If you intend to make purchases and pay for the amount in longer terms, low interest credit cards are for you. The best credit card should help you get on top of credit card bills. You could still opt to pay balances in full every month, though most experts would advise you to get higher interest credit cards instead so you could get entitlement to airlines miles, rewards, and other incentives.
Low interest credit cards are all about annual percentage rates or APRs—interest charges computed for the entire year. A low interest card would be the best credit card for consumers who are afraid of ballooning APRs, especially when there are missed payments.
Any of the low interest credit cards available could be the best credit card for you if you do not want to experience troubles paying monthly bills. You need to evaluate your credit card usage and ask yourself the following questions: Is the card used for purchases only or for balance transfers and cash advances as well? Is the card balance huge? How much is the interest? What features are there? How is the credit card company doing in terms of customer relations?
The best credit card
Such questions are aimed at guiding you to find the best credit card. Low interest credit cards offer low APRs. Rates for balance transfers and cash advances are logically higher than those for purchases but they are still lower in low interest credit cards compared to the higher interest paying ones. In general, you would be paying low interest rates, but there are less incentives and rewards features in low interest credit cards. Lastly, the best credit card, whether high or low interest credit cards, is that offered by a reputable credit card firm with good customer relationships.
The fixed APR low interest credit cards are for you if you prefer to pay one fixed interest rate throughout the year. Whether interest rates in general rise or fall, your card would stick to its rate no matter what. These are the best credit card products for people who do not want to be stressed by external economic factors. However, credit card firms could still change APRs of such low interest credit cards, though there should be notification in advance.
More on APR
On the other hand, variable APR low interest credit cards are those that are directly dependent on economic interest rates like the local treasury bills or prime rates from the Reserve Bank of Australia. A variable APR product is the best credit card if national rates are falling. Such low interest credit cards are not recommended for people who are not comfortable with volatile economic climates.
Lastly, a tiered APR product is the best credit card for consumers who want to impose self-discipline. You may prefer to apply a 14% interest rate for specific credit card limit/balance. Any amount exceeding the limit would be subject to a higher APR. These low interest credit cards are for those people who could manage not to exceed target accumulated credit card purchases and transactions.
Andrew is a contributing author. Andrew has been working in the finance industry for several years as a debt consolidation specialist. When he is not working, Andrew shares his knowledge on the internet.