If you‘re having a hard time meeting ends meet and at the same time have mounting debts with your credit cards, you might find Low APR credit cards to be very helpful. It is actually one quick way to have some money back into your pocket. This could save you hundreds of bucks if you’re paying high APR credit cards. The way to do this is to transfer your high APR account balances to an account that charges a lower fee or doesn’t charge anything at all!
APR Explained
The main gauge of how much you should pay for your credit card balances is the APR or Annual Percentage Rate. This determines your accounts’ total fees and interest rates, which you would have to pay in respect with the principal amount that you loaned. It is important that you understand the APR computation as this can greatly help you in managing your credit card finances.
Low to Zero APR Everywhere
Recently, it has been a trend for credit companies to offer low APR. In fact, there are those who offer absolutely zero APR! Companies do this because of competition. However, you should keep in mind that these offers do not last long. Most of the time, these are merely introductory offers. They usually last for approximately 90 days to one year. Hence, they are simply marketing strategies used to tempt customers into applying for an account with the company.
Understanding APR Rules
Before you commit yourself to a credit account, you should first understand all the terms and conditions which are related with its APR. There are some companies that have various charges for different transactions. Generally, APR for balance transfers are lower, compared to the rate charged for cash advances. Additionally, they may charge you a different rate as penalty if you pay late.
Fixed vs. Variable APR
Because companies are required to inform customers about their APR, it would be easier for your part to compare one company with another. There are companies that may offer fixed APR, while some offer variable APR. The fixed type is usually preset and doesn’t change without appropriate notice.
The variable APR constantly changes from time to another and highly depends with the economic index that is tied with. Some experts say that it is better to get a fixed account, since you wouldn’t have to worry about inflation. This way, you can be sure that the amount you have to pay is constant.
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