Low interest rate credit cards either have a low introductory APR or low fixed rate APR. This is an important comparison tool as a low fixed rate APR means that the interest charged on the credit card will remain the same. However, if it has a low introductory APR, once the grace period is up the APR will increase. It is therefore important in the latter case to know whether the APR to be applied after the introductory phase will be fixed or variable. Although a bank may state that it offers a fixed rate APR, because of a clause in the credit card agreement they can change this after giving you notification of the pending change; this is normally a thirty day notice.
Examine whether or not the card offers cash back rewards and rebates. This can be a great way to get something ‘back’ for using the card.
What types of fees are applied to the card is also important in making a decision as to which card is best for you. Some cards attract no annual fee while others attract fees ranging from fifteen dollars upwards. The amount of the fee is invariably dependent on the type of card, that is, regular, gold or platinum card.
Some cards also incur monthly finance charges, these charges are generally for various administrative costs and are tagged to what you spend. Other cards have one flat monthly fee, but this charge is normally applied regardless of whether you use the card or not.
A low interest credit card is generally a good choice for those who cannot pay off their balances monthly. The only way to find the ideal card is to do some informed research while armed with the knowledge of what your needs are.
