Best Interest Rate Credit Card
Info article on getting the best interest rate on your credit card
The APR and the "service agreement" will help you find the best interest rate credit card
Do cards have one APR rate ?
Credit cards can have more than one APR. The highest APR's are usually for cash advances and when you move your balance to another card. The lower rate tend to be for purchases. Typically a card could charge 9% for purchases, 12% for cash withdrawals and a higher 14% for balance transfers. This is just an example, there are cards that change even higher rate than this !. Read the service agreement carefully, weigh all these APR's up to help you decide if this is the best interest rate credit card for you
What happens if I'm late with my payment ?
This is where the penalty APR is applied and the rates are listed in the "Agreement Contract" which you probably didn't read. For example if you were late in your monthly payments more than once in a 6 month period they could apply a penalty APR. They can even apply this rate if you were late on another card you own.
Are there different APR's on the same card ?
There can also be a combination of APRs applied to different amounts on the balance. A card could easily charge an APR of 12% on a balance below $500 dollars, 18% on a balance that's in between $500 and $1500 and 22% on anything above $1500
The introductory Rate
This is a teaser rate to hook you in which will expire eventually and will be taken over by a higher rate
Cards can promote a delayed APR
For example "no interest" until January next year
"Variable" or "fixed rate" APR. Which is the best credit card interest rate ?
Fixed rate generally don't change but in some cases they can !. The credit card company by law must notify customers before the change increase or decreases.
Other credit cards are "variable rate". This means that the rate can go up and down at any time. Depending on the where the money is borrowed from, the economy, your service agreement etc. (the agreement is like a contract–it lists the terms and conditions for using your credit card).What seems like the best interest rate credit card at first may change after reading the agreement.
Do cards have one APR rate ?
Credit cards can have more than one APR. The highest APR's are usually for cash advances and when you move your balance to another card. The lower rate tend to be for purchases. Typically a card could charge 9% for purchases, 12% for cash withdrawals and a higher 14% for balance transfers. This is just an example, there are cards that change even higher rate than this !. Read the service agreement carefully, weigh all these APR's up to help you decide if this is the best interest rate credit card for you
What happens if I'm late with my payment ?
This is where the penalty APR is applied and the rates are listed in the "Agreement Contract" which you probably didn't read. For example if you were late in your monthly payments more than once in a 6 month period they could apply a penalty APR. They can even apply this rate if you were late on another card you own.
Are there different APR's on the same card ?
There can also be a combination of APRs applied to different amounts on the balance. A card could easily charge an APR of 12% on a balance below $500 dollars, 18% on a balance that's in between $500 and $1500 and 22% on anything above $1500
The introductory Rate
This is a teaser rate to hook you in which will expire eventually and will be taken over by a higher rate
Cards can promote a delayed APR
For example "no interest" until January next year
"Variable" or "fixed rate" APR. Which is the best credit card interest rate ?
Fixed rate generally don't change but in some cases they can !. The credit card company by law must notify customers before the change increase or decreases.
Other credit cards are "variable rate". This means that the rate can go up and down at any time. Depending on the where the money is borrowed from, the economy, your service agreement etc. (the agreement is like a contract–it lists the terms and conditions for using your credit card).What seems like the best interest rate credit card at first may change after reading the agreement.
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