How To Know If A Low APR Credit Card Is Right For You
Do you pay your credit card balance off in full every month without fail? Or do you find that some months, itâ€™s difficult to deliver the total amount due, and you need to let some of it ride until next month? Perhaps you can only pay the minimum amount due, as interest mounts with each statement that comes into your mailbox.
If youâ€™re like most of us, there are some times when you just canâ€™t get your credit card balance down to zero. Life happens, unexpected expenses pop up, and having a line of credit is very handy in those circumstances. Thatâ€™s why a low-APR credit card is essential to have in your financial toolbox.
Why is a low APR important?
The annual percentage rate, or APR, on your credit card is how banks calculate how much interest youâ€™ll be charged if you do not pay your total amount due in a given statement period. The higher the APR, the more interest youâ€™ll pay over time.
Many credit cards offer a zero-interest promotional period when you first get a new credit card. During this time, youâ€™ll enjoy a zero APR on purchases and sometimes balance transfers as well. But once the introductory offer is over, your APR will adjust to the regular rate.
Getting the best deal on interest
The key to securing a low APR on your credit card is first to have good credit. The better your credit, the lower the interest rate youâ€™ll be eligible for. Even average credit is better than bad credit. But no matter your credit score, you can call your credit card issuer and request a lower APR. It may work, or it may not, but itâ€™s worth a try.
Having a low APR credit card is a good idea no matter who you are. Even if you pay off your balance in full each month, you never know when you might forget, or something may happen that necessitates paying interest on your balance. If you have a low APR credit card, youâ€™ll be glad when that time comes. Check your statement, call your credit card issuer, or log in to your account online to find out what your APR is today. Then, if itâ€™s not as low as youâ€™d like, apply for a new low APR credit card and start saving on interest.
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