Low APR Credit Cards 

Credit card is a plastic card that is issued by the bank allowing a consumer to purchase products and services from any merchant on credit. The consumer is provided with a credit limit that can be used for this purpose; the approved credit amount is either settled fully at the end of a specified time period or settled in parts and the balance amount is considered as extended credit. The bank charges an interest from the holder along with an annual fee (however, at present many banks are waiving off this amount to stay in the competition) according to the terms in the card agreement. Today owning a credit card has become as important as having a bank account. With the high standards of living, credit cards are extremely helpful in managing the monthly expenses and debts. However, we all look forward to close off all our debts and not just manage them. This is when low APR credit cards come into play. 

What is an APR ?
Annual percentage rate or APR is the amount or the rate of interest that one has to pay if the balance is carried forward to the next month; a cash advance is taken or a balance is transferred from another card. The APR states the interest rate as a yearly rate. In a nutshell, APR is the yearly cost of the credit that is paid to the user expressed as a simple percentage. It combines the actual interest that is incurred on the borrowed amount and other additional charges that the company takes (excluding the penalty charges). However, if the APR is not paid on time, it starts getting accrued to the total debt and in turn keeps attracting more interest. This whole process is known as compounding and becomes a major concern for those who are planning on getting a new card.

The APR rates usually differs from one company to another and ranges anywhere between 10% to 20%. So, it is recommended that you do an extensive market research before deciding on a particular credit card. Look for a card that best suits your requirement.

The credit card usage is becoming increasingly popular and to avoid competition most of the credit card companies are providing very lucrative deals. There are some companies that offer very low introductory rates – which are as low as 0 to 2%. The interest free period is given for 6 months to 1 year. So, the lower is the APR, the lesser is the cost of the credit card; and obviously more affordable. Moreover, if you decide to pay back the whole amount on time, you hardly incur any interest. So, if you off the whole balance at the end of every month, the credit card companies reward you with an interest free credit for on average about one month. 

There are a few credit card companies that offer low APR to some privileged customers who also have a good credit rating. A bad credit rating invites a very high rate of interest and hence a very high APR. Besides, low APR rates are offered to Gold and Platinum card holders along with some other schemes by the majority of the banks. However, these schemes are only available to a niche set of customers. Credit cards with low APRs are designed in such a way that they have a lower interest rate and APR on the money that you owe to them. They are particularly useful for those who want to save the money on their spending and are unable to repay the full balance in the specified month. Possessing a credit card with a low APR helps them to pay back the debt after the due date with no added burden of interest.