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Step 1
Understand the period of time for the introductory rate. Many of the low introductory rate credit cards offer the attractive rate for a certain period of time. Make sure you understand whether it is for six months, 12 months 18 months or two years.
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Step 2
Double-check whether the low rate applies to purchases and balance transfers or one or the other. Some credit card companies allow their cardholders to transfer balances to the new low rate credit card and have the introductory rate applied. Other credit cards only allow the introductory rate for purchases. It's important to know how the card applies the attractive rate because it will dictate how get the most out of the low introductory rate.
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Step 3
Inquire about late payments. Some credit card companies will void the low introductory rate if there is one late payment. Make sure to understand the fees and ramifications of paying late. Usually, low interest rates are offered to individuals with stellar credit so the thought of a late payment is not usually an issue, but with the current economic upheaval, one never knows what the future holds. It’s best to understand upfront how a late payment will affect the low rate.
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Step 4
Find out the rate applicable once be introductory rate is over. The low rate served to lure you in to get the credit card. Now that they have you as a customer you will eventually be subject to a higher interest rate beyond the introductory period. Find out what the rate is. If it’s higher than your other credit cards, then you know you must pay off any outstanding balance before the expiration of the introductory rate.
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Step 5
Check out your options. If one credit card company is sending you an invitation for low interest rate credit card, check out your options. Websites such as creditcards.com and directbanc.com categorize and list credit cards with low interest rates and 0% on balance transfers. Do some research. Don’t accept the first offer presented to you.
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Step 6
Use the card as an interest free loan. If you are about to make a major purchase that will take six months to finance, why look at taking out an interest free loan by accepting the low introductory rate and pay off the outstanding balance within the allotted time. Learning how to use these offers wisely can work out to your financial advantage.
