There are two types of costs, associated with the credit card use: the annual fee and the interest.
If you want to enjoy an inexpensive credit on your card, you should keep in mind both parts of the equation.
Cards rewards, cash back, and bonuses can also make your credit card use economically sound, but these are not for the cost-conscious customers.
Thanks to the fierce competition between major banks, now you can find no annual fee affordable credit card for any need - low APR, rewards, cash back, you name it.
The only real reason to settle for a card that charges an annual fee, is if you plan a large purchase on a card that will unlock the card’s sign up bonus, which can be as high as $400-$500 and will cover an annual fee.
If you tend to carry a balance on a card, your best choice is the lowest APR card available. With the average APR between 13-15%, everything around 10% sounds like a good deal.
One of our favorite options is Simmons bank cards with the APR as low as 7.25%. The main problem of this product is that the approval process takes too long and the requirements for are strict – more like a mortgage application than a typical credit card.
Barclaycard Ring is another choice, the card lacks fancy bonuses and rewards but shines in the APR department with its 8% ongoing APR.
Excellent Credit Required - Applicants that do not have excellent credit will not be approved
Low 8% variable standard purchase APR and platinum benefits
No balance transfer fee for balances transferred in response to this online offer
No Annual Fee
Additionally, both cards charge no annual fee, making the choice even better for an economical customer.
Mostly, cards with the low APR are available for customers with good to excellent credit. If your credit is not quite excellent yet, you will probably have a hard time applying for low APR offers. It is likely that you will get an offer with a higher APR within an advertised range.
If you just need a break from paying interest to gather your strength and pay it off, your best choice is a 0% introductory APR offer.
There are many of such products - some offer intro APR only on purchases, but most will get you both introductory 0% purchase APR and 0% balance transfer APR on your first balance transfer.
Do not forget that there is usually a 3% balance transfer fee, which can make a significant hole in the budget if you have a big balance.
The longest introductory period available today is offered by Citi Simplicity or Citi Diamond Preferred with 18 months 0% APR. Another good offer is Chase Slate with 12 months – this card is available for people with average credit.
Ongoing APR after the introductory period ends is not the greatest on these cards, so it is a good idea to pay off the balance during the intro period.
Credit card loan is not the cheapest form of debt, so it is a good idea not to carry a balance for a long period. If you have financial necessities, it is often rational to go for another form of loan – students loans, car loans, and other specialized products are usually much easier to maintain.