APR typically means Annual Percentage Rate to measure the expenses over a credit card that is expressed as an annual rate. Recently, this is the most sought after credit card and it is presented in two types; the fixed or a variable card. Among these, the variable low APR credit cards are the most offered ones. These cards are usually introductory cards during balance transfers where you will be charged low interest, or at times 0 interest rates valid for a set time. This time may vary anywhere between 6 months and 1 year.
However, there will be a transaction fee for transferring the balance from one card account to another. These low APR credit cards have their own benefits of you qualifying for rewards or obtaining a good balance transfer and much more. Look out for the option of balance transfer when you opt for a low APR card. Also make sure there are no annual charges or any other hidden charges. Make sure you are explained in detail about all the charges, offers, and rewards by the company.
Note that the low APR card or 0 APR is not applicable for any purchase or cash advance. Once the set period of the APR is over, the rates will revert back to normal standards that are applicable for the prevailing balance transfers. Now, the APR will change to a variable prime rate of interest on every balance transfer and purchase. You will additionally be charged a minimum fee every month.
The advantage of the low APR credit card is that it has no annual charges and it helps you save day-to-day expenses on gas, grocery, and similar things. Some of the best companies for these cards are the American Express Low Interest cards, MasterCard Low Interest cards, Visa cards, Wired Plastic cards, Discover card etc. Some of the best offers of these low APR cards are the cash rebates, new automobile rebates, gas discounts, business cards, prepaid debit cards, etc.
Few reasons why you can opt for a low APR credit card are:
- A way to procure an expensive item and pay at your own pace
- Low interest rates
- Balance transfer offers with 0% to 3% rate up to one year
- Some of the best rewards offered
- Low introductory rate of interest
Remember that you can make negotiations with your credit card provider on the APR rates in case you feel it is high.