Lowest Apr: When the Best Deal Matters the Most

2007-06-20 15:49:53

( Financial )



Low APR credit cards charge a reduced interest rate than the regular APR. The lower the rate of interest or APR, the more affordable the card is to carry and the higher is the savings. So if you have a huge monthly balance on your cards, credit cards with the lowest APR could be an advantage for you and in a few cases where low apr credit cards have promos, they can also help card members save money over time.

Rationale of Low APR Credit Cards

The Annual Percentage Rate or APR is the amount of credit; it is the cost of interest rate that is applicable to any remaining balance on a credit card. If you don’t settle the full payment during the grace period assigned by the credit card issuer, the company has the prerogative to charge a certain fee for such service, an interest rate charge which is the APR. However, a credit card to be regarded as affordable to a client, it should carry low apr rates.

Annual Fee. Credit cards carrying the lowest apr may provide low apr rates but demands payment of a significant annual charge. If the applicable rate of interest is certainly greater than the actual rate, then such credit card is clearly a low fixed apr credit card.

Low Introductory Rate. Credit card issuers are aware that low introductory rates are excellent advertising rewards. So when all of a sudden, the promotional period expires, and your lowest monthly payments increase drastically, then it could be a sign that something is definitely wrong. Find it out prior to application before you become a victim of credit card scams.

High Balance Transfer Fees. Another deception in the business is that among the low credit card APR company provide low rates for balance transfer that comes with significant charges. Such charges are always discussed in the terms and conditions but are seldom discussed verbally in the advertising scheme of the card.

Thoroughly go over the fine prints and the entire terms and conditions concerning any low APR credit card before applying.

More Tips On Low Rate Credit Cards

Among the strategies that a few people utilize to maximize low rate credit cards is to keep offsetting credit card debts to various cards with 0% introductory rate until such time that it has been successful settled. However, be cautious in terms of this strategy. Such strategy requires time and discipline and a high level of carefulness in maintaining actual records.

Credit card companies set asides the lowest apr for clients with the best credit standing, so, at all times, keep a flawless credit record.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.