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Select the Best Low APR Credit Cards |
Hunting for low APR credit cards has become
easier with the advent of the Internet where you can draw an easy
comparison (from the various options available to you at the click
of a mouse) as to which low APR credit card will be the best for
your needs. The article below provides the complete informational
lowdown on low APR credit cards.
Low APR credit cards
charge you an interest rate even lower than the standard APR. The
lower the interest rate or APR, the cheaper the card is to carry and
the more money you'll save on it. So if you carry a large monthly
card balance, a low APR credit card could be very beneficial for you
and in some cases where low rate credit cards have offers, they can
also help cardholders like you save significant dollars over time.
What is an APR anyway? Well, let's discuss
Rationale of Low APR
Credit Cards
The Annual Percentage Rate (APR) is the cost
of credit; it is the amount of interest rate that is chargeable to
any outstanding balance on a credit card. If you don't make the full
payment within the grace period certified by the credit cards
company, the company has the right to charge you a fee for that
service, an interest rate fee known as the APR. But for a credit
card to be considered cheap for a consumer, it should have a low
APR.
With a low APR credit card, comes an agenda in fine
print. Lesser mortals like you and I fail to recognize the same and
read it to our advantage. Here's what the hidden agenda might state:
1) Annual Fee: Many a low APR credit card might offer you a low
interest rate or APR but require you to pay a significant annual
fee. If the effective interest rate (after counting the annual fee)
is indeed higher than the actual rate, then this credit card is
obviously only cloaked as a low APR credit card.
2) Low
Introductory Rate: Credit card companies know that low introductory
rates are a great promotional incentive. So when suddenly, the
initial period expires, and your monthly minimum payments mount
dramatically, you know something definitely smells fishy. Check it
prior to applying before you fall prey to this credit card company
trick.
3) High Balance Transfer Fees: Another trick in the
trade is that some amongst the low APR credit card fraternity offer
low balance transfer rates that come with significant fees. These
balance transfer fees are always mentioned in the fine print or the
terms and conditions but are rarely spoken loudly about in the
promotional language of the card.
Moral of the Story: Read
and re-read the fine print and all of the terms and conditions
associated with any low APR credit card before you apply.
Follow these simple steps when shopping for low rate credit cards:
1) Call the institutions in which you already have bank account or
credit card account. Discuss with them the possibility of converting
your existing account to one with a lower APR than you currently
have. 2) If your existing credit card company cannot indulge this
special request of yours, seek a company that will. 3) Get in touch
with the companies where you are interested in applying for low rate
credit cards. 4) After selecting the best card, fill out the
application and return as per the instructions via mail or online.
Make a call to the credit card issuing company if you have not heard
from them in the subsequent 10 to 15 business days. 5) You reserve
the right to obtain an explanation if the credit card company has
turned down your application. The denial letter must explain how you
can obtain your credit report to investigate the application denial.
More Tips On Low Rate Credit Cards
One of the strategies
that some people utilize to get the most out of their low rate
credit cards is to keep rolling over credit card balances to
different cards with 0% introductory APR offers until successfully
paying down the card balance. But beware of this particular
strategy. Make no bones about it though; this strategy takes time
and discipline and a high degree of diligence and meticulousness in
keeping exact records.
Credit card issuers reserve the
lowest interest for customers with the strongest credit histories,
so, as always, try to maintain a clean credit history.
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