Credit cards with accompanying rewards programs often come with annual fees as well as interest-free days. This type of cards is best suited for people who use their cards frequently. However, though this card provides many advantages to cardholders, it will come with high interest rates.

Advantages

– Extremely low interest rates

– Low credit limit

– interest-free days

– Introductory promo deals

Disadvantages

– High interest rates for cash advances

– Will cost more once the introductory period is over

For this reason, this card is not recommended for people who cannot pay more than the minimum monthly balance, mostly those that do not have a stable source of income. This is why no annual fee credit cards are the natural alternative for most people. This card often comes with interest-free days, usually around 50 days on purchases.

In addition to this, no annual fees cards come with low interest rates. Minimum monthly payments are also lower as compared to personal loans but this will come at a high interest rate. The low credit limit on no annual fees cards also has its advantage as it keep the card holder’s expenditures in check.

On the other hand, there are many people who are not aware that cash advances incurs higher interest rates of approximately 15% once you withdraw money through an ATM using your card. Note that transferring money through phone or internet from your card to your bank account is also considered as cash advance. Of course, some banks offer special introductory deals to prospective customers. These offers include low balance transfer rates for a specified duration of time, usually for the first six months or no annual fees for the first year.

While these special offers, particularly introductory low interest, may seem appealing, they are somewhat designed to dazzle and then trap uninformed clients. It will be quite a shock to discover that the promo has ended and the card reverts to the full rate. This is why it is crucial to read the fine print before you sign any documents.

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