A low interest or 0% credit card can be a life saver, whether you are looking to get rid of an existing credit card debt or to purchase something expensive. Many of these credit cards offer 0% introductory APR for purchases and/or balance transfers for a certain period of time, so that you can have an easier time paying off a balance or an expensive item.
0% or Low Interest Credit Card Tips
A low interest credit card gives you a low introductory APR period for purchases. These cards are ideal for making big-ticket purchases, because even if you don't pay back your balance for a purchase in full by the due date, you won't pay interest on your balance until the end of the intro APR period.
For example, if you buy a second hand car for $10,000 using a card that has a 0% intro APR period of 15 months for purchases, you won't have to pay interest on those $10,000 of credit until 15 months after you open your new card account. If you pay off the balance in full before then, you basically get an interest-free loan.
Alternatively you can also use a card that has a low ongoing APR and an intro APR for balance transfers. This may be a better choice if you regularly carry a balance on your purchases.
If you already have built up a balance and want to avoid paying interest for your card debt, then a balance transfer credit card is a good choice.
Some credit cards offer low introductory APR periods for both purchases and balance transfers. A card like this lets you save on your balance transfers while taking advantage of a low intro purchase APR.
If you have balances on your old credit cards and you're paying high interest on them, then changing to a card that gives you 0% introductory APR on both purchases and balance transfers is ideal.
But if you don't have a balance that you want to pay off (or at least avoid paying interest on) then a card that has a 0% intro APR for purchases will work just as well.
Some cards offer a low introductory APR for purchases, but not a 0% introductory rate. Unless your credit doesn't let you get a 0% intro APR card (most require excellent credit), or you don't intend to carry a balance, we would recommend that you only consider cards with a 0% introductory APR offer.
How we rate low interest credit cards
Low interest credit cards are rated by GET.com based on the interest savings they offer, among other factors. We look at introductory APR periods on purchases, and ongoing purchase APRs. We rate cards based on the length of the low intro purchase APR period as well as the APR offer during that period. Cards with a 0% introductory purchase APR period will usually receive higher ratings.
Cards that offer low ongoing APR rates for purchases may also receive good ratings. Other factors we take into account when rating cards are annual fees, purchase benefits (like purchase protection and price protection), rewards, travel benefits, other card fees (like foreign transaction fees) and unique card benefits.