Credit Card Reward Program

Credit card companies are able to make money off of their cardholders by charging them interest, and many credit card companies really like to go overboard with their interest payments. Interest is calculated by the balance on the credit card, so the higher the balance the higher the interest charge will be each month. The best way to avoid paying high interest rates is to only apply for low interest rate credit cards, so you will only have to pay a small sum for the money you borrow from a credit card company.

Many credit card companies get applicants to sign up for their cards by offering 0% APR for an introductory period, usually lasting for the first 6 months. Although paying nothing for money you borrow from a credit card company seems like a dream come true, the card holder is usually slammed with an extremely high interest rate once the introductory period ends. Although many may not be able to avoid high interest rates due to a low credit score, having to pay over 20% APR makes borrowing money not even worth it.

Instead of applying for credit cards with introductory offers, the best way to go is to find a card that has a fixed APR that is at a low rate. Good to excellent credit is usually required in order to get approved for a low APR credit card, but there are some cards available for those with credit that may need some improvement. Blue from American Express is one of the best low interest credit cards currently on the market, and it offers an even lower interest rate for balance transfers.

Another thing to look out for is credit cards with variable interest rates, since they can skyrocket even if you are only one day late on your monthly payment. One example is the Capital One No Hassle Miles Rewards, which has a variable interest rate that starts at over 13%. Although it does offer great rewards and benefits for the cardholders, one missed payment can cause the APR to rise to over 22%. This will not only make you pay excessive amounts of money for the money you borrow from your credit card company, but will also cause your minimum monthly payment to increase.

There are many great credit low interest rate credit cards out there, but you have to make sure and watch out for those who are only in it for your money. By avoiding cards that offer introductory periods for low interest rates and those with a variable APR, you can find a great credit card with a low interest rate. Because the interest rate determines how much you will end up paying for the money you borrow, you will want to make sure and keep the balance on your card low and pay it off as soon as possible. By doing so, you can avoid high interest fees and truly take advantage of the benefits that credit cards have to offer.

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