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How to choose a low APR credit card?

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Low APR credit cards are the best answers to most of the financial problems that people face today. Most people find themselves in huge debts and are desperate to find a solution. They feel that a 0% interest or a low interest card is the solution to all their problems. Although this might sound very tempting as the credit card issuers make the whole package look very interesting, this might not actually be the scene. In reality, this might just be the start of all the troubles in future. There are a few pros and cons that one needs to follow:

• First, read through the fine print and understand all the terms and conditions thoroughly. The low interest rates will most often remain for a certain period of time, usually the first year or so.

• From then on, the rates will increase and might possibly be higher than what they were paying on their current cards. This is a method used by card companies to recover losses.

• If there are late or missed payments, the issuer will charge fees and this might also have a bearing on the credit rating.  The low APR will be then be removed, and the interest rates will be hiked higher. With this now happening, you will not only be paying higher interest, but also being charged the late fees.

• Low rates are usually applicable on fresh purchases and it is usually not available on balance transfers or cash advances.  In fact, cash advances have an even higher rate in combination with the other fees.

The best option is to shop around and apply for the cheapest card and ensure that you have read and understood all the information.  Take some help from a financial advisor as that would help save a lot of money in future.  Stick to timely payments, as that is the key to saving money. Try to clear off balances during the grace period.

Most often, these promotions don’t really benefit the customer, and end up being more of a problem in the long run. Credit card companies are there to make money, and one must always bear that in mind, before taking a step in any direction.

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