Low Interest Vs. Cash Back Credit Card: Which Is Best For You?

Credit cards are very handy, especially for emergency cases, but they can also be trouble if you don’t know how to manage them. Interest rates for cash back credit cards and other types of credit cards start to rack up to the point of becoming unmanageable when you keep delaying payments. This is why a lot of banks offer their clients options like low interest credit cards and cash back credit cards. These are great options, but it makes people wonder which type of credit card is the best?

The truth is, there is no one right answer. The right kind of credit card depends on the person and their needs. Understandably choosing one over the other is difficult, especially if you’ve never had a credit card before. To help you narrow your choice here are some things to take note of:

Low Interest Credit Cards Are Best For:

The best way for credit card holders to avoid added charges and late fees is to pay their statements in full every month. However this is hardly the case. In fact almost more than half of credit card holders will regularly or even always carry some balance on their credit card statement month after month. Most opt to make the minimum payments because of budget constraints.

Although this helps you lessen your spending for the short-term, continuing this habit results in excessive charges due to credit card interest rates. People who rely on making the minimum payments to keep their credit cards are those who can stand to use low interest cards. A bank may offer you different rates and the best are those that guarantee the lowest or even a flat rate to make expenses more manageable for their clients.

Cash Back Credit Cards Are Best For:

There are the lucky few and the financially responsible who do not carry the weight of credit card statement balances. These people are those who stand to benefit the most from using a cashback credit card. If you are confident that you can make all your payments on time and in full there is much to gain from opting for a cash back card than a low interest credit card.

Although it seems impossible at first you can actually manage to make timely and full payments to get points and rewards from your card. It takes financial responsibility and self-control to only stick to purchasing things that are of necessity and are considered as “everyday purchases”. Those who plan to use their credit cards for shopping sprees and other luxuries with the intent of paying through installments are better off with a low interest card.

The Third Option

There are also banks who offer the best of both worlds: low interest rates for cash back credit cards. This allows you to still make partial payments for monthly statements without worrying about excessive interest rates in the future. Plus, you still benefit from the rewards system offered by your credit card provider. This is an amazing third option worth taking the time to research on or discussing with your bank!
Wondering how Interest rates for cash back credit cards are computed? Or perhaps you should consider another kind of credit card? Vist www.bestcashbackcredit.cards.