4 Rules of Low-Interest Credit Cards
If you're looking to make a big purchase or find it a little tricky to keep up with credit card payments, a low interest credit card can certainly help

WHAT IS A LOW-INTEREST CREDIT CARD?
A low-interest credit card is exactly what it says. It won't offer any perks like rewards, cashback or Airpoints dollars, but the interest rate will be considerably lower.

Most low-interest credit cards come with some form of balance transfer, so you get the best of interest-free periods on existing debt and low interest on the ongoing debt. However, you can also avoid interest altogether by clearing your balance in full every month.
Picking the Best Low-Interest Credit Card
The trick is to pick a card with a low-interest rate, a zero (or very low) fee, interest-free terms on balance transfers and some sort of interest-free period for new purchases. When chosen correctly, the right card will grow your savings.
4 RULES OF LOW-INTEREST CREDIT CARDS
Before you apply for a low-interest credit card, read these 4 rules for doing it right and protecting your finances in the long term.
1.
Prioritise repaying your balance on time (unless you have more expensive debts somewhere else)
A low-interest credit card offers the perfect conditions NOT to repay, but unless you're paying off more expensive debt somewhere else it makes complete sense to clear your credit card on a monthly basis.
2.
If you're struggling, make sure to meet the monthly minimum repayments
Your low-interest credit card will have a minimum payment of between 2% and 5% of the closing balance. For example, if you owe $1,000 you'll need to pay between $20 and $50 depending on your card's terms. If you don’t, you’ll be charged fines. You should plan to pay more than the minimum unless you have more expensive debt to pay.
3.
Get your credit score in good condition before you apply
The key when applying for low-interest credit cards is to have strong credit; evidence of defaults or late payments will raise red flags for banks who may refuse to accept your application.
4.
Combine a low interest offer with a balance transfer
Balance transfers work best when you make regular repayments. Divide any transferred balance by 12 (if it's a 12-month offer) and be sure to keep some money aside to make regular instalments to pay it off. Otherwise, interest is charged from day 1 of the interest-free period ending.
LOW-INTEREST CREDIT CARDS BEST PRACTICE
A low-interest credit card is exactly what it says. It won't offer any perks like rewards, cashback or Airpoints dollars, but the interest rate will be considerably lower.
  - If you have an existing credit card that you're struggling to pay off, applying for a low-interest credit card is a recommended way to keep ongoing interest costs down.

  - Combine it with a balance transfer offer and you can save even more in the short term.

  - Set a credit limit you're comfortable with, and be sure to make MORE than the minimum payments every month to save on interest costs. A direct debit to settle the entire balance owed is the best way to avoid interest charges.
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