How Important is Credit Card Apr

by : Barbara Camie

The lower APR, assumes to be more attractive to the potential clients. But is APR really the most important characteristic of a credit card?

In the first place, an important minority of people purely uses their cards like advisable method to pay for merchandise or services, and clear their balances completely every month. It is more important that you have a period free of interests enough time to cover the time between the costs and to place your account, so you will avoid paying any interest at all whatever the rate is higher or lower. A free period of the interest must always be more than 50 days, with 55-60 days being common at the moment. If you are one of these users who make a substantial number of purchases with their card every month, you must go for a card that will offer you various rewards for using it. One of the most common reward programs will lets you accumulate points with each purchase, that can be redeemed as discounts against the purchases done in certain warehouses, or to receive gifts, the wine, or to have free dinner. Another way of reward is cashback. The cards with this feature will offer a discount of 1% during every transaction that you make through your credit card.

Another group of the credit card users are using 0% introductory balance transfer to avoid the interests. For this kind of users APR is not a very important factor. But if you are transferring a balance on a card, is recommendable not to use that the card for any purchases at all to maximize the advantage of this offer.

But is it so that APR is not very important for credit card users? Not really. Most of people in fact hold a certain debt in their cards from one month to another and lower rate of interest means their debt will cost to them obvious less. Nevertheless, before plumping for the card with the lowest tariff it is a good idea to think of how you glide to use your new card, you should see if the characteristics such as cash back, rewards or distributions in purchases or transferences of the balance will outweigh the interests of a very low standard rate.