Fundamentals of a low APR credit card

If a credit card is used in the right way it is a most useful financial tool. The problem is that many don't have the income to be able to afford the burden of high interest rates that come with most offers.

A good solution for those with less disposable income is the low APR credit card. They also work well for anyone who plans on carrying a balance every month.

For those who are not familiar with the term APR means annual percentage rate. It is the percentage you pay yearly on your card. It is converted to a monthly percentage to figure the amount of interest you pay on your balances every month.

An easy way to figure your monthly rate is to take the annual percentage rate and divide it by twelve. Each credit card company must give the customer the APR they will be paying. Each credit card company will have its own terms and conditions.

Because of this it is important for consumers to shop around for the best offer. A consideration one must take into consideration when choosing and offer is some have fixed interest rates while others have variable ones.

Why should you use a credit card with a low APR? The answer to that is that it helps those with a smaller budget. In addition it frees up cash that can be used to pay bills or other needs.

Anyone interested in getting a card is faced with a large number of options to choose from. Most all of these can be found online with each of their benefits listed for the consumer.

Here are some questions one should ask when they are looking for a low interest credit card.

1. It it a variable or fixed rate offer? If it is variable you can expect your monthly payments to fluctuate.

2. What if any other charges or fees does it come with?

3. What are the terms and conditions of the issuing company?

Some companies will also have offers where there is 0 percent interest for a certain period of time. After that time has expired the consumer then has an increased rate. Other offers will have no annual fees.

Those with high balances on their other cards can take advantage of the low APR credit card offers and save money by transferring their balances from their high interest accounts.

Finally these kinds of credit cards can be used to build up your credit score which will help with funding college, purchasing a home and even finding good employment.

Two things you should do before applying though is to assess whether your finances will be able to handle the payments and also find the best deal for your needs.