Is a Low Interest Credit Card Right for You?

by : Art Taylor

The credit card companies also advertise low interest credit cards considerably more that any other kind of credit card. Still, it is important to ask yourself, when applying for a credit card, should a low interest credit card be the only card to shop for when searching for a credit card? In many cases, the low interest credit card is exactly what is needed, however, that is not true for all credit card seekers, though it still is a good plan to have a low interest card as a handy backup financial tool for emergency purchases and cash advances.

Let us endeavor to understand what is important about theAPR (annual percentage rate). APR is the interest rate that credit card issuers use, to calculate the amount of money,they are going to bill you, for using your credit card and carrying an unpaid monthly balance. If you make purchases or a cash advance and owe money on your credit card at your monthly credit card bill due date, you will have to pay the credit card issuers the amount you borrowed, in purchases or cash advances, plus the interest which the card issuers have applied to your account, on a monthly basis. You pay no interest amount if you pay in full, your account's dollar balance, by the credit card bill's monthly due date.

So, as you can see, people who are not able to pay their full balance monthly, should probably seek a low interest credit card. By using a low interest credit card, users of the card will save money by paying a decreased interest amount, over the time period that they carry a positive credit card balance. Saving of money using a low interest credit card makes that type of card important to people who intend to carry a monthly balance on their credit card.

There are other groups of people who don't really need a low interest credit card. These people pay their credit card bill in full every month. They primarily use a credit card for convenience and other card benefits, i.e. cash back, travel rewards, purchase discounts and so on. So,if it is a low interest credit card or high interest card it does not matter much to them.

The need for a low interest credit card is more necessary for people who intend to carry a monthly balance. Still those people should compare the various low interest credit cards to determine which card is the best to fulfill their financial needs.

There is a need to evaluate whether you need a low interest credit card or not. If you find that you do want or need a low interest credit card, make sure you choose the one that is right for you. Choosing the right credit card today, may save you a great deal of money on future card purchases and cash advances.