Why It Is Important To Have a Good APR on Any Credit Card You get.
If you have the intention to get a credit card any time soon, there are certain factors you must look at. First and foremost on the list is definitely the APR value. The APR is another word for the annual percentage rate.
The APR in simple terms refers to the interest rate that accrues to you when you prolong the payment of your balance on your card.
Understanding the importance of the value of your APR will enable you to make the best decision about getting a credit card. With it, you will know whether you really want to go ahead with the credit card arrangement you already have or get busy scouting for something better—a card that will bend gut you more as you make facilitated payments with it.
A credit card could possess different kinds of APR value dependent on the type of balance in question. Balances that involves payment for purchasing something, as well as those involving transfers are mostly low compared to balances involving cash advances. This particular rate is usually a little higher value.
Assuming you are unable to Make payment in your credit card balance until up to a period of 60 days, it becomes late. In that case, you are expected to pay an extra charge APR on your credit card. I hope you know that? This charges will continue to accrue to you until you are and to demonstrate credit wordiness–by making your next 6 payment consistently, and as at when due.
Now it is very easy to know the APR value of any card up you are presently using. All you need to do is to go to the official website of the company that issued you the card in the first place. Another option will be for you to log in to your personal account with the credit card company or alternatively, you can use their monies app.
You can not just go straight to get a credit card company you barely know anything about. At least you need to be aware of their mode of operation, terms, and conditions as well as their rates and pricing values. With that, you stand a better chance of making a more accurate decision. Remember, research always gives you an edge in whatever you do.
How do you know when the APR value of a card is good?
As time goes on, credit card APR will increase in value, as a result, even say you know as a good APR value will not remain static but will keep increasing with time. According to the usually published by the nation, as at February, the APR general average for credit Card is at 15.9%. Now, for accounts with access to interested, the normal APR rate is like 16.51%. So, any credit card with an APR value of less than say, 17.59% can be generally regarded as a good APR rate.
It’s also important to realize that as soon as the federal ingress rates evolve, it will directly affect the APR value of Credit cards. Obviously, it depends on other interest rates as well. One of such rates is what is known as the prime rate. This prime rate is the rate obtainable in banks. So for all those using credit cards, know that as soon as the federal government rate improves, then the other rates including the APR of credit cards will also increase.
If your credit score is great, it gives you leverage in access a lowest APR rate that could be accessible to any customers considered a good customer.
Although it is very difficult to find a credit card with one digit number as its APR value, yet it is reliable. Apart from the low rate, this type of card could hardly have any more perks. On a more general note, credit cards made available by Credit union have the tendency to have a low-interest rate. However, this is specifically
Although it is possible to reduce the APR rate of your card by ensuring that you complete your payment as at when due, however
It is still very vital that before you get any card that you find out how good the APR value really is.