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Step 1
Inspect the various prequalified credit card offers you receive by mail, contact your bank or go online to a site like CreditCards to find low-interest cards (see Resources below).
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Step 2
Learn all the ins and outs about the terms and conditions of each offer, including the fine print and any triggers that can activate a higher interest rate. Find out when the so-called "go-to" interest rate kicks in--this is the rate you'll pay on purchases after the low introductory rate expires. Also, some low- or zero-rate introductory offers will automatically switch to the go-to rate if you're late on or miss a payment.
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Step 3
Take extra charges like annual fees, over-limit charges and late payment charges into account when calculating which offer presents the best overall value. In some cases, a card with a higher APR but no annual fee can actually save you money over a card with a low APR that levies an annual fee.
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Step 1
Improve your credit before you apply for a card with a low fixed APR, especially if you plan to request a high credit limit or if you seek a card that doesn't charge an annual fee. Many times, low fixed-rate APR cards add a yearly membership charge on your account to recoup some of the money they lose on the lower interest rate. The best terms--low interest rates, high credit limits and no fees--are reserved for consumers with the highest credit ratings.
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Step 2
Be careful when evaluating the various offers you get and cards you qualify for--many of them come with terms attached that can send the low APR skyrocketing. Some cards reserve the right to raise your interest rate simply by providing 15 or 30 days' written notice. Others have terms and conditions that cause a higher interest rate (much higher, usually) to kick in if you miss a payment or exceed a certain balance.
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Step 3
Consider cards with low variable interest rates as an alternative to low fixed-rate cards. These cards tie their interest rates to key indexes like the prime rate and can be a money-saving alternative during periods when interest rates are falling.
