The credit card is a handy financial tool when cash is not available for important purchases. However, it turns out to be a threat or problem if the debt from the card is not managed or paid well. To avoid such possible problem, credit card holders not only try their best to limit their purchases using their cards, they also look for low APR credit card.
APR is also known as the Annual Percentage Rate of the card. This annual rate is divided in 12 months to come up with a monthly interest rate for your card each time you leave off balances. Although commonly, you will see the monthly interest rate of the credit card, companies are obliged to reveal the APR of every credit card.
Different companies have different APR that is why people are looking for companies who offer the lowest ones. Although most of the low APRs are seen in the promotional offers, it is best to look into the terms and conditions as well to know the period of the promo and how much is the regular APR after the promo period.
It is also best to see if the company offers fixed APR or variable APR. Each type has its own advantage for cardholders. Fixed means consistent rate throughout a year while variable changes every time the rate from Treasury bill or prime rate changes, whether high or low.
Low APR credit card will help you minimize your monthly payment, especially if you plan to leave out balances every month. You could use your savings for other expenses so it pays to shop around to find the ones that are most favourable to you.
Generally, in your search for different providers, you should ask the following questions:
Is the APR fixed or variable? You can expect a fluctuating interest payment every month if you choose variable APR.
What are the terms and conditions imposed by the provider? The fine prints will tell you the exact period of the low APR offer and the regular interest after the offer.
Are there other charges and fees related in the credit card? With this data, you will know how much you need to cash out to settle your credit card at the end of the month.
It pays to shop around for the credit card that can give you high advantage. You just have to take time and effort to compare and contrast the offer. Remember to look deeper into the information instead of looking at the marketing offer alone.
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