cards help you get rid of your debt faster and easier. As it has already been discussed that credit cards can be effectively used to transfer balances. When you will pay off your debt by transferring cash from low rate cards, then the actual amount of the debt will be paid off much faster.
It definitely confirms now that only low rate cards should be used as they are useful in several ways.