So, what is APR? Your APR is your annual percentage rate. Your annual percentage rate is the combination of low interest rates and finance charges on your credit card. With that being said, I will go ahead and answer another question: is there really such a thing as a zero percentage rate and what does it mean?
Say you currently own a credit card and you have used up most of your credit so far. With a zero percent APR introduction rate, you can transfer your balance without being hit with additional interest. What makes this great is if you are planning on purchasing something and paying for the entire purchase before your introduction period is over, having a zero percent annual interest rate credit card would be the absolute best option for you. The key word here however is introduction. This indicates that this is something like an introductory offer and the zero percent annual interest rate will not last forever.
What about low interest annual percentage rate credit cards? If you are a person in search of a credit card with charges over a long period of time, then it is best if you go with a low interest annual percentage rate credit card, instead of one with a zero percent annual percentage rate because the interest rate will eventually go back to normal and cost you more in the end. Is a low interest annual percentage rate credit card or a zero annual percentage rate credit card better? This decision ultimately relies on your personal financial status and would require some research to find an absolute answer.
The very first question to the credit card company should be about the length of the introduction period. If you are interested in the zero annual percentage rate then it would be best to find out how long it will last. This introduction period usually last anywhere from three to fifteen months but some credit card companies allow an even smaller amount of time and this would leave the credit card holder at a disadvantage. Then again, some credit card companies offer even more time, but this happens on very rare occasion. Another question to ask if going the zero percent annual percentage rate route would be what the rate will be at the end of the introductory period. If your rate is higher than that of other credit cards and you are not planning on maximizing the use of your zero percent annual rate, then it is best for you to just stick to a credit card with low rates right at the start. This will save you a lot of trouble later.
If you have a credit card or are looking to get one, it is important that you understand the ins and outs of card APR. Credit card APR is the biggest factor in determining how much you pay for your card, and so to get the best deal you need to know what it is and how it works. Here is some advice regarding the ins and out of credit APR.
What is APR?
APR stands for Annual Percentage Rate, and is a measure of the cost of the credit you borrow. The APR is the amount that you pay yearly in interest on the money that you borrow on your card.
How much is credit card APR?
Card APR can vary massively depending on your financial situation, the type of card you want and the deals on offer. Generally, credit card APR ranges from 10-18%. If you shop around then you will find the best deal for your needs.
How do I find out the APR?
Credit card APR is very easy to find out, and all lenders are required to tell you the APR of a card before you sign up for it. Also, credit cards are generally advertised by the cost of their APR.
Comparing APR
If you are trying to find the best card deal, then there are many places online where you can compare the various APR rates of cards from different lenders. Although there are other costs involved with credit cards, generally a lower APR is better.
O% APR deals
If you are looking for a credit card, then you might see 0% APR card deals advertised. Although many of these deals are not what they seem to be, there really are some great introductory offers to be had. Some cards do offer 3 or 6 months with 0% APR, meaning that you can use your card without paying any interest during this period. This gives you basically free credit, providing that you pay it back in this time.
Drawbacks of 0% APR
The drawbacks of these deals are that there are often hidden costs involved, such as high fees if you miss payments or go over your credit limit. Also, once the 0% period ends the credit card is generally has a higher APR rate than other cards. To use 0% APR cards to your advantage, you should look for one that has a fairly low rate after the initial period, or swap cards once the 0% period ends. If you invest a little time and effort you can skip from 0% APR to 0% APR on various cards. Of course, this can make you look financially unstable so you should be careful when swapping cards frequently. However, if you understand APR rates then you will be able to find a great card deal.
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