Credit Cards Deals Often Offer Lower Interest Rates

With the recent reduction in the prime interest rate many companies are offering credit card deals that make many of them difficult to pass up. Many offers include reduced interest rates for an introductory period, with low rates continued after the introductory period ends, often lower than the rate on many current cards in use. Typically, to take advantage of the some of the better credit card deals consumers are transferring balances from older, higher interest rate credit cards, realizing a savings over what they have been paying.

In some cases, consumers, especially those with an excellent credit rating can contact their current credit card company and ask about taking advantage of the some of the credit card deals they are offering to new cardholders. While the companies may not be willing to drop rates or offer a longer grace period, some will offer the credit card deals to their current cardholders as an incentive for them to remain as customers.

Reduced interest rates are not the only incentives included in many of the new crop of credit card deals, as many companies are joining forces with other businesses to make the deal more inviting. Some retailers work with the card issuers to provide an extended period between the time of purchase and the time the loan has to be repaid.

Caution Needed When Looking At Long Term Repayment

Some of the credit card deals offer as much as a year or more before the first payment has to be made on the credit card debt. The main fallacy in these offers is that if the loan is not paid in full before the due date, interest is charged from the date of the debt's inception. This can significantly add to the balance due, especially is a year's worth of interest is suddenly added to the price of the debt.

When buying something advertised as requiring no interest and no payment required for a certain amount of time, the buyer needs to read the fine print accompanying such credit card deals. They may learn that making minimum payments will be required as well as the possibility of needing to make interest payments as the no payment promise only applies to the amount of the principal.

There are many good credit card deals being made available but consumers are advised to read all of the terms and conditions before choosing which of the deals to accept. There may be some hidden charges that can quickly remove the luster from the offer.