My current situation has changed and I need to try to save money. Every bit helps. I want to get myself a new credit card, one that will help me save money, or at least not put me under such a strain.
I’m a little hesitant to talk to my bank. I get the feeling they will only advise me on how they can profit from my decision. Who else can I approach and what advice do you have on applying for a new credit card?
You’re doing the right thing. Depending on the card, a low interest credit card can be anything from 5%-11%. Generally, it’s somewhere around 11%, but that’s still better than what you’re paying now. The only thing is, you may not get as much rewards or benefits.
I don’t really care about rewards and stuff like that. To be honest, I don’t think I ever enjoyed any reward or benefit from my 19.99 percent card.
Same thing here! If you don’t want to go to your bank, I suggest that you speak with ShopTheRate for some advice. That’s what I did and they were really helpful. They gave me good advice in trying to lessen my financial strain.
The thing about these low interest cards is that they either have no annual fee or it’s a low fee. I did a balance transfer and it was such a huge relief!
What exactly is a balance transfer? I heard about the term before, but never really understood what it meant.
Let’s say you owe $5,000 on your current credit card. You are paying interest on this amount. You need to pay a minimum amount. What you can now do is to apply for a low interest card and transfer this $5,000 onto your new card. Now, instead of paying the 19.99% on the 5,000, you only pay about 5% or 11% (whatever your new card is) so you aren’t stressed so much.
In fact, some cards offer you things like 6 months of no interest as an introductory offer. For 6 months, you pay zilch! But you need to find out what it is after the 6 months. Be very clear on what happens after the 6 months before you sign anything.
You can learn more about how to complete a balance transfer with this guide.
I love this idea! That’s my kind of card! That could really help me right now.
Go and talk to a financial institution for advice. Compare different cards and choose one appropriately, just for you. Ask them advice on how to use and benefit from a low interest card. If you are not careful, it could still be a problem. Talk to them and ask loads of questions. Be clear on what is required of you.
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