Low Ongoing APR Credit Cards
When you use a credit card on a regular basis, having a low, ongoing annual percentage rate (APR) is critical. While many credit cards advertise low introductory interest rates, they often times adjust to a much higher rate after the introductory period is over. While having a low introductory rate could be beneficial, it will only last for a limited time. After that initial period, you could be left to pay a high interest rate on the balance of your card and your future purchases.
Check the Agreement
When you sign up for a new credit card, the credit card company may advertise the introductory rate. In some cases, you may get a zero percent interest rate that lasts for a year on all new purchases and balance transfers. In these situations, the credit card company will promote that zero percent rate quite a bit. However, it’s up to you to check the ongoing APR to make sure that it is acceptable. When you apply for a new credit card, you should be able to read the terms and conditions of that particular card. On the cardholder agreement, it will list the ongoing APR so that you’ll know what it is before you apply. If the rate is too high, you should keep looking for another card to sign up for.
When to Use
If you are the type of person who plans on leaving a balance on their credit card, having a low ongoing APR is important. This means that you’ll be paying interest to the credit card company regularly, and you want the card to save you as much money as possible. If you are the type of person who always pays off their credit card bill every month, in full, you don’t really need to worry about the ongoing APR as much. In your situation, the annual fee is probably more
important to consider.