With the advent of the Internet, hunting for less APR credit cards has become easy, where you can draw an easy comparison (with different options available to you on click of a mouse), for which low APR credit card will be the best for you Is required. The article below provides a complete informative downdown on the lower APR credit card.
The lower the APR credit card you charge less than the standard APR. The lower the interest rate or APR, the lesser the card will carry and the more money you save. So if you take a large monthly card balance, then lower APR credit card can be very beneficial for you, and in some cases where low rate credit cards are provided, they will save important dollars with cardholders over time. Can also help. What is an APR anyway? Well, let’s discuss …
The logic of low APR credit card
The annual percentage rate (APR) is the cost of credit; This is the amount of interest rate which is applicable to any outstanding balance on the credit card. If you do not make full payment within the grace period certified by the credit card company, then the company has the right to charge for the service, which is the interest rate charge known as APR. But for credit card to be considered cheap for consumers, there should be less APR in it.
With less APR credit card, an agenda comes in fine print. Less creatures like you and I fail to recognize it and read it for our benefit. Here’s what the hidden agenda can say:
1) Annual Fee: Very few APR credit cards can provide you low interest rate or APR, but you need to pay a significant annual fee. If the effective interest rate (after calculating the annual fee) is actually higher than the actual rate, then this credit card is clearly worn as just a low APR credit card.
2) Short introduction rate: Credit card companies know that low initial rates are a great promotional incentive. So suddenly, when the initial period ends, and your monthly minimum payouts dramatically mount, then you know that some definitely smell the fish. Check this before applying this credit card company before being victim of the trick.
3) High balance transfer fee: Another move in business is that some of the lower APR credit card fraternity offer some significant balance rates that come with important fees. These balance transfer fees are always mentioned in the right print or the terms and conditions but the card is rarely spoken in the promotional language.
Moral of the story: Before applying, read good print and all the terms and conditions associated with any low APR credit card and read it again.
When shopping for a low rate credit card, follow these simple steps:
1) Call the institutions in which you already have a bank account or a credit card account. With them you currently have a discussion with the possibility of changing your existing account with an existing APR.
2) If your existing credit card company can not include this special request, then search for a company.
3) Stay in touch with companies where you are interested in applying for a low rate credit card.
4) After selecting the best card, fill out the application and come back in accordance with the instructions through mail or online. If you have not heard from them in 10-15 business days, call the credit card issuing company.
5) If the credit card company has closed your application then you reserve the right to get the clarification. The Disclaimer Letter should explain how you can get your credit report to check the application’s rejection.