So shrewdly analyze your ability to pay off debt, then examine many of the introductory offers for the lowest possible APR for the longest period of time, in addition to the parameters of the APR hike at the end of the promotional period.
For example, if the teaser interest rate is listed as 1.25%, applicants should read the fine print and realize that this rate is not for a fixed rate loan, and the annual percentage rate (APR) is actually closer to 6%, not 1.25%.
If the credit card application offers a 0% APR feature or balance transfer credit card, then this card will give you the benefit of using credit without making any interest payment on the principal for a specific period of time.
On some cards, one late payment can bump you up to the default APR, which is much higher than the corresponding APR and can cost you hundreds, even thousands, of dollars per year depending on the card's average daily balance.
Although banks are legally bound to disclose the actual APR at which they make credit available to their customers, many customers may not really understand their contracts in full and may be unaware of their actual APR.