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Low Interest vs. 0% APR Credit Cards

0% APR vs. Low Interest Credit Cards...Here's the pros and cons of both types of offers...

Credit cards can be categorized as low interest, 0% APR or both. The best credit cards provide a 0% APR and a low interest rate. But what's better: having a 0% APR, or a low interest rate? Let us show you the pros and cons of both types of offers so you can determine which type is best for your financial situation.

0% APR Credit Cards:

0% APR credit cards use a "teaser" or "intro" rate to attract new customers - and new purchases. For a specified period of time - sometimes 12 months or more - cardholders will avoid interest on new purchases and / or balance transfers. If used properly, consumers can save a ton of money with these types of offers. But be aware, the 0% APR doesn't last forever. And after the intro period ends, the ongoing rate may (or may not) be higher than the average credit card APR.

PROS:
  • Save money on new purchases you can pay off quickly.
  • Save money by transferring existing credit card balances.
  • Carry your debt interest-free by transferring cards regularly.
CONS:
  • 0% APR doesn't last forever!
  • Could cause overspending or misuse of card.
  • Interest charges could compile after intro period ends.
  • May have higher interest rate after intro period.

Low Interest Credit Cards:

Unlike 0% offers, low interest rate credit cards have an upfront, low APR. While this rate may be variable or fixed, the rate isn't an introductory or "teaser" rate that changes after a set period of time. The better your credit is, the better the rate you'll receive. Luckily, many low interest rate credit cards on our site also include a 0% introductory APR too.

PROS:
  • Save money on LONG-TERM charges.
  • Don't have to "switch" credit cards to save money.
  • No surprise rate increases after intro period.
CONS:
  • Don't gain the benefits of paying 0%!
  • Don't save as much on balance transfers and new purchases.
* Calculate how much you can save with our Low Interest Savings Calculator >

The Best of Both Worlds:

A 0% APR can save you tons of money! You can save on new purchases and on balances transfers. But a low interest rate credit card might be better for LONG-TERM charges. Why not take advantage of both types of offers? When you're shopping for your next credit card, try to find an offer with a 0% APR and a low interest rate. Then determine which features are more important to you so you can decide which credit card is right for your personal needs and interests.

* See a complete list of low interest or 0% APR credit cards >

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