Credit Cards with Low Fixed APR

2008-01-11 13:06:56

( Financial )



Common Hassles with Credit Cards

While they may be convenient for making purchases when you don't have enough cash, credit cards also come with a price.

Regular credit cards specify a spending limit. You also need to pay an annual fee, especially if you're a new credit card holder. Every month, you receive a statement which itemizes all your credit card purchases during the period. When you don't pay the entire outstanding balance on your bill, the card company charges you interest, just like any loan facility.

The annual percentage rate or APR on regular credit cards is usually very high, with some card companies charging as high as twenty percent APR. This is to discourage card users from leaving any unpaid balances on their accounts.

New Perk on Credit Cards - Low Fixed APRs

The credit card industry is highly competitive, where credit card customers easily switch from one card provider to another. Many major card companies have begun to realize the advantage of offering special perks to maintain business with their good-standing clients. For the most part, companies focus on the amount of fixed APR that they charge for outstanding balances.

A common introductory perk is to charge you no APR for the first twelve months, then a low fixed APR thereafter. This is to encourage you to make more purchases.

Combination with Other Perks

Companies that charge low fixed APRs may also give you other perks, depending on the type of credit card facility you have. For instance, some Platinum cards waive not only the APR but also the annual maintenance fee. With other cards, you may also enjoy free travel insurance and 24/7 roadside assistance in case of car trouble.

Other cards also offer you the chance to collect airline miles and reward points for your purchases, as well as rebates for your purchases at specific retailers like gasoline stations and supermarkets.

Eligibilities for Getting Low Fixed APRs

In order to enjoy low APR rates, you must meet certain requirements. The main requirement is to have impeccable credit standing, which means that you have never had any overdue payments or defaults in any of your existing credit card or personal loans.

And while you use the credit card, you must make sure to pay all your dues on or before the deadline. Most card companies terminate your privileges after two overdue payments.

To get more information about your eligibilities for low APR rates or other perks, you can visit the different credit card sites.


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