Whatever your reason for needing a low interest credit card, there are important things to take into consideration. While you may not want to get into debt, it is good to have a card to help establish credit as well as to keep on hand for emergencies. Choosing the right card can make the difference between long-term debt and short-term loan. You want to know the different facts that make a card a good line of credit for you.

One of the first things you need to consider is the total APR. This stands for annual percentage rate. This rate is added each month, accruing with your outstanding balance. Keep in mind that annual percentage rates are determined by the credit card company based on several factors. Your payment history and credit score can affect your percentage rate, with a range from 5% up to almost 30%. This makes a huge difference once you accumulate a large balance.

As the competition has grown fiercer between credit card companies, many are now offering an introductory period. This can range from about 90 days up to one year of lower or 0% interest for new or transferred balances. Beware of these offers. While you can still benefit from them, you must read the complete terms. Find out what the interest rate will be once the introductory period is over, how much interest is on new purchases versus balance transfers, and whether the rate is fixed or variable. You will also want to find out what kind of penalties you will owe and whether the special interest rate is forfeited if you pay late.

The best advice for a new card is to find a good combination. Choose a low APR credit card with no introductory period. Experts advise to find a fixed APR as well. With this combination, you are sure to have a good rate that will last. If a card seems too good to be true, it may be. While the 0% offers are great, no one wants the accrued interest if it doesn’t get paid off in time. Wouldn’t you rather be sure you had affordable payments?

Keep the most of your money in your pocket that you can. Use your card wisely to help build a good credit history, and keep in mind that with better credit, you might be able to shop around for a lower rate in a year or so even if you don’t qualify now. Credit card companies will compete to keep your business, so make sure to shop around from time to time to make sure you are getting the best deal.

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