Best credit cards with low APR: Top 4 picks you should know

Credit card debt with high rates can quickly become a nightmare. A credit card offering a low APR may save the day by reducing your interest payments. Here are the best low APR credit cards and their features to guide you in making the best decision.

Understanding credit cards

Banks, among others, issue credit cards as financial instruments whereby you borrow money to any amount as allowed by a credit card. You use it for withdrawing money or as a mode of purchase. A statement showing your transaction and balance outstanding will be made available at the end of each collection period.

Advantages of credit cards with low APR

• Annual cost savings: Many low APR credit cards offer a lower annual cost compared to other credit cards. In some instances, the annual charge may even be waived if you fulfil specific expenditure criteria.
• Lesser interest charges: With these cards having lower annual percentage rates, saving money on interest charges will also be easier even after the promotional period is over.
• Advantage of consolidating debt: With low APR credit cards, you can pay off current credit card debt by cutting down the interest expense and allowing a more significant part of your payment to go towards the principal.

Disadvantages of credit cards with low APR

• Limited benefits: Low APR credit cards rarely offer significant benefits such as discounts, air miles, or cashback.
• Eligibility requirements: Normally, only those with excellent credit ratings qualify for these cards. Generally, a history of responsible spending and timely payments is required.
• Assess transfer fees: Although credit cards can help in debt consolidation, one should assess the costs and potential savings since transferring balances regularly incurs fees.

Top credit card with low APR

Source: Paisa Bazaar, rates as of 09th December, 2024

Key features of best credit card with low APR

1. IDFC FIRST Wealth credit card

1. Free card for life.
2. Benefits for shopping, dining, and entertainment.
3. Good for anybody looking for a single card with no annual fee.

2. Axis Bank Burgundy Private credit card

1. Premium privileges such as lounge access and free subscription.
2. No interest on foreign exchange transactions.
3. Perfect for those who value luxury and lifestyle benefits.

3. HDFC Infinia Credit Card Metal Edition

1. Perfect for rewards in the dining, shopping, leisure, and travel space.
2. Designed for high rollers and frequent travellers.

4. HDFC Diners Club Black credit card

1. Very high reward rate (3.33%).
2. Low international exchange markup, and lounge access is complimentary.
3. It is a good choice for more frequent travellers and big spenders.

In conclusion, selecting the right low APR credit card can greatly improve your ability to manage credit card debt. With a range of factors such as APR, annual fees, and rewards, an informed decision demands a comparison of cards.

However, though a low annual percentage rate will certainly help to keep interest costs low, using it the right way over a period of time means managing spending, making timely payments, and getting into good habits in regards to handling finances.

(Note: Using a credit card carries its own set of risks)