Understanding Credit Card Apr

If you have a credit card or are looking to get one, it is important that
you understand the ins and outs of credit card APR. Credit card APR is the
biggest factor in determining how much you pay for your credit card, and so
to get the best deal you need to know what it is and how it works. Here is
some advice regarding the ins and out of credit card APR.

What is APR?

APR stands for Annual Percentage Rate, and is a measure of the cost of the
credit you borrow. The APR is the amount that you pay yearly in interest on
the money that you borrow on your credit card.

How much is credit card APR?

Credit card APR can vary massively depending on your financial situation,
the type of card you want and the deals on offer.
Generally, credit card APR ranges from 10-18%. If you shop around then you
will find the best deal for your needs.

How do I find out the APR?

Credit card APR is very easy to find out, and all lenders are required to
tell you the APR of a card before you sign up for it. Also, credit cards are
generally advertised by the cost of their APR.

Comparing APR

If you are trying to find the best credit card deal, then there are many
places online where you can compare the various APR rates of credit cards
from different lenders. Although there are other costs involved with credit
cards, generally a lower APR is better.

O% APR deals

If you are looking for a credit card, then you might see 0% APR credit card
deals advertised. Although many of these deals are not what they seem to be,
there really are some great introductory offers to be had. Some cards do
offer 3 or 6 months with 0% APR, meaning that you can use your credit
without paying any interest during this period. This gives you basically
free credit, providing that you pay it back in this time.

Drawbacks of 0% APR

The drawbacks of these deals are that there are often hidden costs involved,
such as high fees if you miss payments or go over your credit limit. Also,
once the 0% period ends the credit card is generally has a higher APR rate
than other cards. To use 0% APR cards to your advantage, you should look for
one that has a fairly low rate after the initial period, or swap cards once
the 0% period ends. If you invest a little time and effort you can skip from
0% APR to 0% APR on various cards.
Of course, this can make you look financially unstable so you should be
careful when swapping cards frequently. However, if you understand APR rates
then you will be able to find a great credit card deal.

About The Author: Peter Kenny is a writer for creditcards-gb Please visit us
at http://www.creditcards-gb.co.uk and
http://www.thriftyscot.co.uk/Credit-Cards/