Low Rate Credit Cards
Low rate credit card offers are usually introductory or variable so it is up to you to decide which card will suit you best. Reading the fine print in the credit card application can save you from making a mistake. If you want to transfer a balance that you estimate will take you a year to pay off, it makes sense to find a card with a low fixed rate for 12 months. However, if you want to pay off your balance slowly, it is better to go for a card that has a low fixed rate for the entire balance transfer account. Sometimes these low rate offers also include low APR ratings which tend to stay lower even after the introductory rate expires. Even if you get a low rate, remember that many credit card applications include clauses that state that your rates can be raised without much notice to you, especially if you are late with just one payment. Try to stay away from cards with these clauses if possible. However, fixed-APR on balance transfers are the only exception to this rule.
Another question to ask yourself when looking at low rate credit cards is what are the minimum requirements to keep the low rate? Sometimes cards require at least one purchase every month in order to keep your low rate. Also, consider whether the low rate applies to new purchases as well before charging. Balance transfer fees sometimes surprise customers and can put people trying to better manage their finances into more debt. Look for a card that uses an average daily balance and try to come up with an estimate for what the new rate may look like when the low rate expires. This can help you better asses the outcome of signing to a low rate credit card.