Your search results will display all credit cards offering an APR below 15%. You can easily compare all the credit card options with low APR. Low APR or annual percent interest rate is ideal for those card holders who have a revolving debt or outstanding balance carried month after month. In such cases, a lower interest rate on the outstanding balance will help save more money that any sort of rewards that could be offered on the credit cards. Some balance transfer cards also offer floating APR, where the interest during the introductory period of 12 - 18 months is attractively low.credit cards for excellent or good credit | credit cards for fair, bad or new credit | cash rebate credit cards | student credit cards
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Benefiting from Low Interest Credit Cards
Low interest credit cards allow card holders to carry outstanding balances on their credit cards, without hurting themselves too much. In other words, these are loans with low interest that are of particular help to those who run small businesses with their credit cards or have high expenses, due to which they have revolving debt month after month.
Who should opt for it?
Low APR credit cards are generally more useful for those with outstanding dues in excess of $1000. This is because these cards, do not usually come with frills like cash back offers, airline miles or rewards. The card holder will benefit if he saves on interest more than he would save on the rewards available to him on other cards.
Types of low interest credit cards
There are two types of low interest credit cards. In the first category, the APR or annual percentage rate is generally low around 11 - 12% or even single digit in some cases. In the second category of credit cards, the APR is broken down into phases. During the introductory period, the APR is extremely low, sometimes even 0%. But this phase lasts for up to 15 - 18 months, depending upon the credit rating of the individual. After the introductory period, the rate could shoot up to over 15%, thus troubling card holders who have outstanding dues even after the introductory period.
Fixed and variable APR
Those who are planning to go for low APR credit cards should learn to distinguish between fixed and variable APR credit cards. The fixed rate credit cards are those which have a constant APR throughout. The variable APR credit cards could be either balance transfer credit cards with introductory offers or credit cards whose rate depends on another parameter like the national prime rate. In the latter case, it becomes hard to predict for the card holder what the final APR of the card would be as it would fluctuate along with the prime rate. A lot of card issuers also give out credit cards with APRs bound by limits. For example, there are cards available in the market whose rate varies between 11 - 20% irrespective of other factors.
A word of caution
Card holders should also be careful about fine print. There are cards with terms and conditions that state that the low APR could be replaced by a higher interest rate if the card holder fails to make his payments on time, thus snapping the advantage.