Those using credit cards must have an idea about APR. Annual Percentage Rate or APR is the rate of interest charged over the money you borrow. The interest is for a twelve month period and thus called an annual rate. Normally this rate lies between 15% and 40% and proves very heavy for the borrower. So, there is a facility for low APR credit cards which offer borrowing through the card with much lower interest.
Low APR credit cards are different than standard credit cards. If standard card charges 20% as the annual rate, the low APR cards may fall down to 10% or even lower. Some of the providers of these cards also give benefits like reward points, initial interest free periods, balance transfer and purchases, commission free purchases and more. However, very few providers offer these cards in the UK. To find which providers do so, just check by clicking on the following link credit cards.
Major benefits of low APR credit cards:
Low interest and easy payment: Well, it is pretty simple. With these cards you need to pay much lower interest on your balance and so, they prove more economical than a standard credit card. Thus, you end up paying much less compared to a standard card.
Introductory offers: Some of these cards also offer 0% introductory rate offer. So, you will be able to enjoy the interest free period for the specific time. After that you will have to pay the smaller APR on the balance until you pay fully. This way, you save much more than you do with standard credit cards.
Economical than 0% interest cards: In some cases, the low APR cards prove more economical than the 0% interest cards. This happens when you cannot make repayment during the interest free period. In case of the 0% interest cards, you will have to pay higher interest once you miss the repayment during the interest free period. Unlike the 0% APR credit cards, the low APR cards have a much lower interest rate throughout the period and so, the overall repayment would be much lesser in case of low APR cards.
Long term benefits: The best part about these cards is that you can continue with them for a long time and still enjoy the same benefits of low interest rates. You no longer need to switch to cards offering 0% introductory periods. As you do not keep switching the cards, it creates a positive impression on your credit report. Also, you save on balance transfer fees which is mandatory for getting an interest free card.
To summarise, there are many benefits to choosing low APR cards. These are best fit for people who are good with monthly repayments but may miss out payments occasionally. Again, credit card providers offer these cards to those with an excellent credit rating. Overall, these cards can make bigger savings over a long period of time. To know the best low APR credit cards and providers that offer these cards check our website freepricecompare.com. You can also call us on 02034757476.