Types of Credit Cards
What are low APR credit cards/0% APR credit cards?
To understand what a low APR credit card or 0% APR credit card is, you must understand what the APR is and how it is calculated. The Annual Percentage Rate (or APR) is the rate of interest you are charged, shown as a yearly percentage. When you open a credit card account, you agree to pay interest on any balance you carry over to the next month. The APR is a very important number when looking for credit cards. Keep in mind whether you plan to carry a balance on your credit cards or not. If you do not, then a high APR might not bother you. However, most people have at least one month in which they carry a balance (often around the holidays or right after) and a high APR is an important consideration when choosing a credit card.
If you are considering transferring a balance, you will want a special credit card to do that. You cannot do that with just any low APR or 0% interest APR card, you must use a balance transfer card.
You can use our comparison tool to see the best low APR and 0% APR credit cards and what they offer you. Always shop around to see the best credit card for you.
See also:
How do I do a balance transfer?
What are the finance charges? How are they calculated?
What is the difference between a variable APR and a fixed APR?
Last update: 2006-09-25 18:26
Author: BKO
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