Low apr credit-card
Maximizing the potentials of a low APR credit card
Indeed, if a credit-card is used properly, it can be the most powerful financial tool.
But not everybody can afford all the expensive rates of most credit-card issuers offer. This is where the low APR credit-card ushers in—to help people who plan to maintain a balance on their account and not to pay the full amount monthly. But, what does APR stands for in a low APR credit card?
Basically, APR is the cost of credit as a yearly interest rate.
APR stands for “Annual Percentage Rate” of charge can be used to compare different credit and loan offers. The APR on credit-cards is typically computed monthly based on the existent amount in the card. The monthly interest is summated as if the existent card balance would remain the same over a year; the interest on the amount over a year (APR) is worked out and divided by 12 to give the monthly interest. It is a must that all lenders tell the client what their APR is before signing any agreement.
Although the arrangements and terms may vary from lender to another, it is better for people to avail a low APR credit-card because the lower the APR, the better the deal for them to spend more money in shopping around.
Why choose a low APR credit-card?
Low APR credit-card is a good choice for those people who are into a tighter financial budgeting.
Being the most essential attribute of a credit card, APR determines the significant balance over a longer period of time.
In a low APR credit-card, the amount of interest one must pay on his/her debt depends on its APR because the lower the APR is, the better it is him or her because it means they have to pay less interest.
APRs in a low APR credit-card can either be “fixed” or “variable.”
If you're planning to have a low APR credit-card, there are so many cards that provide low APRs that can be found online. These low APR credit-cards are chosen using a factoring scheme that organized these cards by computing a number of their attributes to place the best deals at the top.
A few of the questions one have to ask if seeking for a low APR credit-card includes the charges—if they vary or a fixed rate; and if these charges are variable because it might affect the repayments and if these rate are fixed or will it stay the same.
Searching for a low APR credit card may also include inquiries on the possibility of any charges that are not included in the APR like alternative payment protection insurance or an annual charge. If there are any, be certain that you understand what they're and if do you have to pay them. Lastly, seeking for a low APR credit-card should include questions on the conditions of the credit and how would these conditions suit you.
If you're now seeking for a low Apr credit-card you may begin seeking for a scheme that could help you save hundreds in interest with a low interest credit-card and low cost processing.
Most low APR credit card offers 0% APR for the 1st months on purchases, cash advances, and balance transfers.
Through these, low APR credit-card can warn rebates towards any item purchased. They also propose $0 liability on unauthorized purchases, and no annual fees.
A few low Apr Credit Card that have excellent intro rate for purchases is recommended for those who would want to avail one.
They also offer good deals if one carry high balances on other cards and need to transfer the balance.
Indeed, having a credit-card can be useful and convenient, and can even help build a strong credit history that will help you with future activities like home-buying, paying for higher education, and even finding a job.
But, before you apply for a card, consider the advantages and disadvantages particularly with the existent financial situation you're in.