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A lot of credit card holders who are having a bad credit must be wondering what they should and which card they should adopt in order to improve their credit history. They must understand that credit cards, no matter how good they are, do not wield miracles and at the end of the day, it is the cardholder, who has to show commitment and dedication to improve the credit history through consistent payments.
The first step however, is to get rid of the high outstanding balance, which is where two types of cards play an important role. These are the balance transfer credit cards and the low APR credit cards. These are primarily different from each other on the basis of the incentive they are offering to credit card holders with a high outstanding balance. The balance transfer offers usually provide a 0% interest during the introductory period, after which, the rate is hiked to a regular standard. This is ideal for cardholders who have lower credit card debt and would want to repay it back before the end of the introductory period.
One the other hand, the low APR credit cards are ideal for those card holders who have a high outstanding balance and are therefore not sure if they can repay the debt within the end of an introductory period lasting 12 – 15 months. Instead, the low APR credit cards offers customers very low interest rates on their outstanding balances which means they can plan the repayment over a much longer time period than would be possible in case of a balance transfer offer. The major benefit is that customers don’t have to constantly worry about returning back to the regular rate where huge amounts of interest are piled up on top of the existing debt. The low APR credit cards usually are ideal for all those customers who usually have a revolving debt and don’t believe in the concept of repaying every month. In the long term, cardholders with revolving debt pay a lot in interests. This substantial amount can be greatly reduced if one goes for low APR credit cards; the interest comes down two notches. It allows quicker repayment of the debt, as the minimum payment would cover a greater part of the debt rather than being negated by the high interests.