One of the first things that most people check when looking for a credit card is the APR - the annual percentage rate. This figure is the percentage of your balance that you'll pay in interest, expressed as a yearly percentage. In general, when people refer to low interest credit cards, they mean a credit card with an APR that is lower than the standard rates charged by most credit cards.
That figure can vary, depending on the prevailing interest rates. It's a generally accepted rule of thumb that the interest rates on credit cards will be higher than those for most other types of loans. Currently, the average advertised credit card carries an interest rate of about 12%. It's not unusual for cards to carry interest rates as high as 20%, and if the account holder has made late payments or missed payments, that rate can climb above 29%.
Your credit history is one of the biggest factors in deciding the interest rate that you'll pay for your credit cards. Interest rates are determined by the issuing card company when they approve your application for a credit card. If your credit score is high, you'll be offered a credit card at a low interest rate - generally the one that you see in the adverts. If you've had problems with your credit in the near past, they'll likely offer you a card with a higher interest rate than their advertised one.
A poor credit history doesn't mean that you won't qualify for a lower interest rate on your credit cards. If you take the time to compare credit cards online, you'll be able to find those that offer low interest rates. On many online credit card comparison sites, you'll be able to apply for instant credit card approval. If you qualify for their lowest interest rates, you'll know within minutes.
