Many credit card banks have low-rate and interest-free credit cards and with American with an average of $20,000 on their credit cards, it's no wonder consumers want to switch to the banks with low-rate charge cards.
If you have accumulated a large balance on your charge card you may want to transfer your balance to one of these low rate charge cards. However, make sure you fully understand what is being offered - some of these low interest-rate credit cards come with strings attached.
Many USA banks - including Bank of America, Chase, CitiBank and Wells Fargo - are offering Low rate credit cards or 0% interest credit cards.
Usually the zero interest rate credit card is offered to good credit scores and may revert back to a standard low-rate card of around 9%. Such credit cards may provide you with some debt relief for a short period of time, but you need to ensure you understand all the conditions that are attached to these low rate cards.
The same applies with low-rate cards. If the low rate card is only offered for six months, ensure you know what rate you will be paying after this period is over. It may end up being more than you are paying with your current credit card.
If you are interested in transferring to a low-rate charge card or interest-free credit card, or any credit card, this information may be of some help:
Find out what the revert rate is. This is the rate of interest charged when the low-rate or the interest-free period ends. Find out what the purchase rate is - this is the rate of interest charged for additional purchases. Understand how the repayments are calculated. In some cases the repayments are applied to the balance transfer first. Find out what the fees are. By the time you take these into account you may find you are not getting a better deal. Make more than the minimum repayments so you will eventually pay off your debt. After you transfer your credit card balance to a new low-rate card, cancel the old card so you aren't tempted to build up debt on it again.
If you are in debt and are only transferring your balance onto another card to provide some short-term relief, you need to seriously look at getting some free credit counseling at our firm.
Our affiliate is a resource where consumers can search, compare and apply for the best credit card offers online.
Once you have found the card that is best for you, you can fill out an online credit card application and in some cases even get a credit decision within 60 seconds.
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