The concept of APR – or annual percentage rate – relevant to credit cards can seem intimidating to some. But understanding APR – and the positive benefits associated with having a low APR – are essential for maximizing the positive benefits of a credit card.

APR is the rate of interest applied to credit cards (or other loans) over the course of a given year. It is important to understand that APR is different from the "interest rate" that is applied to any balance that is not paid off entirely. Low APR credit cards can often save cardholders hundreds of dollars, even if they usually pay off their entire balance each month.

With a low APR credit card, cardholders can enjoy buying power and opportunity without racking up costly debt. That is because lower APR means any card balance that does not get paid within the given billing cycle will not accumulate as much interest cost as with a card with higher APR.

Another advantage of a low APR credit card is that it is often associated with higher credit card limits. This means more buying power for underwriting households. A lower APR card could increase the credit limit for a cardholder while still allowing a low interest rate on the balance. This allows cardholders to make purchases while still managing their budget.

In addition, a lower APR card could also bring a wide variety of consumer perks and rewards. These could include cash-back, points programs, and promotional offers, which could be worth hundreds of dollars in value.

In the final analysis, having a low APR on a credit card can help a cardholder to manage the budget more efficiently while enjoying the advantages of having credit buying power and reaping rewards without the worry of accumulating debt from high interest charges. Take the time to review your credit card's APR and explore the cards available with a lower APR range in order to maximize the positive benefits available from owning a credit card.