Written by Admin on 12 March 2010
best balancetransfer credit cards
When you take outa new credit card with 0% APR (Annual Percentage Rate) the introductory periodoffering the 0% APR is normally between 90 days and 15 months. When you takeout a new airline miles credit card, most of the time you will get bonus milesof the first purchase that you make. Also you won't normally get an annual feefor the first year and you will get 0% APR on balance transfers and alsopurchases made during the first year of having the card. All of the above soundvery nice but you also need to consider being able to afford the cost ofmaintaining the credit card after the 0% APR finishes. The annual fee couldrise to as much as $75 and also the interest could be 17% or higher.
It is veryimportant to make sure that you understand the benefits of either getting freemiles up front with the other incentives against the cost of keeping the cardgoing after the first 12 months. One of the better ways to pay off your creditcard debt is by budgeting your monthly expenses and planning an amount eachmonth to pay off of your credit card. You could move some of the outstandingbalances onto a 0% APR credit card which would help as well while you pay withmonthly instalments as you will not be accruing any more interest to what youalready owe. If you have a high credit score then it should not be a problem gettinga new credit cared with a low APR or 0% APR. There are a lot of credit cardsnowadays that offer 0% on balance transfers for the first 6-12 months Thiswould save a small fortune in the long term.
When thinkingabout a card there is more to think about than just the 0% APR that the companyis offering. I am not saying that 0% APR is not a very good deal, but you needto look at how long it is for and what other benefits are available. Forinstance, there are some cards that offer fantastic reward schemes and also agrace period, which is normally around 20 days. You may be able to earn pointswhen you shop, this is a good idea if you do your weekly shopping on the cardand also are able to pay the card off in full each month.
Written by Admin on 10 March 2010
low credit cardrates
What's APR?Basically, the APR or annual percentage rate of a credit card is thecombination of low interest rates and finance charges.
What's more eachcredit card has several different APRs. At the minimum they will have a ratefor purchases, cash advances, and transfers. Typically, cash advances willcarry a higher rate than for purchases or transfers. Transfers usually carrylow rates. Sometimes you can even find an APR of 0% for an introductory period.
Are there reallyzero percent (0%) cards and what does it mean. Lets say you already own acredit card and you've used up most of your credit already. With a 0% APR introrate credit card, you can transfer your balance without incurring additionalinterest. The 0% is usually an introductory rate used to entice you to applyand will revert to a higher rate at a later date. This is explained to you atthe time of the application.
To entice you toopen an account, credit card companies offer introductory and delayed APRs. Anintroductory rate lasts for a certain period, usually six months to a year.Delayed APRs charge no interest until a certain month. Sounds pretty much thesame thing.
If you'replanning to make a significant purchase but paying it off before theintroductory period is over then yes, having a 0% APR intro rate credit card isthe best option for you. Remember, the keyword here is intro – which indicatesthat this is only something like an introductory offer so dont expect the 0%APR to last forever.
Make sure youknow what the APR of the credit card is going to be after the introductoryperiod. If the interest rate is higher than the APR of other credit cards thatdo not offer 0% APR for a certain period of time AND youre not planning tomaximize the 0% APR youre given then maybe, its better to simply go with a lowinterest credit card.
When shopping fora credit card, it is important to understand the annual percentage rate (APR)to find the best deal for your situation. If you pay off your bill every month,a no fee and moderate APR plan may be best. However, if you take out cashadvances, you will want a low APR on that feature.
Some cards alsooffer tiered rates, which keeps rates low for those that carry a small balance.For example, a card might offer 15% on balances up to $1000 and 18% on balancesover $1000.
Which one isbetter: a low interest APR credit card, a 0% APR credit card or a tier ratecredit card? This question would require you to research a bit but since yourdecision will ultimately affect your finances then its better to put some timeaside and do some research, preferably online where it is easier and quicker.You know your credit habits, pick the credit card with the rates that will giveyou the best deal.
