Cheapest Credit Card Rate

Why is the Cheapest Credit Card Rate Always the Best Choice?

Calculations

The APR that a credit card will charge is based on the prime - which is the nationally set rate, plus an additional few percentage points. While some credit cards will offer a zero percent APR, this is never a permanent situation, but rather a temporary one, designed to attract new customers. Zero percent APRs typically last for about one year or so. Because the set prime rate will fluctuate based on different economic conditions, it is very possible that the APR you get from a certain credit card will also fluctuate. This is a common occurrence with credit cards and can drastically increase your credit card payments each month as well as render them less effective against paying down your balance.

Fix It

One way to circumvent paying on a fluctuating APR is to get a credit card that has a fixed rate. This means that no matter what the prime is currently set at, your APR will remain the same. While fixed APRs may not have the cheapest percentage rates, it may be more financially cost-effective in the long run to have the security of knowing your rate will be the same.

Go Shopping

Finding a credit card with the cheapest credit card rate is one of the most important parts of having a credit card. If you have a card with a very high rate, the balance on the card will not only take much longer to pay down, but in the long run, you'll end up paying significantly more than you initially had on the balance. Before choosing one card over another, do a little research. Shop around and see which companies offer the best rates. Talk to friends and find out what they like and don't like about their card. Then, after you have compared notes, you will be in a better position to make a more informed decision.