"The secured credit card is basically a credit card that requires a deposit into the line of credit before you can use it."
Is the Low Interest Rate Credit Card a Boon or a Ruse to Hook You Into Debt?
Today, everyone has a credit card. As soon as you become 18, a credit card is high up on the 'to have' priority list. And it should be this way, too. What can you actually do without a credit card today? You cannot shop, you cannot drive, you cannot even surf the Net. Credit cards are not a luxury item anymore, they are a necessity.
This necessity is fuelled by the fierce competition that exists today between the competitors who provide plastic money. Since the interest charged for the cash advanced is very high and the convenience that comes to it matches the cost, the credit cards are a hot commodity both for the providers as well as the consumer. Due to the heavy competition, there are a lot of incentives floating around meant for grabbing the attention and patronage of the consumer.
The Low Interest Rate Credit Card - What You Make of It
The credit card is a profitable product for it providers because it charges high interest on the outstanding amount. It is easy to get into debt when all you need to do is sweep the card to buy anything and everything. Once you are in debt, the provider will reap the benefits because you are hooked into paying them the money lent to you along with the huge interest charged.
So what is the profit of the provider if they offer you a low interest rate credit card? Why would they want to share their profits with you? The answer is easy and quite obvious if you look more deeply. They want you to use their credit cards. And what is wrong with that you will ask? More so when they provide you with a low interest rate credit card.
There is More Than Meets The Eye
Sometimes, the low interest rate credit card is just that. These cards are meant for a special market segment such as students, who actually do not have too much money, but would like to use the advantages of the plastic money. Sometimes, the low interest rate credit card is only a ruse to get you hooked to a certain brand of credit cards.
In the latter case, the provider would mention somewhere in small print that the low rate of interest would be valid for a fixed time limit, say 6 months to one year, and then it will revert to the market or standard rate of interest. This is why it is very important that you read the terms and conditions carefully before accepting the offer.
"Other factors come into play when people look for the best credit cards including length of any grace period, minimum payment requirements, annual fees as well as interest rates come into play when deciding for which credit card to apply."
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