low credit card rates
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.