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Low rate credit cards and their benefits

Low rate credit cards and their benefits:

There are many advantages to the different types of credit card. Depending on your situation, you might benefit from switching cards frequently and availing of the best offers, or perhaps having multiple cards. An alternative to doing so would be to target a single card that has some of the benefits of other cards while offering a low rate. These are known as low rate credit cards and they have several advantages.

Advantages of low-rate credit cards

The first major advantage with these cards is there simplicity. While managing credit cards may not seem like much of a hassle, consider that you will have to spend time and effort researching different options if you switch providers and offerings regularly. And when making transactions its usually easier to just have to think about the one card instead of having to make a decision about the appropriate card for each purchase,

There is also a security consideration – one card is easier to keep an eye on and keep secure. It means less chances for your finances to be compromised and makes the process of checking your credit file easier (to make sure no one has taken out any debts in your name). It also means less cards that can be lost or stolen.

While applying for new cards is a straightforward process these days, there is always a risk that you will be turned down which is always present if you switch from card to card regularly. Lots of applications can harm your credit score also. If you have somewhat complex plans for management of debt and transferring it from one card to the next, this leaves a lot of things that can go wrong which could leave you stuck with a high interest rate. There is also always the chance that you will not be offered the advertised APR, and when managing debt it is always best to have as few uncertainties as possible.

This is another benefit of low-rate cards, there is no risk that the interest rate on outstanding amounts will rise after an initial low-interest period. This aspect of other cards can be a problem, if you don’t manage to pay off the amount owed on a 0% purchase card in time for instance then this could result in the rate rising to around 18%. A low rate card gives more peace of mind that your debt will be kept under control, and allows for easier financial planning.

There are also some types of low-rate cards that allow you to avail of some of the benefits of special purpose cards without any of the hassles mentioned above. For example, some low rate cards offer low balance transfer fees, rewards on spending, or travel and insurance perks. This can come without the annual fees associated with other kinds of cards offering these benefits.

To qualify for these cards (especially those that offer other benefits), there will normally be a high credit score requirement. So its worth looking at the types of low-rate cards and their requirements before making any plans. It might also be an idea to contact companies offering these cards to get their views on your prospects of successful application.