A:

When it comes to picking out a credit card, there are number of factors to consider. From annual fees to perks like cash back and airplane miles, every credit card account is different. Perhaps the biggest factor consumers should focus on is the card's interest rate.
Expressed as an annual percentage rate (APR), this interest rate is the fee paid for the privilege of borrowing money. Essentially, this fee is the price a person pays for the ability to spend money today that would otherwise take time to accumulate. On the flip side, for the banks doing the lending, that fee/interest compensates you for giving up the ability to spend/invest that money today.

This fee varies based on a number of factors, including credit worthiness, amount of debt already outstanding and type of card issued. However, it's the single most important feature choosing a credit card. Pay too much in interest rate fees and that $4 latte could end up costing you around $12 over time.

According to credit bureau Experian, the national average credit score in the U.S. is around 750 out of a maximum score of 990. That's not too shabby of a score. For the average American, finding a low interest rate credit card shouldn't be too hard. Luckily for you, we've done some of the leg work.

First up is the Citi Simplicity card from Citibank. The card offers a 0% intro APR on purchases for 18 months as well as a 0% intro APR on balance transfers for 18 months. After that first year and change, the variable APR is a low 12.99% for qualified consumers. The Citi Simplicity card also features no penalty interest rate increases when you miss a payment due date, and zero late fees.

For those who like to travel, the Capital One issued Venture Rewards card could be for you. This card offers 0% intro APR on purchases till August 2013. After that, consumers will be subject to a low variable APR of 11.99-19.99% depending on your credit worthiness. The kicker for the card is the amount of airline miles a consumer can accrue. The Venture card allows users to redeem miles for airline tickets, hotel rooms, car rentals and other travel needs. Additionally, there is no limit on the amount of miles you can earn and those miles don't feature an expiration date. Currently, the card gives you 10,000 bonus miles once you spend $1,000 in the first three months. Consumers earn 1.25 miles per dollar on every purchase.

For those looking for cash-back rewards, the Discover More card, issued by Discover Financial, is a great choice. The card offers a 0% intro APR on purchases/balance transfers for 15 months and a low variable APR of 10.99% after that. The card provides 5% cash back on quarterly rotating categories. Shopping online through Discover.com will also net you up to 20% in cash-back bonus rewards at popular retailers.

RELATED FAQS
  1. What are some common models that practitioners use in quantitative analysis of equity ...

    Understand which aspects of a credit card agreement make accepting a new credit card offer a good deal or one that should ... Read Answer >>
  2. What are some signs my credit card's annual fee is too high?

    Learn about annual credit card fees, interest rates, introductory rates, balance transfers and member programs available ... Read Answer >>
  3. Do lenders offer floating APRs?

    Learn about credit cards with floating, variable and fixed APRs. Explore introductory rates offered by two leading credit ... Read Answer >>
  4. What are some examples of common credit card reward program benefits?

    Learn about different benefits available to credit card holders including cash back, air travel miles, introductory rates, ... Read Answer >>
  5. How can I avoid paying unnecessary credit card fees?

    Examine different strategies for reducing fees on credit cards. Learn about the Consumer Financial Protection Bureau and ... Read Answer >>
  6. How do secured credit cards help me build my credit score?

    Find out how secured credit cards function and why they can be very useful for those looking to build or rebuild their credit ... Read Answer >>
Related Articles
  1. Credit & Loans

    Review: Discover it Miles Card

    This rewards card could be one of the most generous yet. See if it makes sense for you.
  2. Credit & Loans

    Credit Card Review: Discover it Miles

    Understand what makes a credit card valuable and possible drawbacks; learn about the Discover it Miles card and how it may benefit a consumer.
  3. Credit & Loans

    Cash Back, Miles or 0% APR: Comparing Card Perks

    Consumers have a lot of choice these days when it comes to credit card rewards, including cash back, airline miles and introductory periods of 0% APR.
  4. Credit & Loans

    Credit Cards Offering The Most Airline Miles

    Besides one mile for every dollar spent on purchases, you can rack up thousands more – up to 50,000 – thanks to these cards' intro offers and bonus points.
  5. Credit & Loans

    5 New Ways Credit Card Companies Are Wooing New Card Holders

    With new laws, credit card companies are forced to get creative to attract new customers.
  6. Credit & Loans

    Capital One Cards: VentureOne Vs. Venture Rewards

    Which Capital One rewards credit card offers the best deal for you?
  7. Credit & Loans

    Why Card-Specific Discounts Don't Work

    There is a healthy way to use store credit and debit cards. Read on to find out how.
  8. Credit & Loans

    Find The Best Cash Back Credit Cards

    Cash back credit cards let you spend your rewards on whatever you choose – rather than limiting you to travel benefits or other specialized bonuses.
  9. Credit & Loans

    Best Credit Cards For Travel Deals

    A wide range of rewards credit cards are available for consumers to use toward airfare, hotel bills, rental cars and more.
  10. Credit & Loans

    Favorite Rewards Credit Cards for 2016

    These credit card companies take different approaches to reward you for making purchases you'd have made anyway. The key is never to pay interest.
RELATED TERMS
  1. Terms And Conditions (Credit Card)

    A formal statement of the rules and guidelines that govern the ...
  2. Credit Card

    A card issued by a financial company giving the holder an option ...
  3. Credit Card Balance Transfer

    The transfer of all outstanding balances from one credit card ...
  4. Upfront Pricing

    The interest rates and fees stated in a credit card agreement ...
  5. Secured Credit Card

    A type of credit card that is backed by a savings account used ...
  6. Plain Vanilla Card

    A basic credit card with no special features or perks and no ...
Trading Center