Basically you find two types of credit cardholders.

Person #1

The person who can afford to pay their debt each billing cycle and uses credit for its convenience and the card’s benefits, like airline miles, credits at restaurants, hotels or theme parks, cash back or a certain percentage of spending donated to a designated cause or organization.

The other type of person is one who needs a credit card to purchase items and pay them off over an extended period.

Person #2

Is the most popular cardholder, so credit card companies advertise low interest cards to suit their demands.

All cards give you an annual percentage rate (APR) which gives a standard rate for the interest incurred on the balance you carry. Giving you the APR is mandatory for all credit card companies by the federal “Truth in Lending Act”? to inform consumers. It gives you the ability to compare apples to apples and oranges to oranges when choosing your credit card.

APR is not the only thing you should look for in a low interest rate credit card. As with all types of credit cards, they may have an annual membership fee, stiff penalties for late payments, and the APR being offered may be an introductory rate that lasts for a certain period then, changes to a much higher rate.

After comparing card benefits, your particular need, and the APR you are willing to pay, choosing is a breeze. Making the right choice comes with well-worth investigation. Before making any card selection make sure you read and understand the “Terms and Conditions” of the card.