APR stands for Annual Percentage Rate and shows you the rate of interest you will have to pay for using your credit card. 0 APR cards are fantastic in the sense that you pay zero interest for a certain period of time. This time frame may vary from 6 to 12 months.
There are so many cards to choose from, thus one needs to read that fine print very carefully. I mean it, once you have sign or accepted terms and conditions there is no way you can turn back.
There are usually 3 types of APRs when you apply for a credit card.
Introduction APR:
This will be set for a period of time at a fixed rate. Credit card companies usually have this at 0% for 6 months, but you need to look out for the following: Is the 0% interest on balance transfer amount or is it on the purchases amount? This will benefit you either way, but just make sure you know which way it does benefit you.
APR after Introductory Period:
After the introductory period is over, this will be your new interest rate. Just make sure it is not a huge percentage jump. I mean if you have a current credit card and your interest rate at 15%, there is no sense in you accepting a card that offers you 0% interest rate for 6 months then 19% thereafter. Make sure of the interest rate after the introductory period is over.
APR for too many late payments:
This will supersede any other interest rate you have if you make too many late payments. This is usually at 22 to 24%. You do not want to do that to yourself. Good news is, if that does happen you can revert back to your normal interest rate after a certain number of months as long as you have been paying on time each month.
To make sure you ask the right questions about the interest rate on a credit card, ask the questions above and you should be fine. But, also remember to look at the card's annual fee, balance transfer fee, cash advance fee and over the limit fee. These questions are secondary, since your primary aim is to reduce your interest payment. Your main questions should be the questions about APR as discussed earlier.
Remember all credit cards work on a FICO score so make sure it is always intact by, not paying late and by not applying for too many lines of credit at once. Before you apply, remember the fastest and safest way to apply is online.
Luis Teixeira offers advice and great tips regarding all aspects concerning Credit Cards. Get the information you are seeking now by visiting Apply For A Visa Credit Card.
Home Articles Privacy Policy About Us Contact Us