Having a credit card with low interest rate can be beneficial for those looking to buy some expensive items through the use of credit cards. Usually, interest rates in the range of 1.5% to 2.99% per month are considered as low when it comes to credit cards. Here, we take a look at the pros and cons of having a credit card with low interest rates, who should get a low interest credit card, etc.
There is no denying the fact that having a credit card with low interest rates in quite beneficial. Let’s take a look at some of the benefits:
Though there are advantages that can be availed when it comes with having a low interest credit card, it is not free of disadvantages.
Here are some of the disadvantages that are associated with it:
Banks are willing to take the risk of non-repayment on credit cards when it comes to HNIs and those with good credit scores. In most cases, banks offer these cards to high-networth individuals whom they think are eligible for such benefits.
As already stated, low interest cards are designed for those with strong credit profiles because the risk borne by the banks is much lower. So, if you wish to avail low interest rates on your credit card, you need to make sure you check your credit report regularly.
Ensure you pay your credit card dues and any other loan EMIs on time. Have a balance between secured and unsecured debt to ensure your credit profile is favorable. In time, if you are able to secure a high credit score, you can approach your bank to see if you are eligible for a credit card with lower interest rates.
Before you make a choice, don't forget to compare, research, analyse and then decide on the best credit card for you.
Yes, credit cards with a lower interest rate can help you save on total interest rates which is charged on the monthly basis.
To apply for a lower interest rate credit card, it is advised that you maintain a good credit score and maintain a healthy credit report.
No, banks offer credit cards with lower interest rates depending on the various factors such as a good credit score, credit history, etc.
Yes, ICICI Bank has the ICICI Platinum Chip Credit Card.
At a low regular interest rate of 3.6% p.m. and a 2.5% cash advance fee, this luxury card makes an attractive deal. The HDFC Regalia Credit Card requires cardholders to pay a joining fee of Rs.2,500 and a renewal fee of the equivalent amount. Additionally, it grants a welcome benefit of 2,500 Reward Points.
The HDFC Infinia Credit Card has a regular interest rate and cash advance fee as low as 2.5%.
Yes, Citi Bank has Citibank Rewards Credit Card
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