Low Interest Credit Cards - Cutting Your Interest In Half

Compared to your average credit card APR of 16-18%, low interest credit card offers can appear very tempting. High interest rates don't matter so much when you pay your bill in full each month, but for those of us who don't pay the bill in full low interest credit cards have the potential to save large amounts in interest payments. Some low interest credit cards have an APR that is up to half that of the average credit card, in which case this could translate into your halfing your monthly credit card interest charges and reducing your debt faster.

Low interest credit cards do have one downside. This is that you won't receive any reward programmes such as frequent flyer points. Reward schemes are perks associated with credit card use. For example you can earn 1%-5% credit on every purchase you make with a higher interest rate credit card. If you use your card frequently this can add up to substantial savings and reduce your overall payment to your credit card company.

However, if you do not use your credit card for many purchases this may not be worth it. Another consideration is if you regularly make rather small purchases. This means that rewards may not be benificial to you. In this case a lower interest credit card might offer the best credit card rate for your needs.

If you make larger purchases then rewards may be the best thing for you, as the 1%-5% credits on each purchase will save you a considerable amount of money. Therefore, reducing the cost per purchase and reducing the amount of money you owe to your credit card issuer. The savings may very likely offset higher interest rates and make a lower interest rate credit card not very practical.

If you are in the habit of paying off your credit card debts monthly you may want to consider the pros and cons of low interest credit cards. What you gain with low interest, you will lose with reward benefits. If your paying your monthly credit card bill on time it's unlikely you will be paying any interest and as a result a low APR won't have much benefit for you. However, the reward programs will benefit you on every purchase.

You can make fast comparisons of low interest credit cards on line and by this means get the best credit card interest rates. There are many websites available which show the different credit cards and what they are offering you. They compare credit card features and rates side by side allowing you to make an informed decision.

Now you know the main features of a low interest credit card and the spending patterns they are suited too you should know whether this type of credit card will be of benefit for you. Review your requirements and think about your spending patterns. In this way you will be able to make the right decision on which credit card will be best for you and your needs.

Richard Greenwood is founder of credit card comparision website http://www.click4credit.com.au. The website allows users to compare low interest credit cards from leading banks and apply online.