Best APR Credit Cards – Discover True Value
It goes without saying that the best APR credit cards are the cards with zero interest rates ad infinitum. Since we live in the real world, it’s not possible although you can always settle for the second best – credit cards with a low to zero APR within a specific period of time.
No matter the issuer and the type of credit card, you will be required to pay for interest rates on the use of plastic. The only difference will be the rate of interest imposed on the credit card.
What is APR?
But before you can appreciate the value of the APR in choosing the best credit card, you have to know the basics. First off, APR refers to the annual percentage rate, which means that it is the rate of interest imposed on financial transactions made on the credit card. Thus, whenever you make a purchase, take out a cash advance or acquire a balance, the issuer will add on the prevailing APR on said transactions.
Depending on the credit card, you may have to pay a low to zero APR within a certain time period and within certain limitations. For example, a low teaser rate will be offered to individuals desiring to transfer balances from an exiting issuer to a new issuer. In most cases, these are the best APR credit cards in the market.
Or it can be that the low interest rate will be offered for six months to as long as 18 months. As can be expected, there are fine prints to take note of especially where adherence to strict payments is concerned. If you so much as miss one day of payment due, the normal – and higher – rate applies to your credit card transactions.
What Are the Factors to Consider in Choosing?
You are well advised to choose the lowest APR on the credit card. Then again, you should also consider other factors since the APR is not the be0all and end-all of credit cards.
First, you have to ask about the annual fees involved in the issuance of the credit card preferably from the issuer’s representative. You will be unpleasantly surprised to find that high annual fees are included in the computation of the APR.
Second, you must be aware of the expiry date, in a manner of speaking, applicable to the low to zero APR. You may want to watch your spending habits when the expiry date looms lest you be shocked by the almost sudden rise in the monthly balance, no thanks to the higher APR.
And speaking of monthly balances, it will be to your advantage if the credit card issuer provides for a grave period at the end of the month within which to pay it. This way, you will be able to save the money on the waived extra charges.
Third, your chosen credit card should also offer rewards in many forms. We are talking about points for travel, airline miles, fuel savings, hotel stays, and discounts on purchases, cash rebates and other perks of the card.
Basically, you have to understand the terms and conditions that go with the low to zero APR. If something appears unclear, ask before signing your name to the contract. With your diligence, you should be able to get the best of the best APR credit cards.
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