Save Hundreds in Interest with a Low APR Credit Card

Paying to much in interest each month on your Credit Card(s).  A low APR credit card can save you literally over $100 a month depending on the balances you're currently carrying on your credit cards. But is it the right decision to switch to a low or 0% APR credit card? This article will help you make that decision. More specifically we'll discuss exactly what APR is, what to watch out for in the fine print, and who should really be considering a low APR credit card. By the end of this article you should know if a low or zero percent interest credit card is right for you.

What exactly is the APR of a credit card?

APR means Annual percentage interest rate. So when you see 19% APR, that means that particular credit card is going to charge you 19% over the year on your balance. Note that this is not the monthly interest rate, the interest you see charged on your credit card statement each month is a portion of what the total annual cost would be based on your current balance.

NOTE: 0% apr credit cards, don't always stay that way, remember interest rates can go up. When applying for a low APR credit card be sure to read the fine print, and understand what your long term interest rates will be after any introductory offers.

Watch out for the fine print

When applying for a low apr credit card there are a variety of rates that might be described to you. There could be any of the follow:

Introductory APR rate: This is the interest rate you're going to be charged for a set period of time (normally 6 months to a year) as a new customer. The rate will normally go up after this introductory period to what ever the standard APR rate is. Standard APR Rate: This is the interest rate you will be paying on your credit card after the introductory period is over. Note what this APR interest rate is, often on a 0 apr credit card introductory offer, you will see interest rates go to 19% or higher later on. Cash advance APR rate: This is the interest rate you will pay on cash advances taken off of the card. Balance Transfer APR rate: This is the interest rate that you will pay on transferring balances from one of your other credit cards to this new card. Generally you will get a low APR on balance transfers, at least for the introductory period.

The point of this is to watch out for credit cards that may be a low or 0% interest credit cards at first, but after the first several months will sky rocket to 10%, 15%, 19% or higher. Getting a true low apr credit card means to get a low rate for as long as you own the card.

Who should be applying for a low apr credit card?

If you're someone who pays off your balance every month and nevers pays interest then I wouldn't concern yourself to much with find a low interest credit card. Instead you could find a card that offers some rewards, or kick back to you for using it each month. Often these types of rewards cards have a higher interest rate but offer more value if you pay it off every month.

For those of you (like me) who carry a balance on their cards all the time, a low apr credit card is a must. Here are the three scenarios that you must apply for a low or 0% apr card.

Balance Transfer: You have a large balance on one or more cards and are paying big bucks in interest. If so apply for a lower interest credit card, and start paying more of that balance each month instead of interest. You always carry a balance: Similar to a balance transfer, if you always carry a balance don't waste more money then you have to. Applying for a low apr credit card will decrease the amount of interest you'll be charged each month. You need to cut some money out of your month expenses: Credit card interest can be a big expense if you're carrying more then $5000.00 on one or a combination of cards. If you move that balance to a 0% apr credit card you'll save anywhere from $50 - $75 a month in interest fees.

Which Low Apr Credit Card should I apply for?