Choosing a Low Interest Credit Card
If your current credit card has a high interest rate, you might want to consider trading it in for a new revolving credit account with a lower interest rate. If you have a good credit score, it's likely that you receive offers for low interest rate credit cards all the time. There is no reason to keep paying a high interest rate when you can get a better deal simply by making a telephone call or filling out a paper or online application form.
Know What You Are Doing
Of course, it's important to make sure you understand the implications of your actions before you open a new credit card account. Promise yourself that you will destroy the old credit card as soon as the new one arrives. Keeping both cards increases the likelihood that you'll start buying items that you can't afford. The last thing you want to do is find yourself slipping further into debt when your original intention was to find a way to save money on credit card interest.
Understand the Offer
Before you switch from your current credit card to a new account with a lower interest rate, make sure you understand the details of the cardholder agreement. Some companies offer very low introductory interest rates to woo new customers, only to increase them after just a few months. Make sure you aren't going to find yourself with a higher interest rate than you already have a short period of time after opening your new account.
It's also important to make sure you understand any other charges that might apply to the account. For example, see how the new credit card you are considering stacks up against your existing account in terms of late fees, over the limit charges, and rewards programs. Doing this will help you fully understand whether or not the new account will result in an actual cash savings for you in the long run.
As a general rule of thumb, it's important to remind yourself that any credit card offer that seems to good to be true at first glance probably is one that you should avoid. It's likely that if you delve into the fine print, you'll find some terms and conditions that could make your head spin.
Make a Wise Choice
You don't have to accept the first low interest credit card offer that crosses your path. Don't lose sight of the fact that you are the customer. You have every right to shop around for the best possible deal. It's well within your rights to request information about several different card programs so that you can make a fair comparison of the relative merits of each one.
You can even call your current credit card company and ask for an interest rate reduction. If the lender wants to keep your business and knows you are shopping around, you might be surprised to find that you don't even have to open a new account to get a better deal.
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