Low APR Credit Card Offers
Over the past year interest rates have declined significantly. However, credit card interest rates have actually increased, with the average rate hoovering around 14-15%. Fortunately, a number of credit card companies offer low APR credit cards with rates that are lower than the national average. This would be great if getting approved for a low APR credit card was straightfoward. The complicating factor is that credit card companies offer different interest rates to different consumers based on internal credit reviews. Consequently, many credit cards that advertise low APRs may not truly be low APR credit cards. One way to make sure you get a low interest rate in the near term is to apply for a credit card that offers a 0% APR on purchases and balance transfers for a year. With a 0% APR credit card, you can defer all interest costs. This not only puts more money in your bank, but can also help you pay down high interest credit card debt faster.
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About the Best Low APR Credit Cards
When comparing low APR credit cards, it is important to look at all the interest rates offered by the issuing credit card company. Most low APR credit card offers come with multiple long term interest rates. Generally, the lowest APR is granted to applicants with the best credit scores. With some credit card applications, if you fail to qualify for the lowest APR, you may end up with an interest rate that can be four or five percentage points higher.
The key to getting a low APR credit card is to seek out credit cards that offer a range of interest rates. When you apply for a credit card that offers interest rates between, say 12-19%, if you don't qualify for a 12% rate, you may qualify for a 12.25% rate. With cards that only offer two or three rates, if you fail to qualify for a 12% rate, you may end up with a card that has a 16% or even a 20% APR.
Unfortunately, nearly all credit card companies don't reveal what your long term interest rate will be until after they have processed your credit card application. Thus, a good way to insure that you get a low APR credit card, at least for the short term, is to apply for a 0% APR credit card that also has a low APR. If you end up getting a higher APR than you would like, you can take advantage of the 0% period to pay down debt and, if necessary, do a balance transfer once the 0% APR period expires. |
Articles Related to Credit Cards with a Low APR
Tips to Find the Best Low APR Credit Card: Low APR credit card offers can be confusing. The lowest APR credit cards often come with multiple rates and applicants that do not meet the highest credit card approval criteria may be approved for a credit card, but not offered the lowest interest rate advertised.
Low APR Credit Cards Today: Despite an historically low Prime Rate, low APR credit card offers carry significantly higher APRs than they did two years ago. One method to avoid these higher interest rates is to take advantage of 0% credit card offers. Another is to repay credit card debt as quickly as possible.
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