Low Interest Credit Cards – Are They Right For You?
Credit cards come with many different offers. One of the fastest growing type of credit cards are low interest credit cards which offer low ongoing interest rates compared to most credit cards on the market. They sound good but are they the right choice for you? Find out here.
A number of credit card companies offer low interest in order to attract customers. Unfortunately, these cards are not suited to all people. At the end of the day, how you use your card determines which one is best for you.
Low interest cards are suitable for those who regularly carry a balance from month to month. For these people, the lower interest rate will reduce the amount of finance charges they pay. Keep in mind, however, that some cards charge a very high annual fee in order to cover up for the low interest making it a must for you read disclosures carefully.
Firing on All the Wrong Barrels, by Inya Ivkovic, MA
Never would I believe that U.S. interest rates could fall to zero, but that is simply the reality of the current times. At the Fed meeting on Tuesday, the last one for this year, the Federal Reserve made a bold statement after aggressively cutting the key fed funds rate to the range of 0% to 0.25% in an attempt to pump up the faltering U.S. economy.
It is clear that the Fed needed to try to halt the economic slide in the U.S. The historically low record rates will be an incentive for consumers to spend. Low rates will also be used to try to improve the metrics in the distressed housing and loan markets.
Will Interest Rate Cuts Hit The High Street?
I was wrong, last week when the Bank of England announced the interest rate cut I was convinced it would not make a difference to UK high street interest rates. However there have already been a few mortgage providers reacting to the announcement by reducing their rates also. Of course any new interest rates introduced by mortgage providers will not come into effect until January 1st 2008. So unfortunately you won’t see any actual savings until you’re mortgage payment at the end of January 2008 is made.
If you have a £100,000 mortgage you should see the 0.25 per cent interest rate reduction add an extra £15 to £20 to your pocket every month. If you’re on a fixed rate mortgage of course you’re tied into the lenders rate for the period of the offer.
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