Credit Cards and Low Apr

Despite the often bad publicity credit cards receive, they are extremely useful, but the amount of interest you pay can be a deciding factor on whether or not a particular card will be of benefit or not. If you are not in a position to pay off the balance on your credit card when the statement comes in each month then you will need to find a low APR credit card to help manage the payments.

Basically, APR is the cost of credit as a yearly interest rate and stands for Annual Percentage Rate of charge which can be used to compare different credit and loan offers. The APR on credit cards is usually calculated monthly based on the current amount in the card and the monthly interest is calculated as if the current card balance would remain the same over a year; the interest on the amount over a year (APR) is worked out and divided by 12 to give the monthly interest. Financial laws require that the user must be aware of the figure and agree to it before they are provided with the credit card.

The lower the APR the lower the amount of interest they pay on their goods but this is not the only factor to consider when applying for a low APR credit card. Anyone who is in need of reducing their monthly expenditure will find this type of credit card an advantage and while there are other charges to look out for this will be the biggest contributing factor in the cost each month.

If you are considering a low APR credit card then the first place to look is on the Internet. People on stricter financial budgets will be better off with a fixed rate credit card as the interest rate will not vary and will help better manage their financial commitments each month.

Be aware of other fees and charges that might be added, although some are voluntary like the inclusion of a payment insurance which can guarantee the monthly minimum amount owing will be paid. Not every low APR credit card will be suitable as some of the other fees that are paid may not suit you situation so check into what you will be expected to pay in advance.

You will probably need to compare a number of credit cards but many websites can provide this information with a table that provides the overall amount each will cost on a yearly basis. Some credit cards will ensure you are protected from unauthorized spending on your card and offer a zero percent interest rate for a number of months on almost everything you can use the credit card for including transferring a balance from another card.

Many credit card companies actively participate in promoting the transfer of balances and sometimes they will offer a zero rate on these as well for a limited period. There are many uses for a credit card and some people only use them to improve their credit score after they have had financial problems.