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For Reality: What Is A Low APR Credit Card
By: David Riewe
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.
About the Author:
David Riewe is a Publisher and Online Marketer. Visit his Credit Resources Blog
Below: http://www.push-button-online-income.com/creditcards/
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