Have you looked at the interest you’re paying on your credit cards lately? If not, you could be throwing away money every month by paying too much interest when you could be paying more toward the principal on your card just by switching to low interest credit cards.
Unlike traditional automotive, mortgage, or personal loans, your credit card interest rate is not necessarily a fixed rate, and it can vary quite a bit from fluctuations to the prime rate to changes in your credit history or credit score. While those changes are typically outlined when you receive updates from your credit card company, who really reads those things? Almost no one, right? Maybe it’s time to review your finances and switch to one of these low interest credit cards! Just a few points can save you lots of money and decrease the amount of time it takes to pay off the debt.
That’s why we recommend that you sit down and review your credit card interest rates at least a couple of times every year. Once you know what you’re paying, you should compare your current interest rate with other low interest credit cards to see if you need to switch to a low interest credit card!
Don’t know what your interest rate is? You’ll find it on your current credit card statement, but don’t just look at this month’s statement. Look at the past several months and compare them to see if your interest rate has increased. (Don’t worry about it decreasing. That simply doesn’t happen.)
Once you know your interest rate, then you need to double check your credit score. If it has changed significantly over the past few months, that could significantly change the low interest credit cards that you may now qualify for. If your score increased, expect better offers. If your score decreased, the offers may not be as good as your current credit cards.