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Credit cards are something we see many people using on a daily basis. Irrespective of needs, people have a credit card for various reasons. Some consider it as an emergency fund; others believe it to be handy on occasions of travel while still others feel that without credit cards life gets very difficult.

There are a lot of different kinds of cards in the market and you may have often seen a person slip out their wallet to pay and out pops an array of cards. What sort of a card you can get will depend on your credit score. Often first time users may not be eligible to get a low interest card or one with no annual fees. If you are starting off, it would be ideal to go for a card with a low credit limit. Take care to make your payments on time every month and close your outstanding balances.

When you have built up a fairly good credit history in this way, you can work on getting a better card that offers you lower interest rates. In many cases it is people who have a good credit record that can get such cards. These benefits are accorded to them as they pay on time and close their outstanding balance keeping up a good credit record. This allows them to have a good score and standing with the banks and to bargain on the interest rates.

When there are lowered interest rates given, the spending also increases as they can afford to pay off the amount more easily. However for someone who is starting off with credit cards, it is a catch 22 situation. They have to first have a credit history and maintain it in good stead to receive a good credit card offer.

Low APR cards are also reserved for customers who are high end and with the bank since many years. Having seen their financial records and knowing their backgrounds well the bank would be more willing to extend credit to them at a lowered interest rate. Often with reward cards and other benefits there will be no lowered interest rates. It is important to be able to have a good income and records to be eligible for such cards. These cards may also come with no annual fee for customers who have a high credit score that is well above 750. With careful planning and use, a person can easily acquire such a card.