Various APR Features For Credit Cards |
 |
|
|
|
Since we all know that there are virtually as many different
credit card companies as there are stars in the sky, finding the
one that works best for you and your needs can be a bit tricky.
All credit card offers will come complete with a list of
features that are supposedly exclusive to that card. In
actuality, most of the cards offer about the same set of
features with a slight variation. All will mention the APR and
knowing what and how that works is vital.
APR stands for "Annual Percentage Rate". It is the amount of
money that you will pay, expressed as a percentage, for the
privilege of charging purchases and carrying a balance.
The All Important APR
|
|
|
This is a biggie. The APR can drastically change your ability to
pay off your card, particularly if you carry a balance. The APR
attached to the credit card can vary not just from card to card
but also from how and what you purchase.
If you are looking to obtain a cash advance on your card, be
aware that the APR here will usually be the highest. The APR for
purchases is usually right on it's tail, though. For example,
for a cash advance of $200.00 the APR may be as high as 23%.
This is a whopping amount of interest to pay on a relatively
small amount of money. For purchases, however, the APR may be
more like 19%. Still pretty high for the convenience of not
using cash. That's why it's usually best to use credit cards for
emergencies or for purchases that you intend to pay for in full
at the end of the month. |
|
APR's can also vary according to how much of a balance you carry
on your card. These are called tired APR's because the APR
depends upon which balance tier you are at on any given month.
For example, a balance of $0-$2,000 may be subject to an APR of
14% while a balance of more than $2,000 has an interest rate of
18%. Again, it pays to keep your balance lower on these types of
cards.
Then there's the penalty APR. This happens when you make late
payments regularly (meaning more than once in credit card
lingo). Your APR can be raised and will affect your entire
balance. Moral: Make your payments on time.
The most popular marketing tool used today by the card companies
is the introductory APR. This is a significantly lower interest
rate on transferred balances and purchases made during the said
introductory period. This is beneficial if you carry a high
balance on another card at a high APR and can transfer your
balance, giving you the opportunity to put more of a dent in
that balance during the intro period.
One thing to look out for, though, is the future APR (or delayed
APR) that kicks in when the lower rate expires. This rate can be
significantly higher than the intro rate they are offering.
So remember, pay attention to the APR and know what rate will
come into play for the card you are looking at. Make your choice
wisely and be cautious!
Don't be left out in the cold with your current credit card. Zero worries. Zero hassles. Zero % Balance Transfers. Apply Now!
Read More... 
|
|
|
|
|
|
 |
|
More Credit Help |
|
|
|
|
