Shopping had never been lousy since the advent of credit cards. Since then, people had always been indulging into various cashless shopping due to the convenience of the credit card.
The Common Misuse of Credit Cards
However, most people get credit cards only for the sake of shopping. They do not even read the fine print on their credit card and the least that they have considered is the one with the low annual percentage rate or APR. Most of them did not even know how interest rates could affect their billing.
What Are Low APR Credit Cards?
On its general since, low APR credit cards are those that have lower APR. This means that the cost of the interest rate will be according to the purchases obtained by the customer.
Normally, APR vary from 6% to more than 30%. Of course, it would be clear that the card with the lowest APR credit card is those that have 6% or lower.
Tricks of Low APR Offers
But consumers should remember, that APR can be very tricky especially if the consumer have no idea what interest rates mean.
Basically, credit card companies would offer the consumers very low APR credit card so as to get the consumers on the hook. In fact, credit card companies could lower their APR to as much as 0%.
Low APR credit cards are usually expressed during the introductory rate so as to entice new credit card holders to sign up to them; and once they are all hooked up, the credit card company would start changing and increasing their credit cards.
Types of APR: Fixed and Variable
People should know what makes a low credit card really low and the best option for retaining that low APR even if the introductory offer is over.
First, they should know that APR has two faces: the fixed and the variable.
The fixed APR has more stable interest rates than variable rates. Variable rates, on the other hand, can start really low but it all depends on the prime rate of the Federal Reserve. This means that at any point in time, it may increase.
Why Low APR Cards Are Rare
Needless to say, there are really quite a few credit cards that have low APR. The reason behind it is that APR is actually where the credit card companies get to earn a living. If they continue to give people the low APR that they used to claim, chances are they wouldn t be in the business for so long.
Final Thoughts on Low APR Cards
The bottom line here is that consumers should be really conscious on their APR and other interest rate. Low APR credit cards will not be very beneficial if it will only last for 6 months or so.
