Things to Consider before Applying for a Low Apr Credit Card
A Credit Article Contributed by Priya Katyal
Things to Consider before Applying for a Low Apr Credit Card
Advantages of having a low APR credit card are many. Currently you may be getting offers for a low APR credit card from your existing creditors, but one must bear certain things in mind before considering to apply for a low APR credit card.
Low Apr Credit Card: How Low is the Apr?
The first and foremost thing to consider is the annual percentage rate (APR) offered by a credit card and how low it is. It is the most important factor and it could save you lots of money in interest. The lower it is the better it is for you. You should be able to transfer your high interest balance to your low APR credit card in order to save more money.
Length of the Period of Low Interest Rate Offered by a Low Apr Credit Card
The other important thing to consider is the period of new low interest rate applied. This low interest period offered by your new low APR credit card is usually from three months to up to a year and is very important if one wants to save money. Longer the period, the better it is for you. You should also take into account any annual fee charged when calculating the actual interest rate on your balance transfer.
How Much Money Can You Transfer to Your Low Apr Credit Card?
One should also consider the amount of balance transfer you are allowed to make to your new low APR credit card. If they offer balance transfer up to the credit limit of the low APR credit card then it is a good deal. But often that is not clearly mentioned and you may end up over shooting the credit limit when balance transfer fees and interests are included, subjecting you to more penalties.
Balance Transfer Fees Applied by Your Low Apr Credit Card
Although most of the credit card issuing companies offering low APR credit cards don't charge any fees for a balance transfer but it will be advisable for you to read the terms and conditions very carefully, before applying. It is better to clear any doubts regarding balance transfer fees before hand because if charged, they can be very high.
Late Payment Fees Imposed by Your Low Apr Credit Card
The late payment fees should also be considered before applying for a low APR credit card. As usually the late payment fees charged by many low APR credit cards is very high if you fail to deposit the minimum monthly payment due. And this could not only even out any advantage you had by getting a low APR credit card but may also cost you more money.
What Rate Will Be Charged When the Introductory Period Ends on Your Low Apr Credit Card?
There are many low APR credit cards which will charge a much higher rate than usual after the introductory offer ends. You should always inquire about it before applying for a low APR credit card to avoid paying more when the introductory period ends.
