What does one need to know about low APR cards and... - Other Questions

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » What does one need to know about low APR cards and its disadvantages?

What does one need to know about low APR cards and its disadvantages?

Answered on

Low APR cards have a low annual percentage rate of interest on the total outstanding balance. Credit Card companies apply these charges after calculating the interest on the total outstanding.

While it would be a good idea to opt for a card with low APR one has to ensure that there are no balances carried forward and there are no missed payments. Ensure also, that the low interest rates offered are not just for the introductory period. Sometimes the companies will only offer these low interest rates for six months to about two years. After that period is over the interest levied by these card companies could be much higher than its initial offer.

An important point to consider in low APR credit cards is the annual fee that would be charged. Cards that charge an annual fee do not have an introductory period thus enabling the low APR for life.

One would benefit from these cards, only if the annual fee is a very nominal amount, and the rate of interest is low. If not, the savings made by the huge annual fee would negate the low APR`s. Reward programs are not normally attractive on low APR credit cards. For those companies, which do offer, an annual fee is levied. Each individual has to decide if paying the annual fee to get rewards is a good proposition or not.

There are some companies that offer low APR cards, however these do have a variety of conditions. For instance, for an individual who makes timely payments and has a good credit score, it would be easy to avail a low APR card. However, more than a couple of missed payments or balances carried forward could mean that the low APR would be revoked and a fine would be imposed for the late payment.

Though low APR cards help save money, there are many terms and conditions that are applied on these cards, so an informed decision must be made before choosing.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit

Other Questions in
Other