Why is a Low Interest Credit Card Like a Chameleon? (cont.)
Contributed by Alix Mcmurray
Nothing in Life is Free -- Including a Low Interest Credit Card
It should be noted that there are many low interest credit cards available, with APRs between nine and 10 percent in some cases. However, these are free of start-up fees for people with good to excellent credit histories. The privilege of a low APR can still be obtained if the customer is willing to pay out an initiation fee. This is often somewhere between $150 and $180, and is debited from your card balance. Thus, you must pay for the privilege of initiating your low interest card, but after that can reap the benefits of a low APR.
It is possible, then, for a low interest credit card to really be "low interest" (low APR) if either the customer has excellent credit or is willing to pay the account start-up fees. Also, a low APR can be a temporary benefit during a promotional period of six to 12 months, optimizing the customer's ability to make larger purchases and pay them down before the promotional period expires.
A low interest credit card can also look like a credit card, function like a debit card, but actually be secured by a deposit. This last type of card may hold the greatest value for people who have difficulty holding to a budget and whose credit is in need of repair.
