Pros And Cons Of Low-Interest Credit Cards

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Low interest credit cards feature low-interest rates, as the title implies. Rates on low interest cards typically vary between 10% and 15%, which is much less than a credit card with travel incentives. If you usually carry a monthly balance, these cards are perfect for you.

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Following are the Pros and Cons of Low-Interest Credit Cards:

Pros:

Save money on interest payments:

You'll save money on monthly interest payments, which is arguably the largest benefit of low interest credit cards. Consider a low interest credit card if you frequently carry a debt on your credit card from month to month.

Lower annual fees:

Annual fees on low interest credit cards are often cheaper. There may be an annual cost of $0 or $30, depending on the card you pick.

Helps pay off current credit card debt

We usually advise utilising a balance transfer credit card if you have a significant amount of credit card debt. Credit cards with balance transfers are without a doubt the finest method for paying off credit card debt that has accrued.

Cons:

No rewards:

The main drawback of a low interest credit card is that it won't provide as many bonuses and incentives as a rewards card.

Say no to cash advances:

For cash advances, the majority of low interest credit cards have hefty interest rates. Using your low interest credit card for cash advances is not something we would advise.