Many credit card companies today use the phrase
“low APR credit card” when advertising their credit
card offers. But what exactly is a low APR and why is it important?
The APR is the annual percentage rate that a credit card company
charges you to borrow their money when you make a purchase
on your credit card. This interest rate can vary from 0% up
to as much as 21% or more. The higher the interest rate you
have on your credit card, the more money you will end up paying
in interest. So as you can see, the interest rate you have
on your credit card is very important.
If you carry a balance on your credit card from month to
month, having a credit card with a low APR is especially important.
Since the interest is calculated on your monthly balance,
the higher the balance that you carry on your card, the more
money you will end up paying in interest. Even if you are
diligent enough to pay off your credit card balance every
month, there is always the chance of running into an unfortunate
situation like an illness or job layoff that could prevent
you from being able to pay off the balance in full each month.
That is why it is so important to have a low APR credit card
no matter what your situation.
With interest rates still near all time lows, the credit
card companies are constantly putting out better offers to
compete for your business. This is great news for you as the
consumer! This allows the consumer to be choosy when selecting
a credit card instead of having to settle for the interest
rate that they are given which was the case just about fifteen
years ago. Having a low APR credit card gives you more freedom
and control over your finances. Apply for one today to start
saving on your credit card purchases!
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