Low Interest

For those new to the credit card scene, credit card interest is the main way in which credit card issuers generate revenue. Interest is what you are charged while you have money out on “loan.” As of January 15, 2012, the average rate of interest on consumer credit cards is 16.70 percent. Those with good credit usually pay less interest, and those who are late on payments or miss payments altogether can expect a higher interest rate; sometimes even double that of what an individual with good credit may be paying.

Some credit card companies offer low interest credit cards for those with a history of good credit. If you’ve made all your payments on time, and are looking for something with a lower interest rate than the card you currently use, banks like CitiBank, Chase, and Discover all offer low-interest credit cards for those who qualify.

As a credit card customer, it is always important to read the fine print of credit card offers and applications. Some “low-interest” credit cards only offer low interest for a limited time (i.e, an “introductory” period), after which they hike up the interest rates and hope you won’t notice. But, there are some credit cards that have continuously low interest. Those cards include the Slate from Chase, the Discover More card which also offers an eighteen month balance transfer option, and the Citi Diamond Preferred card which along with no annual fee, low interest rates and zero percent APR on 21 months’ worth of purchases, also gives their cardholders exclusive access to the purchase of presale tickets and preferred seating, among other advantages.