When it comes to credit cards, the APR or annual percentage rates is always the ultimate source of confusion and chaos for most credit card users. If you dont have a credit card but planning on applying for one or you were just recently approved for a credit card then you must definitely read this article. Everything about APR of credit cards shall be explained so read carefully and remember! Whats APR? Basically, the APR or annual percentage rate of a credit card is the combination of low interest rates and finance charges. With that said, lets move on to the next topic. Are There Really Zero Percent (0%) APR Intro Rates And What Does It Mean? Lets say you already own a credit card and youve used up most of your credit already. With a 0% APR intro rate credit card, you can transfer your balance without incurring additional interest. Nice, isnt it? Also, if youre planning to purchase something but paying it off before the intro period is over then yes, having a 0% APR intro rate credit card is the best option for you. Remember, the keyword here is intro which indicates that this is only something like an introductory offer so dont expect the 0% APR to last forever. What About Low Interest APR Credit Cards? If youre in search for a credit card with long-time charges then its better to go for a low interest APR credit card rather than one with a 0% APR credit card because the interest rate would just revert to normal for the latter. Which One Is Better: A Low Interest APR Credit Card Or A 0% APR Credit Card? Well, this question would require you to research a bit but since your decision will ultimately affect your finances then its better to go ahead and research, right? The first question you have to ask your credit card company is about the length or duration of the intro period if youre interested in availing yourself of a 0% APR intro rate credit card. The intro period usually lasts between three to fifteen months. Anything less is naturally a disadvantage and anything more is preferable. Ask also about what the APR of the credit card is going to be after the intro period. If the interest rate is higher than the APR of other credit cards that do not offer 0% APR for a certain period of time AND youre not planning to maximize the 0% APR youre given then maybe, its better to simply go with a low interest credit card. |
