mortagesandforeclosures

by Bob Jones

If a credit card is used cleverly, it is one of the most powerful financial tools. But not everybody can afford to pay the expensive interest rates that most credit card issuers offer. This is where low interest rate credit cards can assist people who plan to keep a balance on their account and not to repay the full amount monthly. But, what does interest or APR stands for when talking about low interest rate credit cards?

Basically, APR is the charge for credit as a yearly interest rate. APR stands for "Annual Percentage Rate" and can be used to compare different credit and loan offers. The APR on credit cards is usually calculated monthly based on the current balance on the credit card.

The monthly interest is calculated as if the current card balance would stay the same over a year; the interest on the amount over a year (APR) is worked out and divided by 12 to get the monthly interest. It is a must that all lenders tell the client what their APR is before signing any agreement.

Although the terms and agreements may differ from one lender to another, it is better to get low interest rate credit cards because the lower the APR, the better it is for those who like to spend more money shopping wherever and whenever they want.

Why ought you select low interest rate credit cards? Low APR credit cards are a great choice for those people who prefer stricter financial budgeting. The APR affects the balance over a period of time, it being the most important attribute of a credit card.

In low interest rate credit cards, the amount of interest one has to pay on his or her credit card balance depends on its APR. Therefore the lower the APR is, the better it is him or her because it means they have to pay less interest. APRs in low interest rate credit cards can either be 'fixed' or 'variable'.

If you intend getting low interest rate credit cards, there are many cards that offer low APRs to be found on the Internet. These low interest rate credit cards are chosen using a factoring scheme that organized these cards by computing a number of their attributes to place the best credit cards at the top.

One of the questions one has to ask when looking for low interest rate credit cards is about the charges: whether they vary or are fixed. If these charges are variable, they might affect the repayments and if these rate are fixed, the repayments remain the same. Searching for low interest rate credit cards should also include questions on the likelihood of any charges that are not included in the APR like optional payment protection insurance or an annual fee.

If there are any, make sure that you understand what they are and when you must pay them. Lastly, looking for low interest rate credit cards should include questions on the terms and conditions of the credit and how these conditions suit you.

If you are looking for low interest rate credit cards, you could begin seeking for a scheme that could save you hundreds in interest with a low interest credit card and low cost processing. Most low interest rate credit cards offer 0% APR for the first several months on purchases, cash advances, and balance transfers.

Low interest rate credit cards can offer rebates on certain items purchased. They also offer $0 liability on unauthorized purchases, and no annual fees. Some low interest rate credit cards have very good introductory rates for purchases. They also offer great deals if one carries high amounts on other cards and want to transfer the balance.

Indeed, having low interest rate credit cards can be useful and convenient, and can even assist build a strong credit history that will help you with future activities like home-buying, paying for higher education, and even getting a job. But, before you apply for low interest rate credit cards, consider the advantages and disadvantages especially with regard to the current financial situation you are in.

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