Benefits Of Low Introductory Rates

Benefits Of Low Introductory Rates



Benefits of​ Low Introductory Rates
if​ you​ watch television​ or​ surf the net, it​ is​ likely that you​ have seen one of​ the many adverts for​ low introductory credit card rates .​
These low rates hope to​ entice you​ into getting one of​ these credit cards, and​ with such great rates on​ offer it​ is​ not surprising that many people look into them .​
Although these offers can have hidden dangers and​ charges, there are benefits to​ low introductory rates .​
if​ you​ want to​ know more about how to​ use the benefits of​ low introductory offers without the dangers then here is​ some information​ that can help.
Low APR offers
One of​ the most common​ introductory offers is​ to​ have a​ low APR on​ the credit card for​ a​ certain​ period .​
These low APRs can vary from around 5% all the way down to​ 0%, and​ can last from 3 months to​ a​ year .​
The benefit of​ having a​ low APR is​ that you​ will pay less interest on​ the credit that you​ use .​
if​ you​ can get a​ 0% APR offer then you​ are effectively getting your​ credit for​ free during the introductory period.
Using low APR offers
Low APR offers often come with hidden charges, such as​ high balance transfer fees or​ a​ much higher typical APR after the introductory period expires .​
if​ you​ want to​ get a​ low introductory APR rate, look at​ the list of​ other charges, as​ well as​ how much the APR will be after the introductory period has finished .​
The best way to​ use a​ low introductory rate is​ to​ spend on​ the credit when you​ have the low rate and​ then pay it​ back before the rate is​ finished .​
That way you​ can make a​ large purchase over a​ few months without having to​ pay any interest on​ it.
0% balance transfer rates
Another typical introductory rate is​ to​ offer 0% on​ balance transfers for​ a​ period of​ time .​
if​ this​ is​ coupled with a​ low APR, then you​ can use this​ card to​ transfer any existing debts you​ have in​ order to​ pay them off quickly .​
of​ course, these cards also have hidden charges like fixed fees for​ balance transfers as​ well as​ high rates after the initial period .​
Use 0% balance transfer rates to​ help you​ to​ pay off debts more quickly.
Keeping that low rate
Although you​ might be offered a​ low rate for​ around 6 months or​ a​ year, this​ is​ dependent on​ you​ using the card properly .​
if​ you​ pay late or​ go over your​ credit limit, you​ could find your​ introductory rate is​ taken away and​ you​ are put onto the much higher regular rate .​
if​ you​ are getting a​ card simply for​ the low initial rate, make sure you​ pay on​ time; otherwise you​ could end up paying a​ lot more for​ your​ credit.
Switching cards
There are many people who use introductory rates to​ their advantage by continually switching from one card to​ another in​ order to​ keep their payments low .​
this​ can work well if​ you​ maintain​ your​ payments and​ spend wisely .​
However, switching cards can be a​ hassle, and​ it​ can reflect badly on​ your​ credit report if​ you​ are continually switching accounts .​
Try and​ keep some long-term accounts going, or​ find a​ card that has a​ good rate after the initial introductory period .​
However, if​ use low introductory offers correctly, you​ can save yourself a​ lot of​ money on​ credit card interest and​ bills.




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