Low APR Credit Cards
It stands to reason that when you accept a credit card you want it to have the lowest Annual Percentage Rate (APR) possible. Who wouldn't? The good news is that many companies are offering low APR credit cards as a way to draw in new customers so they are fairly easy to obtain. The bad news is that even though they have the lower interest rate that you are looking for, they also frequently come with strings attached.
There are several factors that determine the APR you have on your credit card. The type of card you have can have a major impact on your interest rate. If you have a card that is specifically meant for someone who has less than perfect credit then you guaranteed to have much higher APR. The same is true for rewards based cards which reward you in some way for each purchase that you make. If you are late making your payments or go over your credit limit card companies will frequently raise the interest rate that you are paying. In some cases, card companies will offer you an introductory APR that is only available for a short period of time. Once that time frame expires, the interest rate goes up. Finally, your APR can differ from month to month if you have a flexible interest rate.
There are steps that you can take to ensure that you get the best APR possible. First off, you have to do your homework. Do not accept the first card that you are offered thinking you can't get a better rate. You do not know that without doing some comparison work first. Take the time to compare different credit cards. Look for the following information to help you determine which one is best:
-Is the APR variable or fixed? You need to decide which type best suits your needs. Do you want a card that has the same APR each month or do you want one that may give you a lower rate one month and a higher rate the next?
-Is the APR an introductory offer that will go up after a specified period of time? If so, keep looking. There are companies that offer lower APR's on a permanent basis. Otherwise, be prepared to transfer the balance to a different card when the introductory APR expires.
-Are there any other fees associated with the card? For example, membership fees or account protection fees. The problem here is that you will get charged interest on these fees as well as any charges you make. Many companies do not charge membership fees or account protection fees.
-Beware of varying APR's on the same credit card. Some companies will charge you one interest rate for purchases, another interest rate for cash withdrawals, and yet another interest rate if you are late making a payment or go over your limit. Some companies also have tiered APR's that are calculated based on your card balance.
Even if you already have a credit card with a high APR, there is a good chance that you can get it lowered by making a phone call to your credit card company or by transferring the balance to a lower APR card. Call your credit card company and ask them about lowering your interest rate. If they seem reluctant to do so, politely inform them that you will be seeking lower interest rates elsewhere. If they still don't want to help you, then you do exactly what you told the card company you were going to do. Start looking elsewhere.
Low APR credit cards can save you a lot of money at the end of the month. Unless your credit is extremely bad, there is no reason to suffer with high interest rates. There are ways that you can get your APR lowered without causing a major headache. You just have to be willing to do a little work.