Low Interest Credit Cards (Low APR)
Low interest credit cards offer a reasonable way for some users of credit cards to reduce their potential for rising debt. While it is certainly not the best way to use credit cards, many people do use them as a line of credit rather than an alternative funding option. This will normally lead to the accumulation of interest, making low interest credit cards very handy.
If you don't use your credit card on a frequent basis or repay your balance within the interest free period on purchases, then you are unlikely to benefit from low interest credit cards. Unfortunately, low interest credit cards charge fairly high annual fees for what you get, as the issuers need to cover some of the difference in what they could make from you with higher interest credit cards. If you rarely accumulate interest on your credit card purchases, then you will be better off with a credit card that focuses on a low annual fee or a rewards program as these will offer you better value.
For those who do find that interest is commonly charged on their purchases due to not being able to make full repayments, low interest credit cards can help substantially. It is important to work out how much interest you pay on average each year before deciding on low interest credit cards. This will allow you to decide whether the savings you make will be worth the higher annual fees. If you find you will make a saving, then you may want to consider one of our great low interest credit cards.