Low Interest MasterCard Packs A Lot of Convenience

2007-11-09 05:11:17

( Financial )



For credit cardholders who are looking for low interest cards, one available option is the low interest MasterCard. Some credit card issuers now offer a low interest MasterCard product at just below 10% per annum, applicable to your everyday purchases. Generally, as in the rest of the industry, the low interest MasterCard will have different rates for other non-purchase transactions. Thus, cash advances are subject to 18.49% interest rates (versus the traditional credit card rates for cash advance that can approach 24%).

In contrast to the 0 interest cards, which mean zero interest on balances transferred from another card, the low interest MasterCard will levy a modest 4.99% interest on balance transfers, and the introductory period will run for only 6 months. You will note that the range of interest rates offered to you for usual transactions is much narrower than the traditional credit card: between about 5% on balance transfers and about 10% on everyday purchases for the low interest MasterCard, compared to 0% and 18%, respectively, for the traditional cards.

If you want to apply for a low interest MasterCard, or for other low interest cards, you will have to check if you can meet the rather exclusive requirements: generally, the credit history must be excellent or must show credit scores that are higher than average. There is also a modest annual fee.

One of the big benefits you can get with the low interest MasterCard is the float, or interest free, period. The traditional cards can give you between 21 to 30 days float, between the time you make a purchase and when you are billed for payment. The low interest MasterCard allows you 55 days, interest free. With low interest and a longer float period, that is a lot of convenience.

All of the bank credit cards are offering low interest cards so you can also find a low interest rate Visa as well as credit card low interest from the other major brands.


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