The credit cards APR (annual percentage rate) of each credit card varies. Some APRs are as low as zero percent, while others can be as high as 30%. Whatever APR you avail from a creditor will depend greatly on three things: the credit card company’s offer, your credit score as a borrower, and the economic situation of the country.
Individuals with excellent credit scores can avail of a zero to one-digit interest credit cards APR, which is definitely the ideal amount. But for people with low credit scores, a 10% APR will be deemed acceptable. In this case, a “good APR” is relative to the person who is availing of the offer and his credit score.
To know the exact amount of a good credit card APR for your situation, consider the prime interest rate, which is based on the Federal Reserve Rate. This rate varies according to our economic situation. If the economy is good, the Federal rate is low and the credit cards APR should follow.
The ideal credit cards APR is less than 1%. The prime rate of the annual percentage rate of a credit card is usually 3-4 points above the Federal rate. In the past years, the Federal rates have been fluctuating above one percent. In this case, availing of a credit card with a fixed APR is definitely more advantageous.
There are many creditors nowadays who offer credit cards APR as low as zero to one percent. This is certainly an attractive offer. Take note though, that this is often just an introductory promo that lasts for six to twelve months. After the introductory period has expired, the APR is generally increased to a significantly higher rate. So before you avail of such an offer, be certain that you are aware of the rates you will be paying after the offer has expired. Do so in order for you to make sure that you can afford these rates when the time comes.
You have many choices of credit card companies who offer really low credit cards APR. With this in mind do some research so you can avail of the best offers. The best place to search is the internet, where a lot of websites rate and review various credit card companies. These sites show the different offers, rates and terms of each creditor, so comparing them should be a piece of cake. This information will help you greatly in making an intelligent and informed decision.
Zero to one percent credit cards APR are usually just introductory offers. According to statistics, the average APRs across the board are 11-13%. If your credit score is not very impressive and you have an 11% APR on your credit card, then it is not that bad of a deal at all.