West Hills, CA (PRWEB) April 28, 2006
In a never-ending quest to save money, consumers are continually in search of the most compelling low interest rate credit cards. Yet, many are unaware of the potential hidden costs involved with these low interest credit cards, but most consumers are not fully aware of just how much money can actually be saved, when used properly, by using a low interest credit card. CreditCardAssist.com, one of the leading online credit card comparison websites, guides consumers on the use of low interest credit cards (http://www.creditcardassist.com/lowinterest/creditcards.html) by providing them with helpful articles and a wealth of information about a variety of cards.
According to the web site, low interest rate credit cards can potentially save consumers hundreds, and sometimes thousands of dollars per year. A cardholder carrying a balance of just $1,000 will spend $200 per year in finance charges with a credit card with a 20% APR. A low interest rate credit card with an APR of 8%, on the other hand, should only cost around $80 per year. Furthermore, recent studies have shown that the average American carries $9,000 of debt on his or her credit card. With this type of balance, a low interest credit card provides substantial savings and should be considered a priority for all consumers.
The site warns consumers about the different methods used to determine finance charges and how these methods can impact the financial bottom-line for them. The most common method is the Average Daily Balance method. Other low interest credit cards, however, utilize the Two Cycles Average Daily Balance method. This method for calculating finance charges is more expensive because it determines the charges two times per billing cycle. CreditCardAssist.com cautions consumers to learn which method is used by the low interest credit card before applying because they may actually pay more in finance charges with a low interest credit card using the Two Cycles Average Daily Balance method rather than one with a higher interest using the Average Daily Balance method.
In addition, the site also advises those who pay their credit card balance in full each month to consider a card other than a low interest credit card. Low interest credit cards tend to have fewer benefits than other credit cards. A person who pays his or her balance off each month may better benefit from a reward credit card or a cash back credit card because finance charges are not a concern.
CreditCardAssist.com also advises consumers to consider the other benefits associated with the low interest credit card before applying. Benefits such as identity theft protection, purchase protection, travel insurance, and car rental insurance can be associated with low interest credit cards. Therefore, the site advocates comparing low interest rate credit cards in order to find the one offering the best interest rate combined with the best overall benefits. CreditCardAssist.com offers an extensive database at where consumers can learn more about the interest rates and benefits of a wide variety of low interest credit cards.
CreditCardAssist.com, based in Los Angeles, is dedicated to giving consumers all of the information needed to select a low interest credit card and how to use the card to get out of debt. For more information, visit the company's Web site at http://www.creditcardassist.com.