People have mixed opinions about credit cards. Some love them, others can go their entire lives without them. Just like everything else, credit cards have their share of pros and cons. For this reason, it’s imperative to do some research and compare credit cards to know if getting one is right for you.
What is a credit card introductory rate?
It refers to the promotional rate that serves as an incentive for signing up.
When you compare credit cards, you’ll see that there are different types and features. One thing to take into account is the credit card introductory rate. It refers to the promotional rate that serves as an incentive for signing up. Obviously, it’s lower than the usual interest rate. How low? Some can be zero percent for one year!
While that may be an offer that’s hard to refuse, just think about what happens to the interest rate after the introductory period. Your credit card may come with a high ongoing interest rate that may be too much for you to handle. You may also find that while you were attracted to the introductory rate that you signed up for, you actually don’t need the card.
Is it worth getting a credit card introductory rate?
There are always two sides. Of course, it comes with several benefits. The key is to carefully analyse if you really need a credit card, and if you are financially capable of paying your debts on time and in full to avoid paying the interest rate. If that’s the case, then getting a credit card with an introductory rate may be worth it.
What are the features that you need to look for when you compare credit cards? Here are some things to consider:
- Check the duration of the introductory rate. A longer period gives you more time to pay off debts without interest.
- Find out what the standard interest rate is. Once the introductory period ends, the card will revert to its standard rate. Make sure to pay off your debts in full before the introductory period expires.
- Know the annual fee. This is one of the fees that you usually need to pay. There are cards with higher annual fees that offer more rewards, but make sure you know what you need to pay every year, no matter what your spending habits are.
Do you have other tips on how to compare credit cards to get the best deals? Share your insights in the comments section.