Credit cards are one of the most widely used financial tools that not only help one make purchases but do so much more. The right credit card can help you build a very good credit history and thereby secure the best rates on different offerings, provided that it is used responsibly. Moreover, it lets you earn several rewards that you could miss with a debit card.

A credit card has functions similar to a debit card. However, the card does not withdraw your funds but lends you a short-term loan. Depending on when you pay off the loan, you do not incur interest rates.

Low interest credit cards enable the user to manage his/her financial balances more efficiently. Typically, one is advised against carrying balances on credit cards. This is because interest rates can escalate quickly and create a major issue with one’s personal budget. Moreover, overtime credit overdue can even lead to bankruptcy. With low interest credit cards, the balance can be conveniently carried from one month to another, without the accrue of rapid interest charges.

• Who should opt for low interest credit cards?
  The option of low interest credit cards is primarily designed for people who habitually carry credit balance from one month to another but do not want to pay heavy interest rates. Also, it is a good option for people who intend to carry balances in the future. It lets one steer clear out of luring high-rewards credit cards that charge high fees.
• Period of carrying balance with low interest credit cards
  The period offered for carrying balance with low interest credit cards can differ from provider to provider. However, the best offers from providers can let one carry a balance for 12 months or more without being hassled about paying interest. Post the allotted period, an average interest rate is offered with low interest credit cards.
• Interest rate levied on low interest credit cards
  The average interest rate offered on low interest credit cards is greatly impacted by the credit history. The rate can vary anywhere below 13% and can rise upwards based on how bad the credits are. It is essential to understand that even low interest credit cards must be used as a backup for long term loans as the interest rates are still higher than instalment loans.
• Importance of paying balance on time
  Low interest credit cards give one the advantage of extended period to pay off balance and thus, one should strive to pay in full each month or before you have to pay an interest rate. This will help in boosting your credit score. Moreover, with credit cards, the interest calculated each day is added to your balance, increasing the burden of paying off a very heavy amount. Thus, speeding up the payment process will greatly benefit personal financial management.
• Comparing the best low interest credit cards
  Deciding on the best low interest credit cards and picking one based on your needs can be indubitably confusing. However, some of the important criteria to base your comparison include the annual credit card fee, 0% purchase APR period and the regular APR that must be paid. Low interest credit cards come with varied offerings and in-depth information from the company’s officials will give you better insight.