im searching for a credit card and im little bit confuse about the APR so im asking the lower the APR the better right? ( to me i think APR as a enterest rate)
2007-12-29 15:07:40 · 4 answers · asked by freelance812 2 in Business & Finance ➔ Credit
The APR and actual rate are two different things, but yes, the lower the APR, the better you will be. The lower the APR, the less the bank will take in interest fees per month if you kept a balance. If you never planned on holding a balance on the card and paying it off every month, than the APR really means nothing.
2007-12-29 15:13:33 · answer #1 · answered by servo46250 2 · 0⤊ 0⤋
You're right - the lower the APR the better.
APR stands for Annual Percentage Rate. Any credit card balance that you don't pay off each month will be charged interest (finance charges) based on your APR.
Use your card and credit with care. It's very easy to swipe plastic and buy things that you don't have the money for. The longer you have a balance on your credit card, the more interest you'll pay. It's tough enough paying bills. Paying interest charges on top of normal bills just plain stinks. Read through this section and see all the people who've dug themselves a very deep hole of debt.
2007-12-30 04:19:45 · answer #2 · answered by Ceebee 3 · 0⤊ 0⤋
Paying a lower APR is better for you because you will pay less money in interest to the creditor.
Before using credit think if you really have to buy something so bad that you will pay an extra 20%+
2007-12-29 16:36:34 · answer #3 · answered by northnode3g 3 · 0⤊ 0⤋
Yes but charging things and paying interest is a very expensive way to finance things.
2007-12-29 15:21:42 · answer #4 · answered by shipwreck 7 · 0⤊ 0⤋