Save w/ Lower APR Credit Card

Here's examples of how you can save with a low APR...

The easiest way to lower the cost of using credit cards is with a lower APR. Taking advantage of low interest rate and 0% intro offers is not only smart, but it will save you a ton of money! Of course, a higher credit score will result in lower rates and bigger savings. But even a small decrease in your APR can have a significant impact on how much you pay over time. Here's how:

Save with a Lower APR

Over the long-term, lowering your APR can have a big impact on how much you pay in interest charges. Even if your rate only drops a few percentage points, the savings will add up over time. For example, if you carry a balance of $6000 at an interest rate of 15.99%, the annual cost will be $899.40:

OLD CARD: $6,000 x 14.99% = $899.40 per year

But if you transferred the balance to a lower APR credit card at 10.99%, you'd save 4% on interest charges. That would mean $240 in savings per year:

NEW CARD: $6,000 x 10.99% = $659.40 per year

After several years the savings could really add up! During that time you could be applying the extra funds to pay down your existing debt even quicker-- or, you could use it to create more available cash and reduce new charges.

Save with a 0% APR

Another money saving option is a 0% APR credit card. Although the savings only last for a specified period of time, or 'introductory period', they can be very significant. Consider a balance of $6,000 balance at an APR of 10.99%.

OLD CARD: $6,000 x 14.99% = $899.40 per year

Now consider a 0% APR which lasts for 12 months:

NEW CARD: $6,000 x 0.00% = $ 0.00 after 1st year

You could save almost a thousand dollars over the course of a year with a 0% APR! Think about what you could do with an extra $1000...

Low APR vs. 0% APR

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With so many different offers, you need to analyze every situation to see how you can save the most money. What if the introductory offer is less than one year and the ongoing APR is higher? Here's your option: a 9.99% fixed rate or a 0% introductory rate for 6 months with a fixed rate after of 13.99%:

LOW APR CARD:
$6,000 x 10.99% = $899.40 per year
0% APR CARD:
$6,000 x 0.00% = $0.00 for 6 months
$6,000 x 13.99%÷2 = $419.70 for 6 months

When you do the math, the results speak for themselves. Even though the APR is higher after 6 month, the initial savings created by using a 0% will payoff (in the short-term) over a lower APR. In this situation you'd save almost $500!

Your Best Bet

Always take advantage of 0% APR credit card deals that have the longest introductory period and with the lowest APR after it expires. This way, you can benefit from both types of offers and save the most money over time. Luckily, most low APR credit cards on our site have a 0% APR as well.

* See a complete list of low APR and 0% APR credit cards >