Tuesday, January 23, 2007

Low APR Credit Card: Know How It Works!

By Mario A. Churchill

The people of today are hooked into the use of their credit cards in every purchase transaction that they engage into. So it is not to be doubted that there are several of the credit cardholders who happen to suffer from unpaid credit debts.

The main reason for this is that these users tend to let their impulse rule over them. Meaning, they tend to purchase things which are in truth not of great use to them. The result is that they have to pay for a lot of interest charges and add the fact that they earn debts for themselves!

With the lavish use of the credit cards, more and more money get wasted. But with the onset of the fierce competition among the numerous credit card companies, these businesses provide attractive offers to lure great numbers of clients. All these credit card issuers think of getting ahead of their competitors. Part of the handsome offer of these credit card issuers is the low APR. What is a low APR all about and how can you benefit from it?

The APR or the annual percentage rate is the determining factor for the computation of the total interest rates and other fees which you as the cardholder need to repay aside from the principal amount you have taken as a loan. Legally, the laws in the United States emphasize vividly that all lending institutions should clearly post their APRs as empowered by the Truth in Lending Act provision. In this manner, all of the credit card holders will be familiar with the effective ways on how they can manage their loans and finances.

The low APR credit cards are those which offer lesser or up to 0% interest rates. The introductory phase is all about getting low interest charges. But as the credit card applicant, you must be attentive to the time duration when such low APR can become applicable. You may end up plainly relying on the concept of low APR credit card but only to find out skyrocketing fees to be settled after some time.

Generally, the low APR credit cards function for just about six to nine months span of time. Other than that, you will need to settle your interest rate charges because business is still business. And credit card business is all about profiting from the interest charged on the cardholder.

Do not believe most of the promotional strategies done by credit card firms such as the exposition of the low APR credit cards. These things do not last for long.

They are basically all about tempting the customers to join their business. Low APR credit cards may vary in terms and conditions. Different transactions will then have diverse low APR grants. For example, the APR for balance transfers are lower than that of the cash advance APRs. Furthermore, another different APR can be applicable to the late payment of dues.

You must know how the things called as low APR credit cards work. They can be used as catchy advertisements yet they may not entirely serve the purpose. You can direct the advantage of the low APR credit cards for your own enjoyment if you know the ropes and if you know the way of how you can maneuver things.

It matters that you are fully attentive to the workings of the low APR credit cards and not risk getting yourself into some serious trouble.

Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information on a credit card or to apply for a credit card checkout his recommended websites.

2 comments:

Benjaminjames said...

I've had my Chase Platinum Visa Card now for over 5 years and love the benefits of it

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