Look for the Lowest APR Credit Card Rate
Finding the best credit card rate can make a huge difference in the total interest that you pay on your bills. For those who carry a balance, transferring high interest balances to a card with a 0% introdutory rate can generate valuable savings. Do you carry a balance from month to month? If so, then your credit card’s APR (annual percentage rate or interest rate) is important to you. Even a small difference in the APR can make a big difference in how much you will pay over the course of a year.
The average family has $10,000 in credit card balances. If you carry that much of a balance, and you pay 16% APR, then you are paying $1600 in interest each year. If you transfer these balances to a 0% balance transfer credit card, then your savings are quite substantial.
What Kind of a Credit Card Balance Will You Carry?
Determining which credit card comparisons are best for you depends on how you will use your card -- for purchases, balance transfers, credit card checks, ATM withdrawals, etc. Decide on which purposes you expect to use your card for the most. Then look for the card with a low APR for that type of balance.
Some people even take out more than one credit card to suit each different purpose. For instance, you might want one card with the lowest APR for ATM withdrawals, while you might choose a credit card with an introducory 0% balance transfer rate for your balances.
Should I Choose Fixed APR Card vs. a Variable APR Credit Card?
A fixed rate credit card means that the APR does not change very often. When it does change, the credit card company must tell you before increasing the fixed APR.
A variable rate credit card means that the APR will change from time to time. Usually, the rate is tied to another interest rate, such as the prime rate. As the other rate changes, your rate changes, too. For instance, you may see a credit card offer that says the APR rate is “prime plus 7.9%”. If the prime rate is 5%, then your rate will be 5% + 7.9% for a total of 12.9%. Look for information on the credit card application form and terms and conditions to see how often your card’s APR may change.
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