Credit Cards Strategic

Low Interest Credit Card Comparison Checklist

A credit card can sometimes be like a double-edged sword—it cuts both ways. It can be very useful, especially when making purchases even when you don’t have any cash on you. Likewise, credit cards can also hurt your finances significantly even with the supposed “low interest” variety. So if you’re on a hunt for a credit card, be sure to go over our checklist of credit card features to compare, so that you can choose the right one for you.

Feature #1: Interest rate

When looking over a credit card’s features, keep an eye out for the APR or annual percentage rate; this encompasses the card’s interest rate and annual fee. Always look for the lowest APR because it would greatly influence how much you would pay every month, especially if you don’t settle the entire balance immediately. APR can either be fixed or variable rate. A fixed-rate card means the APR is mostly unchanging, except when you go over the limit or pay late.

The only time a card’s interest rate wouldn’t matter is if you pay its balance in full before the cut-off date every month.

Feature #2: "Teaser" or introductory rate

Credit card companies provide low introductory rates to lure new customers like you. The lesson: Don’t get enamoured with zero per cent rates because they’re only good for a limited amount of time (usually the card’s first six to nine months).

Only consider introductory rates when you plan to make a balance transfer or have a big purchase planned. Why? That’s because the teaser rate would be the effective interest rate when you pass on the balance from your old card to the new one. Furthermore, a low rate would give you a nice discount for your big purchase. Just make sure you pay off the balance before the honeymoon period ends.

Feature #3: Annual fee

The annual fee shouldn’t always be a deciding factor when choosing that low interest credit card because you might miss out on high credit limits, timely statements and low interest...