When you are scouting for a credit card. Credit card APR should be a deciding factor. The question is what is a good APR for a credit card?
An APR is an acronym for Annual Percentage Rate. Simply explained, Credit card APR is a yearly interest rate paid on your credit card. The interest is owed from purchases within the year.
Tips to Get a Good Credit Card APR
The major determinant of Credit card APR is credit scores. In essence, a good credit score means the issuer trusts more because of your credit status.
There are three steps to get a good your credit score:
- Pay your bills on time, every time: Set your bills payments to autopay.
- Pay off outstanding balances: Use less credit made available to earn a reduced credit score.
- Ask for a credit limit increase: Raise your credit limit can also improve credit utilization ratio. You can call your issuer and ask.
Lastly, if you want to lower your credit card APR call your credit card issuer. Then get your bills paid on time. Then you might be up for consideration.
Factors to consider before choosing a Credit card
Here are some factors that you might want to consider before choosing a credit card.
Credit Union Credit Cards
Since credit unions offer lower credit card APRs. For example, the NFCU Platinum Credit Card offers purchase APRs between 7.74%–18.00% Variable.
0% Credit Cards APR
The credit card offers a 0% introductory credit card APR for up to 12–18 months.
Two reasons why people get this card:
- To make a large purchase: If you have a large purchase ahead, you can get a 0% APR card. This will allow you to loan yourself some money that you can start paying in a new year.
- To transfer a balance: People generally transfer a balance to a card with a lower interest rate.
A 0% APR card will save some cash for you in the long-term.
Top cards with low Credit Card APR
If you are looking a credit card for long-term purposes the get a card with low credit card APR. Typically credit card APR of between 13%–24%.
Below are some cards you can get.
Barclaycard Ring™ Mastercard® Goto https://cards.barclaycardus.com/banking/cards/barclaycard-ring-mastercard/
Introductory balance transfer APR: 0% APR for one year, for transfers within the first 45 days
Regular purchase APR: 13.74% Variable
Regular balance transfer APR: 13.74% Variable
UNFCU® Elite Visa® Card. Kindly visit their official website at https://www.unfcu.org/credit-cards/elite/
Introductory purchase APR: 0% for 6 months
Regular purchase APR: 11.65% Variable
Regular balance transfer APR: 11.65% Variable
DCU Visa® Platinum Secured Credit Card, Visit https://www.dcu.org/loans/visa-secured.html
Regular purchase APR: 13.25% Variable
Regular balance transfer APR: 13.25% Variable.
Why Credit Card APR Matter Less Than You Think
While it is valuable to understand how credit card APR works, it is much better to choose a credit card based on earnings.
Because credit card bills are paid in full each month, there will be no interest charges on purchases and less credit card APR worries. Holders of top cards worry less about high credit card APR because they meet up with paying monthly charges.