Low APR

For those of you that typically carry a month to month balance you may want to open a Low APR or “low interest” credit card to reduce your monthly payments.

Many credit card companies offer low 0% introductory interest rates for your first year. However, you will want to make sure that you get a low variable APR after the introductory period is over. Low interest credit cards offer consumers a sensible approach to pay back any credit card debt they may have. If you have promised yourself to payoff your debt this year then a low interest credit card is your best route! All major banks and issuers, like Visa® and MasterCard®, offer special low interest incentives with select credit cards and typically follow this with a low variable rate (always read the fine print!).

Three primary choices for low interest Credit Cards:

1) Choose a 0% introductory rate credit card (typically offered for 12 months). This is ideal if you believe you can pay off your entire debt within the introductory period. Be sure to make a plan of action and compile a month by month budget to ensure this is doable with your current financial situation.

2) Choose a low interest credit card with a low introductory rate (preferably 0% APR) followed by a low FIXED rate. If current rates are fairly low compared to recent levels then you may want to opt for a low fixed rate credit card. Be sure to evaluate current credit card rates to accurately assess whether a fixed rate or variable rate is the best option.

3) This option is very similar to option 1. If you are selecting a low interest credit card with a variable rate, be sure to find one with a 0% APR introductory rate period so that you can repay as much of your debt as possible within this time.  Typically these offers are followed with low variable rates. Compare these variable rates which follow your introductory period with current variable rates to make sure they measure up accordingly.