Many people looking for a credit card for themselves are simply looking for a credit card with low interest rates. Credit card providers are also advertising low interest credit cards more than any other kind of credit card. However, when you are looking for a credit card, should a low interest credit card be the only credit card on your list? Probably not. For some people, the interest rate or APR may be the most important thing when choosing a credit card. However, this isn’t for everyone. A credit card with a low interest rate is good and should definitely be on your list, but the APR is not the only thing to look at.
Let’s start by understanding what an APR (Annual Percentage Rate) is and what makes it important. The APR is simply the interest rate used to calculate the interest on your credit account balance with your credit card provider. If you pay your credit card bill in full (before the due date), no interest is charged. However, in the case of a partial payment, you will have to pay any interest you owe to the credit card provider. The APR is calculated backwards to get the monthly interest rate and the same rate is applied to your balance to calculate the interest for the applicable period.
This means that those who are not sure if they can pay the full amount every time should definitely look for a credit card with a low interest rate. Low interest credit cards help reduce your total expenses by reducing the amount of interest you pay for your balance. As a result, low interest rate credit cards help to slow down the rate at which your credit card debt builds up. Therefore, as mentioned above, low interest credit cards are definitely important for a specific group of people.
In addition to this group, there are some people who don’t really need a low interest rate credit card. These people can afford (and intend) to pay their credit card bills in full each month. They use credit cards for the convenience and other benefits associated with credit cards. So, it really doesn’t matter to them whether it’s a low or high interest rate credit card.
Therefore, the demand for low interest rate credit cards is felt more by a specific group of people. However, even if you go for a low interest rate credit card, you need to compare various low interest rate credit cards with each other (as opposed to the other benefits they offer) and then choose the best low interest rate credit card for you.
So, first you need to evaluate whether you just need to go for a low interest credit card and then choose the low interest credit card that meets your needs. After all, you won’t be hunting for credit cards every day.