Tips for Finding the Best APR Credit Card
No doubt about it, we all like to get a good deal. And when it comes to credit cards, that means finding the best APR credit card. That’s the conventional wisdom anyway. But in reality, it isn’t always the case.
Interest rates alone do not dictate the full cost of credit. Fees play a large role as well. In fact, fees are now becoming more and more popular amongst banks and credit card issuers as they scramble to create new streams of revenue.
Because of the credit card reform legislation many financial institutions that issue credit cards have been denied one of the most profitable tools. What I’m speaking of is the inability for them to raise the annual percentage rate on existing balances of cardholders.
Interest rates can still be raised on new purchases, but existing balances are protected as long as the cardholder abides by the terms and conditions of the offer. That means they must pay on time and remain a customer in good standing.
Fees, however, are a different story. Banks and credit card issuers are becoming evermore resourceful and coming up with new fees to levy on their account holders. The latest was introduced by Citibank cards where they charge all account holders a $60 annual fee.
If the cardholder charges in excess of $2400 in a single year, the $60 will be credited back to the account. It is a form of incentive, if you will, to get their customers to use their cards. Some issuers, including American Express, have actually closed accounts because of inactivity.
So as you can see, even if you happen to find the best APR credit card on the market, it still may not be the best deal. There are other factors to consider besides the annual percentage rate.
Also keep in mind that while rewards programs are very popular, especially cashback rebates, they are often accompanied by fees. Travel rewards credit cards have especially high fees because their programs are rather expensive.
Finding low interest rates is certainly important, especially if you carry a balance. But as we have discussed, they are not the only consideration. Take advantage of a credit card comparison website to find the best APR credit cards and from there the site which features and benefits best fit your financial needs.
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