The lowest Interest Credit Cards aren't what you think they are

The lowest rate credit cards aren't always the ones you hear and read about in advertisements. Cards will boast 0% APR, then in the fine print tell you it's for 6 months, only to switch to 16% or 19% after that introductory time frame. The lowest interest credit cards are those that may not provide a 0% introductory rate, but they do provide a very low fixed rate, sometimes even below 10%. This is where you can save the most money if you're currently carrying a balance and it's where you'll make the biggest dent in your unpaid balance the fastest.

What to look for in a low rate card

So you know not to get caught up in the buzz about a new card. Credit card companies are in big competition for your debt, and in turn interest earnings so shop around that's important. Pending your credit history you should be able to find a card without trouble in the 10%-11% range. There are a lot of these around many of which might be from your own bank. To find the real diamonds in the rough of 8% and 9 % you need to dig a little deeper. These are often offered by companies that aren't large banks.

How much can I actually save?

The amount of money you'll save in interest depends on your current balance, current interest rate, and how quickly you plan on paying off your outstanding balance. With the lowest interest credit cards you can expect to see up to a 50% savings in interest each month (pending your current rate). If you continue to pay the same amount on your balance you'll also see a big time reduction in how long it takes to pay off your debt.

Is there any reason I shouldn't bother switching?

If you don't carry a balance, you always pay your statement off each month then there isn't a big reason why you should run out to find one of the lowest interest credit cards to switch to. Why? Because you're not going to see the big savings we're talking about here. If you don't carry a balance then you don't get charged interest, hence it's not as crucial to have the lowest interest rate possible. This isn't to say that it isn't important as you never know when you'll have a balance in an emergency.

So to review, it's worthing finding a low rate credit card because you'll save money and decrease the time it takes you to pay off your balance. The lowest interest cards aren't always the 0 percent credit card offers, consider what the fixed rate is later on, and how long you'll take to pay off your balance. Look for a card that's at least 10%-11%, anything under 10% is a great find and you should jump on it right away.