If you’re looking for another credit card, or even your first one, the first piece of advice you will get is to find a credit card with a low APR. What is an APR? How do you find the best rate? Are those zero percent APR credit card offers too good to be true, or are fantasies becoming reality?
The APR is the annual percentage rate. By law, all loan and credit companies are required to report an APR of certain standard amounts. Basically, zero percent credit card offers are a legal impossibility. What you’re actually seeing advertised is a limited time interest rate. For the first six months, twelve months, or perhaps even eighteen months, you might have very low percent (even zero) interest to pay. After that time, however, your zero percent interest credit cards transform into money eating machines.
That other point to realize is that often, the credit or loan company will collect tremendous fees from you in other ways, though not on the initial APR. Balance transfers, for example, even on so called “zero percent credit cards” can cost you a load full of money. In that case, zero percent balance transfers credit cards need to be forewarned against either. Basically, if the fee is not in one place, it will likely be in another. Or at another time. Remember, these companies need to make money somehow.
If however, you currently have large balances on your credit cards or can pay off new purchases quickly, you can save a hefty amount of money with zero percent APR credit cards during that intro period. The question to ask is, precisely what happens when the intro period is over. More importantly, where will your financial situation be? Will you be able to make payments after that time? The best low interest cards are available to people with the best credit. Ruining your credit because the intro period was so tempting would be a terrible decision.
Seeing as you can’t win them all, you need to make a decision when scouting for the best credit card offer. Is the lowest interest rate priority, or the longest 0% APR intro period? If you’re transferring an existing balance, go for one of the 0 APR credit cards. If you can pay off the card before the intro is over, choose APR. For long term charges and no balance transfers, then the lower interest rate is probably more lucrative.
The APR is the annual percentage rate. By law, all loan and credit companies are required to report an APR of certain standard amounts. Basically, zero percent credit card offers are a legal impossibility. What you’re actually seeing advertised is a limited time interest rate. For the first six months, twelve months, or perhaps even eighteen months, you might have very low percent (even zero) interest to pay. After that time, however, your zero percent interest credit cards transform into money eating machines.
That other point to realize is that often, the credit or loan company will collect tremendous fees from you in other ways, though not on the initial APR. Balance transfers, for example, even on so called “zero percent credit cards” can cost you a load full of money. In that case, zero percent balance transfers credit cards need to be forewarned against either. Basically, if the fee is not in one place, it will likely be in another. Or at another time. Remember, these companies need to make money somehow.
If however, you currently have large balances on your credit cards or can pay off new purchases quickly, you can save a hefty amount of money with zero percent APR credit cards during that intro period. The question to ask is, precisely what happens when the intro period is over. More importantly, where will your financial situation be? Will you be able to make payments after that time? The best low interest cards are available to people with the best credit. Ruining your credit because the intro period was so tempting would be a terrible decision.
Seeing as you can’t win them all, you need to make a decision when scouting for the best credit card offer. Is the lowest interest rate priority, or the longest 0% APR intro period? If you’re transferring an existing balance, go for one of the 0 APR credit cards. If you can pay off the card before the intro is over, choose APR. For long term charges and no balance transfers, then the lower interest rate is probably more lucrative.
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