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CREDIT CARD RATE

When getting a credit card, the first thing that most people worry about is the credit card rate. For the first time credit card owner, this might not mean much, but for people that have gone through the hassles of owning and paying for a card, the rate of any given credit card can make all the difference.

Depending on the company or bank that you decide to get a credit card from, your rates will vary. For example, if you have a very good credit, expect to get a card that will have an APR of about 10-17%. If you are using a card for cash advances (such as that for auto or tuition), over time, certain APRs that may seem small at the beginning begins to soar.

Some people enjoy low APRs and lower finance fees when they get a credit card from their own bank. Having a good relationship with your bank can make credit card rates incredibly low; plus studies show that credit cards obtained from a personal bank is more maintained than a card obtained otherwise.

If you are looking for a credit card, you should put the credit card interest and APR into consideration: these are two different factors.

It is recommended that you use the credit card's APR rather than its interest rate in determining what card to choose. If two companies are offering an APR of 15.90%, it doesn't necessarily mean that you will be paying the same amount back. While the credit card APR is the total cost of yearly accumulated credit, the credit card interest rate is the amount that will be charged by the credit card company.

When applying for a credit card, also take other fees into consideration such as the annual fees, balance transfer fees and late payment fees… these can accumulate over a long run.

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