Credit Card Interest Rate

Credit Card Rate

Since the credit card interest rate is one of the most important factors when choosing a credit card, having a good understanding of the different apr rates, becomes even more paramount.

A striking feature of any credit card advertisement is always the credit card rate or the credit card APR. For many people, it is just a case of comparing the credit card apr before choosing a low interest rate credit card. This approach however, is not always the most cost-effective way to go about selecting the best credit card rate or product.

The credit rate or apr, represent the rate of interest the credit card supplier will charge you, on any balance outstanding on your credit card credit account. Interest payments are charged when you do not make full payment of your balance when it becomes due during the billing cycle.

For instance, if you choose to make the minimum payment or a partial payment of your balance, you will be charged interest based on both the credit card interest rate and the amount of your outstanding balance.

The credit card interest rate or apr that is charged will have been pre-agreed at the time you made your credit card application. This rate of interest is referred to as either the credit card intrest rate or credit card APR - (Annual Percentage Rate).

Credit card providers use this apr to calculate the monthly credit card intrest rate and the interest on your credit card account balance, in the event you should make only a minimum or partial payment. This interest is then added to your balance.

If you continue to make only the minimum payment or a partial payment each month, your balance is again calculated and the monthly credit card interest rate is applied in order to work out the new interest to be charged. This never ending spiral of credit card interest rate continues to be applied to your credit card account until such time as you clear the full balance.

You can see how easy it is to accumulate credit card credit debt from the recurring credit card intrest rate charges that are applied to your credit card account from one billing cycle to another. For this reason, credit card interest rate becomes the most important factor when choosing a credit card. Being aware of credit card interest rates and how they can rise will help you see the danger in accumulating credit card debt.

Don't be shy about doing a comparison of credit cards and reviewing the current rate of interest you're being charged. To get the best credit card interest rate, do your homework by shopping around.

If you find your current card is charging you too much, contact your credit card issuer and politely request a lower interest rate or point out the alternative of your switching to another low interest rate credit card provider. This is all it will usually take to get a lower rate. However, should you not be successful with your present credit card supplier, simply do a credit card balance transfer to another card. Be sure to check and compare different credit card transfer rate offers first though.

0 Credit Card/Interest-Free Cards

You may well have had a number of pre-approved credit card offers, each of which might seem a tempting proposition in its own right.

These temptations that urge you to apply within a specific timeframe, are often in the form of either a low credit card introductory rate, 0% credit card offers or even a 0 interest credit card for purchases and/or balance transfers. You and urging you to apply within a specific timeframe.

Before you accept credit card offers presented to you in this way, take some time to research these products - as well as shopping around. You will also need to clearly identify your credit card credit objectives before you're in any position to make a decision.

If for instance it is not your intention to clear your credit card balance each month, then you're better off sourcing a cheap credit card. The best credit card in this instance would be a product that offer you both 0% interest on balance transfers and purchases.

You should aim for a card that give you the longest possible grace period (from the time of your purchase to the date you need to pay). This can range anywhere from 50 - 59 days. Note however that some of the cheapest credit card offers do not give this lengthy interest-free period.

Irrespective of which credit card you choose, be warned that there is no interest-free period if you use your card to withdraw cash either by writing yourself a credit card cheque; or take money from an ATM; or if you purchase foreign currency. You will incur hefty credit card interest rate charges.

Finding Information On 0 Interest Credit Cards/Credit Card Interest Rates

You'll find there are numerous cards, offering a variety of incentives and credit card interest rates. These will vary from 0 interest credit cards, 0 balance transfer credit cards to low interest credit card with typically 3, 6 or even 12 months interest free periods.

You will find these offers and the credit card interest rate on the Internet, in newspapers and financial magazines. It is adviseable that you go directly to the credit card company to be sure you get the very latest information on their credit card card credit products as well as the credit card interest rate.

The content on this site is purely for information purposes only and is not intended to replace your seeking professional financial advice.

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