 By ASAP Credit Card - Copyright © 2008
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 current 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.
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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.
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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.
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CONS:
- Don't
gain the benefits of paying 0%!
- Don't save
as much on balance transfers and new purchases.
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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.
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See a complete list of low interest or 0% APR credit cards >
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