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Free credit cards - what a concept! We're all enticed by the very word free. The more common term for free credit cards, however, is 0% (or zero percent) APR credit cards. APR stands for annual percentage rate. In other words, free credit cards can refer to those that charge you no interest on the purchases you make with them.

Years, and decades ago, the APR was standard no matter which card you chose, and which financial provider. The APR simply depended on the bank rates, which in turn were influenced by the federal reserve. 18 percent was then a fairly standard APR. This was clearly not a time when free credit cards abounded and, in fact, competition wasn't very frenetic, because the rate was the same no matter which card you chose.

Then, however, monoline banks came into being. These banks, unlike the traditional financial institution that accepted deposits and gave out loans, served simply as issuers of credit cards. These still didn't create free credit cards, but they did have a decreasing effect on credit card APR, because competition for credit card users started to become stiffer.

Nowadays, unlike the past decades, you're almost certain to find introductory promotional offers on just about every credit card. While they won't always qualify as one of the free credit cards, most will qualify as low interest first year credit cards. The most popular, of course, are the free credit cards - the ones that offer the zero percent APR at least for the first year.

What's so great about these free credit cards? The primary usefulness is not for the new credit card user (although free is certainly an enticement - and useful - for novice or long time user, young or old) but for those who already have accumulated a hefty amount of debt from the use of cards that don't qualify as free cards.

As an example, let's say that you owe $5000 on a credit card whose APR is twenty percent. You're going to have to pay $1000 just to keep up with the interest. If, however, your credit card is a member of the free credit cards family, your $1000 payment will actually bring the principal down to $4000. What a difference, then, these free credit cards can make!

Free credit cards can best help you get out of debt when you transfer the balance of another high-interest APR credit card to the account of the free credit card.

You might also benefit from free credit cards that charge no annual fee. Some of these do this as a promotional gimmick, eliminating the annual for the first year only, and then charging anywhere from $19 to $250 each year thereafter. Some instead charge an annual fee in subsequent years only if you don't use the card for the number of purchases the free credit cards companies designate as your minimum requirement.

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Yes, low APR credit cards are on the rise. Many credit cards are competing for your business to give you the best and lowest rates available today. There are so many credit cards from you to choose from that they are doing all kinds of things to get your attention including lowering their interest rate and giving you no annual fees.

Why is this happening? Because there are so many credit card companies. They all want your business and this is an attractive incentive to get you to apply and own one of their credit cards. If you choose a low APR credit card over one with 19.99 percent you are sure to go with the lower APR.

The only problem is that sometime these 0% and low APR credit cards are only promotional ways to get you to apply and then later your interest rate will rise. Many credit card companies have low APR credit cards for a certain amount of time such as 3 months, 6 months and some up to one year. You will have to compare to find out which one keeps the lower APR after the promotional period to ensure you are getting the best deal around.

No matter what the reason low APR credit cards are here to stay as long as the companies are competing for your business. Just remember to compare everything they offer besides the lower interest rate. You may find that several credit card companies are now offering other wonderful incentives for you to apply with them such as reward programs.

No matter which company you choose, you will enjoy the low APR credit cards even if it is only for a limited time. You will be able to save money on your purchases because you will not have to pay any interest until the promotional period is over. Just be sure your balance is very low when the interest rate kicks in and you will be fine.