Low apr credit card

Some credit card companies use the term low APR to promote their credit card offers. But how do you know if the card you are applying for is really a low APR credit card? To determine whether this is accurate or not, you're going to have to look at the fine print of these claims.

Here is some basic interest rate information to help you determine if those "low APR rate credit cards" are really "high interest rate credit rip-offs."

Keep in mind that interest rates are variable. Credit card rates are set by adding a spread, or margin, to a base rate. Your base rate is often a widely used index rate, which is almost always a rate that changes periodically, without warning and for no reason.

The advertised rate on a credit card is often the card's simple interest rate. The effective interest rate, however, is your true cost of borrowing and includes annual fees you pay to use the card. The compounded interest rate is a better barometer of your effective interest rate. For example, if your card has a rate of 12%, your monthly rate would be 1%. Because credit card interest is compounded monthly, the effective annual interest rate on a 12% simple-rate card is 12.68%. By doing a little research, you could save yourself a lot of money in interest in the long run.

Check if you have a low apr credit card at Nationwide Card Services, Inc