Zero Interest Cards

The best deal you can find in the market is, of course, the zero interest credit card. Before you sign up for the card make sure to read through the terms and conditions in detail. Typically, zero or low interest credit cards have a specific initial period over which the special interest rate applies. Keeping yourself informed of this time limit helps ensure that you do not overshoot your low interest period and run up huge bills. Also check with the issuer of the low interest credit cards if the special rate applies on both balance transfers and purchases.

No Annual Fee Credit Cards

In addition to an attractive interest rate, many low interest credit cards also come with zero annual fees. The annual fee is the charge you usually pay to the issuer in exchange for using his card. There are now a number of issuers who no longer charge this fee in a bid to make their credit card offerings more attractive to potential customers. Make sure you are specifying zero annual fee when you are searching for low interest credit cards online.

Attractive Benefits

Many issuers also come up with some great extra benefits when you sign up for their cards. These benefits could take the form of warranties for purchases that you make with the card. If you will be using your low interest credit cards extensively for shopping then these warranty cards are a good deal for you. Many low interest credit cards also come with auto rental insurance or travel accident insurance and roadside assistance. If you are on the move quite a lot then finding a card that offers these benefits is in your best interests.

Cards with Rewards Programs

You can also find a good many low interest credit cards in the market that come with some attractive rewards programs. With these, you could earn points whenever you make purchases with your card or pay bills with it. At the end of a pre-specified time or when you accumulate enough points you can exchange them for rewards or, at times, even cash. The rewards may be vacation trips, discounts, gifts, gift certificates or a range of other things. Some cards may give you rewards when you use them for specific expenses like airline tickets or medicines. You could get a discounted price on such purchases with these cards that will shear off your bill amount quite significantly.
 
Compare different low interest credit cards from various issuers before you sign up for one. This is the easiest way to ensure that you are indeed getting the best possible deal with your credit card.

Gas Rewards/ Rebate Credit Cards

If gas is your single biggest expense every month then getting a gas rewards/ rebate credit card is a good option for you. These cards can earn you some cash back in the form of discounts on gas prices which is bound to lighten the load on your wallet every time you have to fuel up. Over and above this discount, many gas rebate low interest rate credit cards come with additional rewards programs offering free gifts or vacation trips. Otherwise, you might be able to accumulate points each time that you use the card at a gas station. When you accumulate enough points you can redeem it for gifts or merchandise or even cash.

Airline Rewards Credit Cards

Airline rewards low interest rate credit cards are ideal for those who are frequent fliers. Most often these cards come with a points based system. When you purchase your air tickets with this card your account is credited with points. These points can be redeemed for free air tickets once you have a certain minimum amount. Make sure you choose the right kind to match your regular travel lifestyle. Some cards allow you to use the points earned on any airline while others give you bonuses for using specific airlines. If you have a specific airline that you prefer to travel with, you could even get an airline co-sponsored credit card that you can use for purchasing their tickets.

Balance Transfer Credit Cards

For those who would like to consolidate all their debts into a single low interest credit card, the right choice is a balance transfer card. With these cards you can simply move all your outstanding balances to your new card without getting hit with huge fees. Plus you can repay your consolidated debt in an easier way thanks to the manageable interest rate on your new low interest credit cards.

General Rewards Credit Cards

If you are not sure what kind of rewards you would find most useful then you can opt for general rewards low interest rate credit cards. With these cards you earn points that you can exchange for a variety of privileges such as discounts on airline fees or hotel stays. You can also opt for cash backs or reduced rates on specific purchases. Some general rewards low interest rate credit cards also let you take home special gifts, gift vouchers or valuable merchandise completely free of cost. If you would like to choose your own rewards at the time when you accumulate enough points these cards are the best choice for you.

Two Types of Interest Rates

Credit cards typically come with either of two types of interest rates- fixed or variable. The fixed rate does not fluctuate while the variable rate does.

Fixed Rate Credit Cards

The annual percentage rate or APR that is charged on these credit cards with low interest rates remains the same at all times. This rate is not based on the U.S. Prime Rate or the LIBOR rate and does not move in line with them. However, the rate may increase if you delay payments or exceed your credit limits.

The 9.9% basic credit cards are some of the most popular fixed rate credit cards with low interest rates that you will still find in the market today. However, not many issuers offer variants of these cards since variable rate options are preferred by customers.

Variable Rate Credit Cards

A variable rate card comes with an APR that is linked to the U.S. Prime Rate or LIBOR rate. When these change, the rate on the credit card changes too. The issuer usually adds a margin to the rate index to determine the APR on your variable rate credit cards with low interest rates. When the U.S. Prime Rate/ LIBOR rate moves, the card’s margin is added to it to arrive at the new APR payable. Since these base rates move often, your credit card APR will also keep fluctuating. Issuers generally review the rate on a monthly basis and tweak the credit card APR accordingly.

Introductory Rates

There is another aspect to consider when you are comparing interest rates of various cards. This is the introductory rate. Since there is immense competition in the credit cards industry, many issuers come up with attractive introductory rates that will last for a limited initial period. On some cards this period may be a month while on others the special rate lasts up to a year. If your credit cards with low interest rates have an introductory special rate, you will be able to make purchases during the specified period at the lower APR. It is very important for you to understand the terms of such introductory offers fully before you start making your purchases so that you can avoid running up huge bills beyond the pre-specified inaugural period.

Choosing your credit cards with low interest rates can be a confusing affair unless you know enough about APRs and payment terms to make a judicious comparison between various offers. Pick the one that offers the best rate as well as attractive rewards to ensure that you get the very best deal in the market.