What Is A Low APR Credit Card?
Shopping had never been lousy since the advent of credit cards.
Since then, people had always been indulging into various
cashless shopping due to the convenience of the credit card.
However, most people get credit cards only for the sake of
shopping. They do not even read the fine print on their credit
card and the least that they have considered is the one with the
low annual percentage rate or APR. Most of them did not even
know how interest rates could affect their billing.
On its general since, low APR credit card are those that have
lower APR. This means that the cost of the interest rate will be
according to the purchases obtained by the customer.
Normally, APR vary from 6% to more than 30%. Of course, it would
be clear that the card with the lowest APR credit card is those
that have 6% or lower.
But consumers should remember, that APR can be very tricky
especially if the consumer have no idea what interest rates mean.
Basically, credit card companies would offer the consumers very
low APR credit card so as to get the consumers on the hook. In
fact, credit card companies could lower their APR to as much as
0%.
Low APR credit cards are usually expressed during the
introductory rate so as to entice new credit card holders to
sign up to them; and once they are all hooked up, the credit
card company would start changing and increasing their credit
cards.
People should know what makes a low credit card really low and
the best option for retaining that low APR even if the
introductory offer is over.
First, they should know that APR has two faces: the fixed and
the variable.
The fixed APR has more stable interest rates than variable
rates. Variable rates, on the other hand, can start really low
but it all depends on the prime rate of the Federal Reserve.
This means that at any point in time, it may increase.
Needless to say, there are really quite a few credit cards that
have low APR. The reason behind it is that APR is actually where
the credit card companies get to earn a living. If they continue
to give people the low APR that they used to claim, chances are
they wouldn't be in the business for so long.
The bottom line here is that consumers should be really
conscious on their APR and other interest rate. Low APR credit
cards will not be very beneficial if it will only last for 6
months or so.