I am sure you have heard of a low APR credit card. It is one of the most featured cards that credit card companies offer to inquiring applicants. However, if you are just like everybody else, most likely, you have forgotten about the whole APR thing, once you get to other features of the card you want. This is especially true if they have great distractions like cash rewards and special welcome gifts once you sign up. Who could blame you really? You could be offered free gym membership, or 50% discount on a gorgeous Gucci purse, or a trendy Omega watch. Such offers sound exciting, and rewards packages seem so lucrative and generous that you tend to ignore how much APR you are really signing up for.
Of course, this is one grave mistake. If you are hunting for the best credit card offer, ignoring or overlooking the APR is one thing that to never ever do, because getting a low APR credit card is not only practical, but also very wise.
What You Should Know about the APR
The good thing about competition in this credit card business is that companies most often offer 0% APR for the first six months. This means that Annual Percentage Rate is totally zero, and you do not pay any interest in first purchases. This is such a great privilege, right? Truly a welcome gift for any card holder, but then, of course there is a catch here. Most likely, once this wonderful 0% APR period ends, you would most likely be assaulted by a variable rate. This means that a credit card company could assign any rate they fancy, and because companies are shrewd businessmen, of course, you will be given a high rate.
A careful consumer could manipulate this scenario to his or her best advantage. Sure, do sign up for 0% APR, but make sure that after the wonderful APR-free period ends, what you really get is a low APR credit card. Do remember too that the low rate has to be a fixed one and not merely a variable rate. If terms are not clear, however, it is best to go for a low APR credit card that has clear terms and a fixed rate. It is a wiser choice than a card with 0% APR for only six months or shorter, with steep rates after this wonderful APR-free period ends.
The next time you sign up for a credit card, whether it is your second or third plastic, keep these letters in mind: APR. I guarantee that you will never go wrong with your choice.
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