Low Apr Credit Card
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APR (annual percentage rate) is one of the most important factors to consider when applying for a new credit card or when spending on different credit cards. The lower the interest rate, the less additional charges will be applied to your credit. Thus low
APR credit card is a considerable benefit as the APR might vary between 3 percent and 20 percent, or even go above 30 percent.
A widely used marketing trick by the banks for attracting new credit card applicants is advertising zero or very low
APR credit cards. However be extra careful if you come upon such a deal. 0% APR usually lasts during the first six months only and it might not be applicable to any new purchases but only to your current balance. Make sure the annual interest rate advertised in for the whole loan period (for example for one year). Some banks show the monthly APR and it looks just terrific – we all want one of those credit cards with 2.5% APR. However if you calculate how much the annual interest rate is you will find out that it is 30 percent (12x2.5%=30%). And this is not a low
APR credit card at all.
APR might be fixed or variable and believe it or not this is another serious factor that should shape up your final credit card choice. A Fixed interest rate stays the same during the whole loan period, while a variable interest rate may change at any point in time. Low variable APR credit card is a tempting offer but it’s also much riskier than the fixed ones.
The good news is that the APR of your card is likely to change over time. Call your credit card company and ask them to lower your annual interest rate. Having a good credit history is a must – if the bank considers you an unreliable debtor, it will be pure lick to get a new lower APR. Being a customer from a long time can also help. Don’t expect a positive answer right away so be insistent and ask to talk to a superior if necessary. You can even press them a bit harder saying that you will go to another credit card company. The chances are that you will get a lower interest rate even if it’s just for a limited period of time. In case your request has been rejected, don’t worry - wait a few months and try again.
It is good to try keeping one of your credit cards “clear” in order to get better interest rates. A low APR credit card can be a huge advantage. Not only that you will spend less on interest charges but it can save you in case you have a debt. Low APR card is helpful for debt consolidation purposes - transfer the dept to this credit card and you will not only pay less interest charges but it will be easier for you to reduce the debt.
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