Last months best credit card offers as selected by the viewers:
1) Chase Bank Platinum Visa 2) Discover Card More Card 3) American Express Blue Card 4) Citibank's Citi Platinum Select MasterCard
Low interest credit card offers and 0% credit card offers
Low interest credit card offers and how they should be used.
What are low interest credit card offers? Well, they are the credit card offers which charged you a low interest rate. For instance a 0% credit card offers are obviously low offers, but are they your best bet. A 0% credit card offers are very enticing as your first instinct is to say that you only pay the original amount if you pay it off within your set time frame. That is not true with all low interest credit card offers. If you read the infamous small print you will find out there is a one time fee to make the transfer or purchase which ever fits your situation.
0% credit card offers
For instance most retail stores throw 0% credit card offers at you like candy. Most new to credit cards and others whom have had credit cards do not realize that if you fail to pay off a credit card within the timeframe stated; you will be charged the complete interest accrued since the day of the charge at an inflated rate. retail stores love to make you pay twice for the same gift.
Low interest credit card offers Prime offers
Most would immediately think that a low interest credit card offers are 0% credit card offers and that is it. That is not correct. There are many different types of credit cards that exist that you have probably never heard of. Did you know, that for instance, Chase has a credit card in which you can pay a flat fee of $100 (This fee is varies based on your situations) a year and get prime? Think about that for a moment. If you are paying 9% 10% or even 11% on a large balance you could actually make that back in the interest you would have paid within a month or two, lower your current credit card payments, and reduce your total outstanding debt by switching credit card companies and paying a fee for a certain rate. Make sure you realize this is not the same thing as a fixed rate. Prime fluctuates, but is the smallest amount you can get other than 0% credit card offers or low interest fixed rate credit cards.
Low interest credit card offers prime continued
Before moving on here is some food for thought if you use 0% credit card offers for new purchases and 0% credit card offers for balance transfers you will need at least a second credit card or possibly a third in order to keep yourself from needing the credit card in case of an emergency. It is very common practice to have unexpected bills pop up that you can not cover. So what does most do in a situation like this. Since they haven't planned ahead they have no backup for such a situation and end up using the 0% credit card to cover the situation at hand. This is where the credit card companies start breaking even on lost interest for the 0% interest credit card offers because they will compound your interest without reducing your amount owed on the new balance.
The past fees:
In the past: credit card companies didn't rely on transfer fees for their low interest credit card offers to make immediate returns. So how did the credit card companies make their profits? The credit card companies for years had been getting around the 0% transfers by giving individuals too much credit so they have the ability to over extend themselves or by taking any current balance before the transfer and any charges made after the transfer and letting the interest and principle roll over. The balances continue to roll over month after month while you are paying off your low interest balance transfer. The previous bill and current charges amounts owed will continue to grow until your promotional period is over or until you pay off your transferred amount. It comes down to this one simple fact every cent of your payments you make will go to the 0% balance so that you may incur the maximum amount of interest for other balances that you may have previously had and or currently charged onto that account. You must remember to think like a business.
The present:
The balance transfer fee has been a simple flat percentage rate say 3% with say a $25.00 minimum and a maximum of $100.00. The fee on top plus the fact they hope you foolishly use the newly acquired credit card before you pay of the 0% credit card offers for which it was started allows the credit card company get you both ways. This is the process of sticking it to you in the beginning and getting you when you are trying to escape. It is vary similar in nature to a bait and switch or a front end product followed by the back end sale in which your rate for the back end is a premium rate compared to your standard rate.
Low interest credit card plan
1) Find 0% credit card offers without fees to transfer
2) Get a second card with the lowest fixed rate possible not for current use just for emergencies
3) Budget out your introductory period to always pay off your 0% credit card offers within the grace period
4) Transfer balances of other debts to either fixed rate credit cards or 0% if you can lower interest rate.
There are more advanced techniques and it is discussed in more detail here:
How to use multiple credit card offers effectively.
For highly competitive offers: 0% credit card offers fixed rate credit card offers or for credit card articles