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If you prefer using plastic over cash, you should be using a card that rewards you with low rates and rewards.
While credit cards are not my preferred means of spending, if you are going to go with plastic, you might as well maximize the credit. Here are some of my favorites.
Lowest Rate
Although I recommend paying off your credit card balance each month, the interest rate your credit card charges, known as the annual percentage rate, plays an important role if you ever do maintain a balance. The average credit card APR in the United States is 12.92 percent. However, more than half of the states have no cap on the amount a credit card company can charge a consumer. That said, when shopping around for a credit card with a low APR, the first thing you need to understand is whether the APR is variable or fixed. A variable rate means that the APR on your credit card is re-priced on a regular basis, usually quarterly or monthly. Although a fixed rate provides you with a bit more insulation from rate fluctuations, issuers can adjust the rate or change the card to a variable rate with as little as 15 days' notice. That said, if you are looking for a card with a low APR, here are three of my top picks right now:
Pulaski Bank Credit Card: If you are in the market for a credit card with a low rate, the Pulaski Bank Visa or MasterCard may be the right fit. The Pulaski credit card offers an introductory rate of 0 percent on balance transfers for 6 billing periods and then a fixed APR of 5.5 percent. In addition, the card does not have any balance transfer or cash advance fees, and is one of the few cards still providing a 25-day grace period. Although this card offers great benefits, the standard card has an annual fee of $35 and the Gold MasterCard costs $50 a year. And, in order to qualify for the card, you must have excellent credit.
