Low Apr

2007-03-08 10:33:40

( Financial )



APR
APR stands for annual percentage rate. It is a figure that shows the yearly interest rate applied to a sum of money owed. It includes costs and charges for any financial services provided. The APR is usually an undetermined amount until a final computation that includes the extra charges is made.

Low APR
To be granted a low APR for loans or for your credit card, you will need to have good credit. Credit cards with very low APR usually require very good credit. Excellent credit is required for credit cards with the lowest APR in the market. A low APR is the function of a low interest rate and low charges.

Low APR and Variable Interest Rates
Some credit cards advertise low APR and variable interest rates. A variable interest rate applies a fluctuating rate to a transaction based on factors such as the prime rate on date of purchase. There is usually a ceiling on variable interest rates, to ensure cardholders that they will never be charged beyond a certain amount. For cards with variable interest rates, it is impossible for companies to assure a low fixed APR. To guarantee a low fixed APR, the credit service provided should also guarantee a fixed interest rate, which will not change under any circumstances. The service charges will also need to be fixed, or the APR will be affected by service charge fluctuations.

Low APR Personal Loans
A personal loan requires no collateral. The bank approves the application after evaluating entries made by prospective clients. Your credit will be evaluated and an interest rate will be given corresponding to the results. To get a low APR personal loan, you will need good credit. In many countries, application forms for personal loans can be filled out online. Credit cards are a must for online transactions, and are also a plus factor when you are evaluated for a personal loan.


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