In the modern era, where interest rates are spiraling sky high, finding the right low APR credit card is comparable to finding an oasis in a desert. The low APR credit card can prove to be very beneficial for you. Though there are very few people who qualify for these credit cards, if you are one among the lucky few, you can be sure to turn your finances around. Low APR credit cards can be useful in ways more than one. Let us take a quick look at how you stand to benefit financially.
Firstly, low APR credit cards offer single digit rate of interest. This by itself is a boon to any person who has the card in their wallet. You can make purchases using the card without the apprehension of being charged high interest. If the low APR card is offering you an extended grace period, you can consider paying off the amount due on the card completely without incurring any interest. Even if you are not able to pay the entire amount, you can pay as much as you can and pay the remaining balance over the next few months with only a small amount of interest.
Low APR credit cards help you pay off your balances faster. Hence, these are the right solutions for people who have multiple loans or credit cards with outstanding balances. If you are lucky enough to get the low APR credit card, do not miss the opportunity of getting balance transfers on the card as well. You can consolidate all the outstanding balances you have on various loans and cards and request the lender to transfer all of them onto the low APR cards. This will minimize the interest rate you pay to various lenders each month. You will only have to pay a fixed amount each month on the card to pay off the outstanding balances. This will in turn save you hundreds of dollars each month.
Low APR credit cards also have the ability to help you repair your credit history. Since you can opt for balance transfers on these cards, you can transfer the balances from high interest cards to the low APR card and close the accounts on cards that charge you an arm and a leg. The less number of credit cards in your wallet, the better your chances of improving your credit score. A healthy credit score results in a secure financial life.