A good low APR credit card is like a diamond in the rough — you spend a lot of time searching for it, but once you find it, you treasure it forever. For many cards that boast low APR, reality sets in once the probationary period fades.
Credit cards offer misleading introductory offers and teaser rates boasting very low APRs, minimal interest rates and no annual fees. During the first 12 month, low rates stay that way, but after a year, consumers may be surprised to find high APR rates and other miscellaneous fees on their bill, as consumers are now obligated to pay the highest standard APR rates in decades.
The national average for APR is 14.9 percent, according to Credit-Land.com. This rate is the highest that it has been since 2007. So, while sifting through all the introductory offers and low interest rates, it’s important to find a low APR card that suits your needs.
Here are some things to look for when picking a low APR credit card.
What’s the Interest Rate?
There is never a zero interest rate. I repeat; your interest rate will never be zero. It’s important to not only know what the interest rate is, but also when you are required to pay that interest rate. The general rule is the lower the interest rate, the better the credit the applicant must possess.
What About an Annual Fee?
Check out if the card you’re interested in requires you to pay an annual fee. Annual fees are like low APR introductory offers— they may be waived for the first 12 months, so make sure to look into it and to ask the appropriate questions. There are many credit cards with annual fees, but if you can avoid dishing out this extra bit of money, you should.
Is it a rewards card?
Find out if there are any fun perks associated with the card, such as frequent flyer miles, access to a rewards mall or cash back. According to the report, the APR rate for cash back cards has increased more than 1.5 percent in only six months. Rewards card tend to have higher APRs than traditional cards. “The most user-friendly cards seem to have the highest APR rates… mainly cash back and rewards cards. These two types of cards generate a lot of consumer traffic and also have a very high APR,” a Credit-Land representative said.
When shopping around for a low APR credit card, look for a card takes care of your needs from the day you open the account. The $50 cash back, or those 15,000 free introductory frequent flyer mileswill notpay for the excessive interest rates that you will accrue in 365-days-time.
Some Low APR Credit Cards:
CitiBank Platinum Master Card Select – APR ranges for 11.99 to 20.99%, depending on credit score.
Capital One Platinum Prestige Credit Card – 10.9 – 18.9% APR
HSBC Bank Nevada Household Bank Rewards Card – 19.90% APR