Low fixed interest credit cards save you cash by lowering the total cost of borrowing: you are more likely to pay back more of your debt over the long term when you are saving money. A card with an 0% introductory APR term will save you the maximum on interest over the short term, if you are disciplined. These zero rate introductory offers are particularly appealing in bad economic times. In fact, you may find yourself tempted to cancel the card before its current introductory period is over. This would mean incurring further interest charges!
It is a good idea not to get caught out looking for credit cards with no annual fee or low APR. Annual fees and APR values vary greatly between credit cards. A good APR means lower payments over the long term. If the APR sounds too good to be true, it probably is. Look for a credit card that has a low annual fee and low APR. The longer you pay interest at a low APR, the more you will pay off in principal over time, reducing your actual cost of borrowing.
Always make purchases online using a credit card that has an apr value lower than your borrowing limit. You will make small purchases every month – you only need to make purchases online using a credit card to cover the costs of that small purchase. Even if you have a credit card with an extremely low APR, the APR may rise in time. The APR figure shown as a percentage rate on a statement may change, so check the APR value before making any online purchase. If the APR goes up when you make the purchase, it's because the cost of borrowing has increased.
To reduce your overall cost of borrowing, it is essential that you get as many years of good experience on your credit cards as possible. A good rule is to always pay the entire balance every month (other wise known as 'extended payment history'). Also, keep your balances low, as high levels of debt mean a high level of interest paid over time. If you want to get the most out of your credit card, make purchases on an every two or three month cycle. The easiest way to find low interest credit cards is to search online, where you will usually find low APR credit cards that are suited to your requirements.
Low fixed interest rate credit cards are available from many reputable banks and financial institutions, but they are often not advertised openly. It is important to shop around for the best low APR credit cards for you and your circumstances. You should look for the longest interest free period (the minimum payment should not be more than 25% of the total amount due), the lowest regular interest rate and whether any fees and charges such as balance transfer fees are included.
It is also important to understand how the APR (annual percentage rate) works. Generally a good APR credit card will have a lower interest rate than a high APR credit card, because the interest rate applied to your outstanding balance will be less. As the name suggests, a good APR credit card will give you a lower APR value.
If you want to get the best APR possible then you should make purchases online using your credit card in order to get the lowest APR. When you purchase something online using your credit card, the company will deduct the total price of the item from your outstanding balance. This means that if you only make purchases online using your credit card you will only be paying the cost of the item that you bought. When you do make purchases online using your credit card, make sure you know what the APR is before you enter your PIN number at the checkout.
One of the most important things to know about low fixed interest credit cards is to make sure you read all of the terms and conditions associated with the card very carefully. Many people sign up for a card just to start spending, and when they read the fine print they find that they cannot use the card for a certain thing. These types of tricks are used to increase the cardholder's bill. If you are going to be carrying a balance on your card regularly it is a good idea to get a card with an introductory low fixed interest rate. If you cannot pay off the balance within the introductory period then you should call your card provider and ask them for a transfer to a low interest card.