You probably see a lot of credit card offers on a daily basis whether it’s on television, the internet, a magazine or in the mail. In the advertisement, you probably see or hear APR mentioned several times in the form of Introductory APR, Standard APR, Cash Advance APR, Balance Transfer APR and Default APR. The differences between these APRs might be confusing at first but they are pretty simple to understand.

Introductory APR refers to the initial interest rate you receive for purchases on the credit card when you first get it. This Introductory APR is usually really low (around 0%) and lasts between 6 and 12 months.

Standard APR is the interest rate the credit card goes up to after the Introductory APR period is over.

Cash Advance APR is the interest rate you receive for cash advances.

Balance Transfer APR is the interest rate you receive for any credit card balance you transfer over to your new credit card. As a side note, if you have a high interest rate credit card and the new credit card company’s Balance Transfer APR is lower than your present credit card’s interest rate or if they offer the Introductory APR for balance transfers, transfer your balance to the new credit card if you can pay the balance off within the Introductory APR period.

Default APR is the interest rate your card goes up to if you are late on payments or go over your credit limit.

A secured card is a credit card that a cardholder “secures” with a deposit to ensure payment of the outstanding balance if the cardholder defaults on payment. Secured credit cards are targeted to customers with imperfect or limited credit histories who do not qualify for a traditional unsecured credit card. An unsecured credit card is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt and, therefore, have higher interest rates than other forms of lending such as mortgages that hold property as collateral.

Is Obtaining An Unsecured Credit Card Easy?

Criteria used to determine eligibility varies from card issuer to card issuer. Most banks and financial institutions will grant you credit if you meet the following requirements:

You must be a resident of the United States.

You must be at least 18 years of age.

You must make at least $95 a week.

You must have a valid Social Security number.

You must be employed for at least 6 months.

Are All Credit Cards The Same?

Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. Do you expect to pay your bills in full each month or do you plan to pay off your purchases over time? Consider the annual fee, finance charges, interest computation method, whether or not there is a grace period for purchases and cash advances or balance transfers. It is also a good idea to look at the credit limit, how widely the card is accepted, additional services and features, and the Annual Percentage Rate (APR) and finance charges.

NOTE: Most credit card plans allow the issuer to “reprice” your current APR if the account falls into poor standing or becomes delinquent. Repricing is the act of increasing the APR.

What Is An Annual Fee?

Some issuers charge an annual membership fee or participation fees. These range from $25 to as much as $100.

“Gold” or “Platinum” cards sometimes reach as much as several hundred dollars. These fees may be charged whether or not you use the card.

Are There Transaction Fees And Other Charges?

A card may include other costs. Some issuers charge fees if you use the card to get a Cash Advances, make a late payment, or you exceed your Credit Limit. Often an issuer will charge a fee to transfer a balance from another creditor’s account to their account. Fees are disclosed to you in your Terms and Conditions as well as in your Account Agreement. It is important that you read these documents in order to understand your responsibilities as an account holder.

What Is Credit Card Fraud?

One way to keep fraud under control is to closely monitor your credit report. A great way to do this is with a credit monitoring service. The cost of this service can range from $20-$50 per year. They give you unlimited free copies of your credit report so you can check it whenever you need to, online Monthly Monitoring Alerts to inform you of changes, black marks, inquiries and possible credit fraud signs on your report, information to help you deal with inaccuracies in your credit report, a newsletter with tips for managing your good credit, and articles to help you stay on top of your credit.

Is It Safe To Use Credit Cards Online?

It is much safer to use your credit cards on the Internet with a secure server than calling someone and giving your credit card numbers over the phone. However, people are still somewhat leery about using their credit cards on the Internet. When you use a secure server over the Internet, the data gets scrambled or encrypted and then put back together again once it reaches its intended destination. If you give your credit card numbers over the phone it is not in cryptic form. Furthermore, most credit card companies guarantee safe shopping on the Internet so you really have nothing to lose.

Low Interest Credit Cards – Shopping For the Best Available

Low interest credit cards are essential tools for the frequent credit card user. Because many people cannot pay off their credit cards entirely when the bill arrives each month, enrolling in a low interest rate credit card program can help you keep your interest rate fees to a minimum. There are a variety of highly feasibly strategies available for shoppers that are in the market for low interest credit cards.

Background

Before you begin shopping for the best available low interest credit card, it is important to understand how rates are set. You probably know that all people wishing to obtain any sort of credit in the U.S. must go through a “credit check.” A credit check is essentially a survey of your past credit transactions that will help to determine the degree of liability that a credit card company may have to assume if you are going to be a client. Because there are so many credit card users representing a variety of backgrounds, individuals are assigned a unique “credit score.” In general, the higher your score is, the better chance you have of obtaining a low interest credit card.

Balance Transfer

While no credit card company can readily offer an interest-free card (at least for the long-term), you may be able to frequently transfer your credit card balance to a company that offers so-called “cheap credit cards.” Cheap credit cards are, essentially, credit cards that offer a limited-time-only promotion whereby individuals that enroll to receive a special low interest credit card will benefit from a 0% interest for a pre-determined amount of time. Buyers: beware. Often, when a company offers a 0% introductory rate, they make up for the generosity by drastically increasing the rate once the trial period has expired. For this reason, many individuals that use these cheap credit cards frequently migrate their balances from one low interest credit card provider to the next.

Be a Long-term Client

While migrating your balance from one company offering cheap credit cards to the next may seem like a strategic move, the frequent moving actually has a negative long-term effect on your credit score. Each time you open and close a credit card account, your credit score is threatened. The more you open and close the less stable you will appear. Therefore, your credit score will necessarily be lowered. However, there is hope for long-term clients wishing to obtain a low interest credit card. No matter how low or high your interest rate is when you initially enroll in a program, if you can establish a strong history with a credit card company, you will be in a good position to negotiate a low interest rate.

Shop Around

It may seem intuitive, but many credit card users neglect to shop around for the best rates. Instead, they sign up with whichever low interest credit card company that offers an appealing rate on the direct mail campaign. However, with a little research, you will likely find that there is a huge disparity between the rates that various credit card companies are prepared to offer. Also, if you are a member of any professional organization, you may qualify for an additional discount on the interest rate. Do your research; you will find that education will be your finest asset when selecting a low interest rate credit card.

Everyone wants to shop using a low interest credit card. No matter how affluent you are, many people bulk at the idea of paying high interest rates month after month. Regardless of your existing credit score, if you combine strategy and research, you can certainly find a slew of low interest credit cards that will make your purchasing experience much more pleasurable. Remember: cheap credit cards not only soothe any shopper’s conscious, but they allow shoppers to retain some extra cash that they can put towards more important purchases.