Low APR credit

The interest rate is definitely a key factor consumers consider before signing up for a credit card. This is especially true for those people who are carrying balances, or suspect they will be, as a card with a low rate will generate significant savings over the months or years it takes to pay off the balance. Thus, the credit card companies offering MasterCard, Visa and other types of cards, are now competing in terms of their low APR (annual percentage rate) packages.

The huge market for credit card shoppers has also made banks and other companies tie-up with credit card companies so that there are now numerous cards that you could apply for, and with so many different cards available, there are many different interest rates, annual fees and late payment fees.

One such option is Citibank's Dividend Platinum Select card. The offer targets individuals seeking to transfer their balances and earn a reprieve from soaring interest rates - giving the consumer 0% APR for up to 12 months. As an incentive, users of the Citibank card will also be reimbursed for as much as 5% of any cash purchase they make at pharmacies, supermarkets and gas stations and 1% for purchases at all other stores and shops.

American Express also offers 0% APR for initial purchases over a 15-month period with its American Express Blue Card, which features a 3.99% interest rate fixed for the balance of the product. JP Morgan Chase is also offering a cash-back incentive and 0% interest rate for up to 12 months on balance transfers with its Chase Cash Plus Visa.

Of course these rates and special offers are subject to change at any time, so make sure you know the deal before you apply for their credit card. And make sure you read the fine print so you know all costs involved, and penalties should you be late with a monthly payment.

Now if you apply for a credit card with a 0% annual percentage rate, or a low APR credit card for a certain number of months, make sure you know when this rate expires, and try to pay off the balance before this deadline. If you are unable to do so, you will find that the amount of interest that you have to pay each month is sizeable. So also check in advance what your new card rate will be so you can adjust your finances accordingly.