Finding a Low Interest Rate Credit Card

When searching for credit cards, most consumers prefer one with a low APR. Nevertheless, when confronted with attractive offers, perks or rewards, the interest rate may suddenly become just a secondary factor.

The fact is, reward credit cards usually come with much higher interest than non-reward cards. The interest rate of reward credit cards ranges from 14% to 19%, depending on the issuer and the type of reward program. Despite this, many consumers still prefer them over regular credit cards because of the promise to earn bonuses, incentives, discounts and other privileges.

Why Get a Low Interest Credit Card

Why should you be concerned about the interest rate? Many consumers are advised to pay off their monthly balances in full to avoid the additional APR. However, even if your goal is to pay off your charges in full, unexpected circumstances may force you to submit only the minimum due and carry over your balance to the next month. When this happens, your bill can increase by 14% or more because of the interest.

Even worse, your credit card company may increase your interest rate by as much as 25% to 30% because of late payments. The changes in the Prime Rate can also dramatically affect your credit card’s APR at any time. Clearly, getting a credit card with a low APR can protect you from the risk of bad debt.

Low Interest Credit Card Offers

If you search online, you can find viable credit cards with low interest rate offers. Nevertheless, aside from having a low APR, look for credit cards with no annual fee and low transaction charges. You can find the best deals only if you take the time to shop around. Check out credit card review websites for a list of the best low interest rate credit cards in the market.

Also, take the time to read and understand your credit card’s Terms & Conditions. By reading the fine print, you can carefully examine how the interest rate is calculated and see if there may be hidden charges or unreasonable terms.

As a credit card holder, make it a habit to submit your payments on time. Avoid charging expenses on your card that would be difficult to pay as a whole. As much as possible, avoid carrying over a balance from month to month. By doing so, you can save your money by not paying the extra interest rate on your card.

Never use your credit card to take out cash. Most credit cards today can be used in the ATM for obtaining cash. However, using this feature can only cost you more. Take note that the APR for cash advances is usually different from the rate of interest charged on purchases or balance transfers. There are low interest credit cards that have more than one APR. Add to this, cash advances are not covered by the grace period so the APR is automatically added to your bill, the moment you took the cash.

Find out more:


About the Author

Author: Ann Wilson

Ann Wilson is the head writer of This resource provides consumers with valuable reviews and information on the best credit card reward programs. Its main objective is to help people to take advantage of reward credit cards and start earning reward points. Copyright © 2012

Leave a Reply

Your email address will not be published. Required fields are marked *