Posted on Wednesday, 4th November 2009 by admin
The credit cards APR (annual percentage rate) of each credit card varies. There are APRs as low as zero percent and their can be APRs as high as 30%. Whatever APR you avail from a creditor will depend greatly on three things: the credit card company’s offer, your credit score as a borrower, and the economic situation of the country.
For an individual with an excellent credit score, zero to a one-digit interest credit cards APR is certainly what one would call ideal. But for people with low credit scores, a 10% APR will be deemed acceptable. In this case, a “good APR” is relative to the person who is availing of the offer and his credit score.
To know the exact amount of a good credit card APR for your situation, consider the prime interest rate, which is based on the Federal Reserve Rate. This rate varies according to our economic situation. If the economy is doing well, then the Federal rates and credit cards APR should be low.
The ideal credit cards APR is less than 1%. The prime rate of the annual percentage rate of a credit card is usually 3-4 points above the Federal rate. In the past years, the Federal rates have been fluctuating above one percent. In this case, getting a credit card with a fixed APR would certainly be more beneficial.
There are many creditors nowadays who offer credit cards APR as low as zero to one percent. This is certainly an attractive offer. Take note though, that this is often just an introductory promo that lasts for six to twelve months. Once the introductory period is over, the APR generally increases to a considerably higher rate. So before you sign up for an offer, make sure that you know the rates that you will be paying after the promo has expired. Do so in order for you to make sure that you can afford these rates when the time comes.
There are plenty of credit card companies out there that offer really low credit cards APR. With this in mind, you can do some research so that you can score the best deals. The best place to search is the internet, where a lot of websites rate and review various credit card companies. These sites show the different offers, rates and terms of each creditor, so comparing them should be a piece of cake. Obviously this information will be of great help in making an informed and intelligent decision.
Zero to one percent credit cards APR are usually just introductory offers. Statistics show that on the average, the APRs across the board are 11-13%. If you have a not so impressive credit score and you are carrying an APR of 11% on your credit card, then know that that is not a bad deal at all.
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