Loan and Equity Help

Fixed interest rate credit cards are nice to have. These types of credit cards are perfect for anybody. If you tend to carry a balance on your credit card from month to month this is a great option for you. It gives you the opportunity to get ahead and pay down the balance on your card without paying a lot of interest. Getting approved on such a credit card is not easy. A low rate credit card is usually for those who have good credit and a history of making payments on time. Most people who get approved already pay their entire bill every month. Many people only have them to get the rewards. If you have bad credit then you need to work on you’re credit report so you can get approved. If you have been able to get accepted for this type of card, some banks will offer you rates as low as 2%. Think about your interest going from 21% to 9% and how much faster you could pay down your debts. The banks will have stipulations in the agreement that you pay your bill on time or you risk losing the low rate.

A rule of thumb when selecting a card is to go with a fixed interest rate than that of a variable rate. Some will have annual fees but most do not. If you plan to transfer a balance there might be a fee involved and it should be considered as interest because you are paying something. If you can pay your balance off every month, go ahead and do it. There is no reason to be giving your money away to big banks. If you can’t pay in full for the item think about if you really need it.

For every dollar you put on top of the minimum payment it goes straight towards the balance. Putting extra money on top of the minimum payment can save a ton of interest. Be smart with the card and follow the guidelines issued by the company. Late payments and keeping your balance over 50% of your limit are factors which could break the rules imposed on you. It is a smart financial play to have a low rate card in your wallet or purse. Some of them do not have the best rewards programs but its nice to not pay a lot of interest.