Factors To Consider:
Choosing the best low interest
-or- 0% APR credit card can be a difficult task. With
such a
wide range of options, how do you determine which offer
is best for your personal needs and objectives? The first
thing you should ask yourself, is which is more important:
getting the lowest APR, or having the longest 0% intro
period?
If you're transfering an existing
credit card balance, a longer 0% APR is almost always
the best option. Since you won't be paying interest on
your transfer amounts, you could save more money with
a longer intro. It's also great if you plan on making
purchases right away and paying them off before the introductory
period is over.
If you're looking for a credit
card for long-term charges and don't plan on transfering
any existing balances, then a low ongoing APR might be
better for you. Keep in mind that the best type of offers
provide both a 0% APR, and a low interest rate after the
introductory period is over. Still confused, see our article,
"Low Interest Vs. 0%
APR".
When comparing low interest -or-
0% APR credit cards, here are the most important
factors to consider before you apply:
- Intro Length: Look for
the card with the longest introductory period. The typical
length is anywhere from 3 to 15 months. If a 0% offer
is available, consider it first since you'll save the
most money during the intro period.
- Ongoing APR: What is
the APR after the introductory period is over? Are there
different APRs for cash advances and new purchases?
Find the card with the lowest ongoing rates for the
features you will use the most.
- Fees: What fees are associated
with the card? Is there an annual fee? Is there a late
payment fee? Find the credit card with the lowest and
least amount of fees.
- Grace Period: This is
the length of time from the date of a purchase until
interest is actually charged. The average length is
about 23 days. If you're transferring a balance, then
the grace period doesn't apply because it's only provided
to new purchases when there isn't an outstanding balance.
- Rewards: Does the card
have any special rewards or rebates programs associated
with it? Depending on your spending habits and interests,
these rewards can really add up.
Getting the Lowest Rate:
Choosing the right credit card
can make a big difference in how much interest you pay.
But make sure your credit report is accurate and in good
standing before you apply as well. Since most banks use
your credit report to determine which APR you qualify
for; the better your credit-- the better rate you'll recieve.
Even though our site (or other sites) might display a
specific rate for a credit card, you may not qualify for
the APR shown if your credit is in bad shape. Save
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