APR, (which stands for annual percentage rate), is an important factor when deciding what credit card you want to sign up for.  Your APR is simply the interest rate at which you’ll be paying your credit card bills.  Credit cards offer a variety of approaches to APR.  Some will offer you a fixed-rate APR, so you’ll be paying at a particular interest rate for the whole time you have a balance.  Others will offer you an introductory APR.  You start off with a very low interest rate then, after a certain period of time, it changes to a higher rate.  However, what you should try to look for are 0% APR credit cards.  With 0% APR credit cards, you do not have to worry about an interest rate at all for a little while.  In fact, the average time period that 0% APR credit cards will offer this rock bottom rate is usually 12 months. 

So, why do 0% APR credit cards exist?  It’s simple.  By offering 0% APR credit cards, companies hope that their customers are going to embark on a spending frenzy.  When the phenomenally low APR rate ends, 0% APR credit cards turn into credit cards charging a much higher interest rate.  The customer then has to pay at this rate until their balance is paid in full. 

If you’re considering signing up for a 0% APR credit card offer, it is very important you do whatever you can to pay your balance before the 0% APR term is up.  For example, if you get a 0% APR credit card that has a 0% APR for six months, make the minimum for five months and pay the full balance in the sixth month.  Try to avoid having a balance that you can’t afford unless it is necessary.

In addition to a 0% APR, there are a number of other factors to consider when you apply for a new credit card, such as the annual fee.  With the exception of airline rewards credit cards, most credit cards do not charge an annual fee.  If you have good credit and aren’t looking to get 10,000 free frequent flyer miles, you should have no problem getting a credit card that offers a 0% APR for 1 year and charges no annual fee. 

Another factor to examine is the rewards program.  With the exception of the airline rewards credit cards noted above, most credit cards offer some kind of rewards program that gives you points, airline miles or cashback every time you use your credit card. If you intend to use your new 0% APR credit card as your primary card, then getting good no fee rewards should factor into your decision process.