APR
November 19, 2008
If you do decide to get a credit card, one of the most important things to look at what interest rate the card has, otherwise known as the Annual Percentage Rate (APR).
The interest rate on a credit card decides how much money you will be charged each month for borrowing on your card. The lower the interest the rate on the card, the less you will be charged each month.
Interest rates can differ widely. Some credit card firms can have special introductory rates of zero percent, which means you won’t be charged for using it. But if you do apply for a card with a low rate, always read the small print and find out how much the interest grows to when the special offer runs out. Remember, once the introductory offer period has expired, interest at the normal rate will become payable.
(No Ratings Yet)
Loading ...Comments
One Response to “APR”
Got something to say?
Don’t forget to Make it a regular practice to call your credit cards to ask for a lower rate. I have one client who owes over $20,000 on a Visa that was at 18%. He spoke with a ‘rate specialist’, touting his rising credit score and declining balance and got his rate cut in half, from 18% to 9%! His monthly interest charge was instantly reduced by $150, which will help him pay off his debt even sooner. Sometimes, even after the ’special offer’ has run out, you can get a better rate just by asking.