The APR or Annual Percentage Rate of a credit card is an essential determinant of how much cardholders have to pay in a year. To get the monthly interest rates, the declared APR must divided into 12 months. The lower the APR, the better it is for consumers. Low APR cards help save more money compared to cards that have high APRs. Because of this, credit card seekers are always on the lookout for an APR credit card low offer. Many providers claim that they can provide an APR credit card low offer. Cardholders should first ask themselves how low should an APR should be. How can one say that a provider offers a low APR?
A good offer that various providers claim is a zero interest rate offer. This means that cardholders will not pay interest rates from their balances. However, these offers usually last for a limited time only. Companies have different periods of zero interest offers. They can be as short as a month to as long as an entire year.
If you find the offer from various providers, you only need to choose the one that offers the longest period for the offer. However, you might notice that some providers have the same periods for their promos. In this case, you should now look into the standard APR after the period.
After the promo period, the company may revert back the interest to its normal rate. The interest rate varies from one company to another. Some rates are low while some are high. The interest rates may also differ based on the card’s use. For regular purchases, the rate may be lower but in cash advances, it could balloon. Typically, rates should be between 10 to 30 percent. If you find the lowest regular APR for whatever purpose you have with your credit card, this could be where your comparison ends.
Just remember that overall, your use and management of the card has a direct impact on the interest rate. If you have frequent late payments or exceed the credit limit, the provider may increase rates. You should be able to spot this provision when you read the fine print. So, it is advisable to always look at the terms and conditions before you make the final decision to choose the provider.
Finally, aside from the APR, also consider fees and other charges and compare them. This also has direct impact on how you can manage the card in the long run.