If you carry a balance, or plan to carry a balance, beyond the grace period on your credit card each month then you will have to pay interest charges.  The best way to save money on interest is by having a low APR or low interest rate on your credit card.  A lower rate will will help reduce the minimum monthly payment.

The lowest rate possible is obviously 0%.  There are 0 interest credit cards out there but the 0% rate will only last for a short introductory period.  It is vitally important that you look beyond the “introductory rate” to determine what your APR will be for purchases, transfers and cash advances(these interest rates can all be different for the same credit card).  If you have a high balance on your credit card then a low APR will be the fastest way to save money.

If you are looking to try and pay off your credit card debt, transferring your balance to a low APR may be a great start.  You will save money each month which you can apply to the principle balance, reducing your credit balance even quicker.  All major credit card companies off low APR credit cards.  There are always “catches” to these offers so be sure to read the terms of the credit card carefully, understand the introductory APR time period, know that there can be flat fees for special deal credit cards and familiarize yourself with the “fine print” before completing an application.

Great Options To Look For

  • 0% Introductory Cards followed by Low APR – The 0% introductory period gives you a set amount of months which you can use to pay off as much of your debt as possible without wasting any money on interest.  Following the 0% intro period with a low APR will help you save money on the remaining balance of your credit cards.
  • Lowest APR Possible - Sometimes the 0 interest credit cards have fees involved which may not make it worth using.  In this case look for the lowest APR credit card you can qualify for.  If you have a credit card rate of 19% now and can transfer that balance to a card that has a 12% interest rate you will save money each month.
  • Reduce Debt By Applying Savings – If it is your goal to reduce your debt load, then anytime you restructure and save money each month it is a wise practice to apply that savings to the principle balance of the credit card.  Applying extra payments to the principle balance of your credit card will help quickly reduce the balance.

See Our Low APR Credit Cards for 2011

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