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How to Choose a Low Intro APR Credit Card

Paying down a credit card balance can be a challenge. That's because, in addition to paying the principal, you are also paying interest (also known as APR, or annual percentage rate).

Many banks and credit card issuers have special offers to help consumers pay down debt or finance a big purchase. These include low intro APR credit cards, which offer very low interest rates, or even 0% APR, on balance transfers and possibly for purchases for a specified number of months (this is usually called the introductory period).

These cards really can help you manage your debt, but it's important to understand how they work. In this article, we'll explain what a low intro APR credit card is and how to find the right one for you.

Why choose a low intro APR card?

The value of low intro APR credit cards is that they allow you focus on paying down the principal while, for a limited time, lightening the burden of monthly interest charges. That can help you reduce or eliminate debt in a shorter period and reduce the total amount of interest you pay.

Here are a few more reasons for considering a low intro APR credit card:

  1. Consolidate debt. If you're paying interest on several different credit cards, it might make sense to consolidate them into one low intro APR credit card account with a balance transfer. Then you can start paying them off over a period of time with less interest. However, for this to work, it's important to limit the use of the other credit cards or not use them at all during this time. This way, you can pay off their balances each month while staying focused on paying down the low-intro APR card

  2. Save money. In 2024, Americans paid over $254 billion in credit card interest and fees, and the amount paid per account was more than of $100. A 0% intro APR offer would, in theory, allow that average cardholder to put that money toward the principal rather than interest

  3. Build credit. Transferring a balance from a credit card - or multiple balances from multiple cards - to a low intro APR credit card can improve the credit utilization part of your credit score. Making the monthly payments on time for the new account also can benefit your credit score

Before choosing a low intro APR card

There are several factors to consider when deciding to apply for a low intro APR credit card:

  1. What are you going to use it for? Have a purpose in mind before starting the application process. This will help you pick a card to best meet your financial goals

  2. Compare introductory periods. The introductory period could be 12 months, 18 months, or longer. All other things being equal, the longer the period, the better

  3. Check balance transfer fees. When you transfer balances from other credit cards, you may pay a balance transfer fee for each account. This typically is a certain percentage of the amount being transferred, with 3% being a common fee. Some banks might increase this fee for balance transfers made after the first 60 days, or some other period

  1. Know the APRs. The APR during the introductory period is important, but there is more than one APR to check on. You also need to know what the APR will be after the introductory period is over. This rate can vary based on your creditworthiness. It's also important to know whether the introductory APR applies to both balance transfers and purchases. If it applies only to balance transfers, then you could see a higher rate for purchases. You might also find that there's a higher rate for cash advances

  2. Look for additional benefits. Some cards come with a rewards program, which may give you cash back or points toward other purchases, such as plane tickets. If you travel overseas, you may look for a card with no foreign transaction fees. Another benefit may be a no-penalty APR, which doesn't raise the interest rate or charge a late payment fee in the case of a missed payment

  3. Know your credit score. Obtaining a low intro APR credit card typically requires a good to excellent credit score. The ongoing interest rate (the rate you'll pay after the promotional rate expires) and your credit limit may also depend on your creditworthiness

How to compare low interest APR cards

If you do an online search for "low intro APR credit cards," you're likely to be met with a overwhelming amount of offers, benefits, and features. Here's some ways to compare them and decide which card will best meet your needs:

  1. Balance transfer APR vs. purchase APR. The credit card issuer must spell out how it charges interest in its terms and conditions. You can compare balance transfer APRs as well as the interest rate you might pay when the introductory period ends. Also compare whether the introductory rate applies to both balance transfers and purchases. Even if you don't plan to use the new card for purchases, you need to know what interest rate you could pay, just in case

  2. Compare balance transfer fees. Depending on how much money you're transferring, the difference of a few percentage points in the balance transfer fee could be significant, and cards with no transfer fees being the best choice. It can be worth the effort to check the fees on different cards while considering all the factors based on what's important to you and how you plan to use the card before making a decision

  3. Consider the issuer's reputation. Looking into low intro APR credit cards from your existing bank is a good start, because you already have a relationship with them. You can also search for online articles, reviews, and comments about different low intro APR credit card issuers.

FAQs

The introductory period must be at least 6 months. Typically, the introductory period is from 12 months to 21 months. Some cards even offer a 24-month introductory period.

In general, 0% APR introductory offers cover balance transfers from other credit cards or forms of debt. Balance transfers, however, usually incur a balance transfer fee, typically a percentage of the transfer amount.

Many low intro APR credit cards do not have an annual fee. But others, like a premium card that offers extensive rewards, could come with an annual fee

Credit Cards offered at TD Bank

Explore TD Bank credit cards to find the right offer for you and your financial goals.

This article is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available.

TD Double Up Credit Card
*Read important Credit Card Terms and Conditions for details about rates, fees, eligible purchases, balance transfers and rewards program rules.

TD Cash Credit Card
*Read important terms and conditions for details about rates, fees, eligible purchases, balance transfers and rewards program rules.

TD FlexPay Credit Card
*Read important terms and conditions for details about rates, fees, balance transfer rules.

TD Clear Visa Platinum Credit Card with a $1,000 Credit Limit
*Read important terms and conditions for account details. The Clear Platinum Visa Credit Card with $1,000 Credit Limit has a $10 monthly membership fee. The monthly membership fee will be added to your monthly billing statement each month as a charge, whether or not you use your account, and applied against your available credit like other charges.

TD Clear Visa Platinum Credit Card with a $2,000 Credit Limit
†Read important terms and conditions for account details. The Clear Platinum Visa Credit Card with $2,000 credit limit has a $20 monthly membership fee. The monthly membership fee will be added to your monthly billing statement each month as a charge, whether or not you use your account, and applied against your available credit like other charges.

TD First Class Visa Signature Credit Card
*Read important Credit Card Terms and Conditions for details about rates, fees, eligible purchases, balance transfers and rewards program rules. If you take advantage of a 0% introductory or promotional Annual Percentage Rate (APR) balance transfer offer and then use your Account to make new purchases, you can avoid paying interest on those new Purchases if you pay each month by the payment due date the “Payment to Avoid Purchase Interest” amount shown within the ‘Payment Information’ box on your Account Statement.

1Bonus miles will be reflected on your credit card statement 6 to 8 weeks after a qualified first purchase and/or 6 to 8 weeks after $3,000 in total net eligible purchases made within the first 6 billing cycles of your credit card account opening date. This offer is non-transferable. This One-Time Bonus Offer is not available if you open an account in response to a different offer that you may receive from us or if you previously received a One-Time Bonus Offer on this account or any other account with us. Eligible purchases do not include purchases of any cash equivalents, money orders, and/or gift cards or reloading of gift cards. Groceries purchased from superstores and/or warehouse clubs may only earn 1 mile for each dollar spent.

TD Cash Secured Credit Card
*Read important Credit Card Terms and Conditions for details about rates, fees, eligible purchases, balance transfer and rewards program rules. Eligible purchases do not include purchases of any cash equivalents, money orders, and/or gift cards or reloading of gift cards.

TD Business Solutions Credit Card
*Read important terms and conditions for details about rates, fees, eligible purchases, balance transfer and rewards program rules. The person applying for the account is individually liable for the payment of all balances on the account and all cards issued pursuant to this application.

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