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Credit Card With Low Interest Rates Research Team | Posted On Thursday, October 11,2018, 06:39 PM

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Credit Card With Low Interest Rates



A credit card is all about borrowing now and paying later. The owner of a credit card can use the card, to pay for goods and services without having to pay in cash. Through the credit card, you can borrow money (also called cash advance) from a bank, to make purchases. Carrying a credit card is more convenient than cash. Credit cards are widely accepted and can be used to make big purchases.

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Credit Card With Low Interest Rates

Advantages of a low interest credit card:

A credit card generally charges an interest of around 2-3% a month. However with a low interest rate credit card, rates could be low:

  • Saving on annual fees: there are some special credit cards known as low interest credit cards. These cards carry a lower annual fee, compared to normal credit cards. A cash limit is set on the card each year and the bank that issues these cards, can also waive off annual fees on spending over the minimum limit.
  • Savings on interest: these card charges a low interest rate. If the card holder uses the rollover credit facility, then he is charged a lower interest. In case the individual delays the repayment on the credit card dues, an exorbitant amount of interest will be charged.
  • Lower annual percentage rate: these cards come with a lower annual percentage rate. This enables the card holder to continue with the same rate of interest, even after the introductory period.
  • Helps in paying debt: Using a low interest credit card enables the card holder to pay off the accumulated credit card dues without having to pay any extra interest.

Disadvantages of a low interest credit card:

There are certain drawbacks to using a low interest credit card.  Let’s discuss them:

  • Offered to high net worth individuals: any salaried individual can avail a credit card issued by banks. However low interest credit cards are only offered to individuals having high net worth. Banks want to lure these people, so that they gain valuable customers.
  • Offer to people with higher credit score:  the banks offer these cards to individuals, with a higher credit score. Not everyone is eligible to avail these cards. An individual must have a clean credit record and a good spending and repaying pattern to access the low interest rate credit cards.
  • Lesser perks available: these cards do not carry a lot of perks and benefits. As the card holder is charged a lower interest rate, he is not offered benefits like coupons, cashback, air miles or discounts.
  • Cash advances are costlier: these credit cards charge a higher rate of interest when it comes to cash advances. It is advisable not to go for cash advance payments using these credit cards.
  • Fees on balance transfer: these credit cards charge a fee on balance transfer. Therefore it is recommended, to be aware of this while moving credit card debt to the low interest credit card.

Who can apply for a low interest credit card?

The low interest credit cards are special privilege cards that are offered by banks only to a limited number of customers. There is a minimum eligibility to avail these cards. A bank is not willing to risk a non-repayment from the credit card holder and therefore provides these cards to individuals only having high net worth or a good credit score.

A person who wants to avail a low interest credit card must have a good credit score. Ensure, credit card dues are paid on time. If a person has a lower credit score, he is not eligible for these cards

A low interest credit card helps save money each month. These credit cards are good options for individuals who carry month on month balances. Some low interest credit cards have 0% introductory rate while others offer cards at the ongoing market rate.

SEE ALSO: National Health Insurance Benefits And Plans Online

Best low interest credit cards in India:

Citi Rewards Credit Card: these cards come with zero joining fees. You can earn up to 10x reward points on apparels and departmental stores. A bonus can be earned on an expenditure of Rs 30,000 each month. One gets 2500 points for activating the card and the points never expire.  It charges an interest rate of 3.25% per month and a cash advance fee of 2%.

First Citizen Citibank Titanium Credit Card: this card also comes with zero joining fees. The card offers zero renewal fees and charges a regular interest rate and a cash advance fee of 2%. It offers benefits on beauty and wellness products. One can redeem points at shopper’s stop payment counters. It charges an annual fees if an individual spends less than Rs 30,000 each year.

HDFC Infinia Credit Card:  the Infinia card from HDFC bank is a low interest rate credit card that offers a regular interest rate and a low cash advance fee. However, there are fees an individual has to pay for signing up and the renewal fee of the card is quite high. The card does not have a preset spent limit. This card encompasses an extensive range of privileges and benefits that can be availed by the card holder.

SBI Advantage Platinum Credit Card: the card charges a low rate of interest each month and has a slightly higher cash advance fee. The joining fee and the renewal charges are also quite high. However, there are some benefits offered by the card as privileges.

ICICI Bank Instant Platinum Credit Card:  this credit card is available at a regular interest rate and a slightly higher cash advance fee. There are no joining charges or renewal fees. The card holder can avail an interest free credit of up to 48 days on purchases made using the card.

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