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Hunting for and selecting the very best low APR credit cards has become easier with the advent of the Internet where you can do easy comparisons (from the various options available to you at the click of a mouse) as to which low APR credit card will be the best for your needs.

Simply put, low APR credit cards charge you an interest rate even lower than the standard APR offered by most traditional credit cards. The lower the interest rate or APR, the cheaper the card is to carry and the more money you’ll save on it. Easy enough, right? So if you carry a large monthly card balance, a low APR credit card could be very beneficial for you. In some cases, low rate credit cards can help cardholders save a lot of money. But what’s an APR anyway?

The Rationale of Low APR Credit Cards

The Annual Percentage Rate (APR) is the cost of credit; it is the amount of interest rate that is chargeable to any outstanding balance on a credit card. If you don’t make the full payment within the grace period certified by the credit card company, the card issuer has the right to charge you an interest rate for the service, a fee known as the APR. For a credit card to be considered a “cheap” credit card it should have a low APR.

With a low APR credit card, there is always fine print in the terms and conditions to take note of. Commonly, consumers fail to read the fine print that might include the following:

1) Annual Fees: Many low APR credit card offers might provide a low interest rate or APR but require you to pay a substantial annual fee. If the effective interest rate (after counting the annual fee) is indeed higher than the actual rate, then this credit card is obviously masked in the garb of a low APR credit card.

2) Low Introductory Rates: Credit card companies know that low introductory rates are a great incentive. So when suddenly, the initial period ends, and your monthly minimum payment increases dramatically, you know something definitely smells fishy. Check it before you fall prey.

3) High Balance Transfer Fees: Another trick in the trade is that some amongst the low APR credit card fraternity offer low balance transfer rates that come with a high balance transfer fee (which would be mentioned in the fine print).

The moral of this story: Read and re-read the fine print associated with any low APR credit card before you apply.

Want Low Rate Credit Cards?

Follow these simple steps:

-Call the institutions in which you already have a bank account or credit card account. Discuss with them the possibility of converting your existing account to a low rate account.

-If your existing credit card company cannot provide this request, seek out an offer and a card issuer that does.

-Get in touch with the companies you are interested in applying for low rate credit cards. They might be able to provide information about existing card offers that you might not be aware of.

-Fill out the card application and return as per the instructions. Make a follow-up call to the credit card company if you have not heard from them within the next 10 to 15 business days.

-You have the right to obtain an explanation if the credit card company has turned down your application. The denial letter must explain how you can obtain your credit report.

Keep in mind, however, that credit card issuers reserve the lowest possible interest rate offers for customers with the strongest credit histories, so maintain a good credit history is essential when trying to secure all types of low APR credit cards.

For more information on a variety of low APR credit cards, Robert Alan recommends that you visit CreditCardAssist.com

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Teaser rates offered on low rate credit cards are a boon to customers. Low APR credit cards are an ideal choice for customers who carry a steady monthly balance. With so many options, finding the right low APR credit card suited to your lifestyle could be a challenge. Yet, it is worth the effort because, over the years, the cost of carrying a balance at a high interest rate could outweigh the other benefits associated with the card.

Shopping for a low APR credit card implies comparing credit offers not just on the interest rate offered but also on various other parameters. Most of these low rate credit cards require you to have a good or excellent credit rating to qualify for their lowest rate. However, a decent credit rating will fetch the card at a slightly higher rate.

The best way to start shopping for a new low APR credit card is to compare costs, terms, and conditions with the cards you already possess. Before switching to another low rate credit card, you should ask your current card company to lower the existing APR. If that is not possible, then choose a card that would fit best with your spending and repayment habits.

Factors to Consider while choosing the Low APR Credit Card:

1) Different rates for different services offered on the same card - low APR credit cards may have differential interest rates for the variety of services offered on the card. For example, the interest rate for cash advances could be 20% but the interest rate for purchases could be 9% and balance transfers could be at 0%! It is important to determine the primary use of the card
and then decide on the card that offers the lowest rate for the service that you need.

2) Variable versus Fixed Rate - The interest offered on low APR credit cards could be variable or fixed. Fixed rates tend to be low and are advisable for customers who carry a steady balance. A small change in the APR rate could make a big difference if you carry a balance on a card month on month.

3) Differential Rates for Different Balances on the Same Card - Certain low APR credit cards offer very low interest rate on certain balance amount and charge hefty interest if you cross that range. An interest rate of 9% could be applied on a balance of $500 but if your balance goes to $900, the rate might increase to 15%, for example

4) Low Interest for a Pre-Determined Time - The low interest offered could be an introductory offer or for a limited time period. This is risky, as you may have to pay heavy interest charges if you carry a substantial balance at the end of the said period.

5) Cash Back Options - Many low APR credit cards offer a certain percentage as cash back to you depending on the purchase type. The cash back percentage may be 1% or 5% and could be available on a wide variety of purchase items.

6) Balance Transfers - If you have multiple credit cards and need to consolidate, low rate credit cards offer a good option. Certain cards allow 0% APR on balance transfers with no transfer fees. Since this could greatly help in reducing debt and substantial savings in interest, it is worthwhile to evaluate the different interest rates offered.

7) Air Miles or Frequent Flyer Miles - Some low APR credit cards offer conversion of accumulated reward points to air miles to encourage customer spending. It is not a bad idea to benefit both from the low interest APR along with free air miles.

Grace Period (Interest Free Period) - Many low rate credit cards charge
interest from day one of your purchases. However, certain cards may give a grace period and not charge interest if you repay the balance in full each month by the due date.

9) Fees - Most low rate credit cards will offer reduced or even no annual fees. Choose the one that does not add to your debt burden by charging hefty annual fees.

If you consider applying for low rate credit cards, there are a variety of websites online that offer comparisons of various low APR credit cards available in the market, and can be tremendously helpful in your search for low rate credit cards.

For more information on low rate credit cards, Robert Alan recommends that you visit CreditCardAssist.com

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