Lowest Fixed Apr Credit Card

Find Out What This Card Can Do For You When Used Wisely

What is an APR?

APR stands for Annual Percentage Rate. This is the rate that the consumer pays per year and is normally based on a prime rate. The prime rate is the percentage that the government loans money to other banks. They loan this money through the Federal Reserve Bank. The APR can be any rate up to the maximum allowed by law. The government regulates lending so that certain companies can not take advantage of unknowing consumers. The lowest fixed APR credit card is a card that currently offers the lowest APR rate among all other cards offered. This rate is fixed and will not vary from year to year.

What can this card do for you if used wisely?

When used wisely this credit card can help you improve your credit rating and save money. Paying off this credit card every month on time can increase your credit rating and allow you to obtain future credit. The card also gives an option of saving money on interest. A few percentage points of interest can cost consumers thousands from year to year. If a consumer carries a balance on their credit card they can be paying interest on this for years to come. For example, let's compare a card with a 12% APR and one with a 24% APR. The 24% APR card would cost a consumer twice as much in interest every year.

Another example that may not be as obvious is a 12% APR card and a 15% APR card. If you look at a purchase of $100 then the 15% APR card can cost an extra $.25 per month as compared to the 12% APR card. This doesn't seem like a lot in the beginning but if you multiply this over the course of a year you would pay an additional $30 for the year in interest. Is this significant enough? Maybe not but when you consider that most consumers spend considerably more then $100 on one credit card the numbers can be amazing.