How To Pay Off Debt In 2021?

In today’s world of uncertainty, having a credit card can be a life-saver. But that is not to say that credit card interests can often be very hefty for a lot of people. Owing to the financial risks taken by the card issuers, they also like to have that risk pay off by levying interest rates that can go as high as 3.35 percent per month or 40.2 percent per annum. In this scenario, it goes without saying that a low-interest credit card could be very useful for one.

What does it mean to have a low-interest credit card?

Usually, if the interest rates of a credit card range between 1.5 percent to 2.99 percent per month, then that is considered a low-interest credit card. They have multiple advantages over a standard credit card; the most obvious one being that it can certainly help you save a lot of the money that goes into paying your standard credit card interests. That aside, having a lower interest can also help you pay off your accumulated credit card debt if you have any.

7 secrets to help you grab the lowest interest credit card

But the big question is “How does one get to a low-interest credit card?” Here are a few tips and tricks that can help you.

1. Maintain a positive credit profile

Maintaining a positive credit profile and a positive credit score is the primary step towards it. Credit card issuers are very strict about one’s credit profile, especially before approving a low-interest credit card.

2. Check your credit reports regularly

Check and correct any inaccuracies in the credit report. Like sometimes, a loan that you might have paid back can show as outstanding in your credit report, bringing your score lower. Check your credit report carefully and get any such inaccuracies immediately corrected because such things can potentially come in the way of you and your much-awaited low-interest credit card.

3. Pay credit card dues on time

There is not one but various paths to maintaining a good credit history. One key part of it is to pay your existing credit card dues in time. Accumulating credit dues is never a good look on you from the point of view of your credit card issuer.

Paying your credit card dues on time can be achieved by shopping in moderation, shopping for necessities, and keeping up with your payment dates as strictly as possible, no matter what.

4. Pay loan EMIs on time

If you pay your EMIs diligently, you’re always going to have an attractive CIBIL score. That can immediately put you into the good books of your bank.

5. Don’t have a lot of debts

Credit card issuers will always consider your other debts while they scrutinize your application. If you have a lot of loans, your credit utilization is too high. It is usually advisable to keep your credit card debt below 30-35 percent of your credit limit.

Credit card issuers might also compare your debt-to-income ratio, which, if high, might put across a bad reputation. A high debt-to-income ratio indicates that you don’t have enough income to pay back your debts and are relying on further debts to pay them back. Therefore, it’s important that you don’t take too many debts while you try to apply for a low-interest credit card.

6. Have a stable, verifiable source of income

Most low-interest credit card issuers would also look at your source of income. In that case, having a stable, verifiable source of income is certainly helpful. This acts as an assurance to your bank that you are indeed capable of paying back your credit card dues.

7. Save up for a secure credit card

One can opt for one of the numbers of credit card types, depending on what suits their requirements. There are dedicated travel credit cards, shopping credit cards, reward credit cards, and even secured credit cards. Secured credit cards require cash as collateral from the cardholders, mostly because they are made eligible for people with new or bad credit, who can’t get approved for a regular credit card.

Because these credit cards are issued against collateral, the interest rates are lower for them. Hence, a great method to get hold of a low interest Secured credit card would be to save up for the security deposit. A lot of renowned banks require you to make a fixed deposit of as low as only Rs. 20,000.


To give an example, there are some banks that charge an interest rate of 2.25 percent per month and a 30 percent per annum for cards secured against collateral. For unsecured cards, the rates are higher at 3.35 percent per month, or 40.2 percent per annum.