Low Interest Credit Cards

Obviously credit card companies make their money off of interest. If you don’t already know that you should not be looking at a credit card. However most of us know that, and we know that a low interest credit card is a rare find.

That said, there are low interest credit cards out there and if you are willing to go looking you can find one that is good for you.

Currently most credit card companies charge about 18% interest on a credit card payment that is overdue. If you can find a credit card that charges less than that you are doing good. However that doesn’t really mean that you are getting a low interest rate.

So really the best way to have a low interest credit card is to make your payments right away. If you do use your credit card a lot there are some alternatives out there.

Banks generally have had a strangle hold on your credit for a long time. Thankfully we live in a market economy where if you build a better mouse trap (as the saying goes’ you can make money. Therefore some smaller agencies have made credit cards that offer a lower interest rate to try and lure customers away from the larger banks.

One of these companies is ING direct. They are a relative new comer to the credit industry and they have a formula that, so far, has worked to steal customers away from existing banks.

They have done by offering low introductory rates, that if you can manage you purchases properly you can get away with paying very little interest. They also offer no start-up fees and such. While this is not technically low interest, it can save you money in the short term

If you know that you will be making a large number of purchases in a short period of time it is often better just to get a regular bank loan from a bank. These regular loans often only charge up to 8% interest, which is a full 10% better than a credit card. This can be considered low interest.

Try can find as much information as you can from the major credit card companies. These include:

• Visa
• Master Card
• American Express

They will not offer you a better rate unless you ask, but they need your business so many times they will give it to you.