Maximizing the potentials of a low APR credit card
A credit card can be the most powerful financial tool if used properly. Most people cannot bear expensive rates of most credit card companies propose. This is where the low APR credit card come in to help people who wish to maintain a balance in their account and not to pay full amount monthly. But, what does APR stands for in a low APR credit card?
Basically, APR is the cost of credit as a yearly interest rate. APR stands for “Annual Percentage Rate” of charge used to compare different credit and loan offers. The APR on credit cards is usually calculated monthly based on the current amount in the card. The monthly interest is calculated as if the current card balance would remain the same over a year; the interest on the amount over a year (APR) is worked out and divided by 12 to give the monthly interest. It is a must that all lenders tell the client what their APR is before signing any agreement.
Although the arrangements and terms may vary from lender to another, it is better for people to avail a low APR credit card because the lower the APR, the better the deal for them to spend more money in shopping around.
Why choose a low APR credit card?
Low APR credit card is a good choice for those people who are on a tighter side of budget. Being the most important attribute of a credit card, APR determines the significant balance over a longer period of time.
In a low APR credit card, the amount of interest payable on credit card balance depends on its APR because the lower the APR, the better it is because it means they have to pay less interest. APRs in a low APR credit card is either “fixed” or “variable.”
If you are planning to have a low APR credit card, there are so many cards that offer low APRs that can be found online. These low APR credit cards are chosen using a factoring scheme that organized these cards by computing a number of their attributes to place the best deals at the top.
Some of the factors one has to consider when looking for a low APR credit card includes the charges — if they vary or a fixed rate; and if these charges are variable because it might affect the repayments and if these rate are fixed or will it stay the same. Searching for a low APR credit card may also include inquiries on the possibility of any charges that are not included in the APR like optional payment protection insurance or an annual charge. If there are any, make sure that you understand what they are and when do you have to pay them. Lastly, looking for a low APR credit card should include questions on the conditions of the credit and how would these conditions suit you.
If you are now seeking for a low Apr credit card you may begin looking for a scheme that could help you save hundreds in interest with a low interest credit card and low cost processing.
Most low APR credit card offers 0% APR for the first month on purchases, cash advances, and balance transfers. Through these, low APR credit card can warn rebates towards any item purchased. They also offer $0 liability on unauthorized purchases, and no annual fees.
Some low Apr Credit Cards that have very good intro rate for purchases is recommended for those who would want to avail one. They also offer good deals if one carry high balances on other cards and need to transfer the balance.
Indeed, having a credit card can be useful and convenient, and can even help build a strong credit history that will help you with future activities like buying a home, planning to pay for childrens higher education or even finding a job. But, before you apply for a card, think prudently about the advantages and disadvantages keeping your current financial situation and payment-worthiness.
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