Bank cards with lower interest rates aren't always helpful

Bank cards with lower interest rates aren't always helpful

Monday April 21, 2008

Bank cards offering the lowest interest rates will not be the best option for everybody, especially if you are diligent at paying off your balances. While a low interest rate helps to reduce debt accruing when you have to leave a balance unpaid over a billing period, if you aren't regularly finding yourself in this situation, then you are probably being overcharged for the privilege.

If you pay off your bank cards often, then you would be better off with interest free days and a low annual fee rather than a low interest rate. An optimal interest rate means you have to be charged elsewhere to ensure good returns for the credit card issuer, so by choosing higher interest rate you could find yourself paying a lower annual fee and with more interest free days on purchases.

Please visit our comparisons or applications pages for more information and an excellent selection of bank cards.