Factors to Consider to Secure a Low APR

Not necessarily a bad thing, the buy now, pay later philosophy has been embraced by the credit card world.  No need to carry cash, just swipe your card and you’re done.  Until that is, the end of the month when the bill comes.

Every card has its limit.  When your balance is higher than your limit you may have to pay a fee, your annual percentage rate (APR) may go up or the card can even be taken away from you.  Zero percent cards are getting more difficult to come by.  Major card issuers are increasing their APR and are looking for consumers with not only good credit, but superb credit.

Credit scores and credit card use are inexorably linked together.  Credit scores range from 300 to 850.  These numbers are used by banks and lenders to asses the likelihood of you making good on a loan.  A higher score signals to lenders that you’re more likely to repay the debt than someone with a comparatively lower score.  Several factors determine your credit score.  There are several factors to consider if you’re looking to secure a low APR on a credit card.  One primary factor is whether or not you pay your bills on time and the length and history of your credit accounts. You can easily boost your credit scores by paying your bills on time over a long period.

0 % Credit Cards

Although credit cards with 0% APR seem attractive the 0% is usually offered for a limited time.  Frequently for the first six months a 0% rate is quoted then after that the rate shoots up.  Here is a summary some of the popular 0% cards that are available.

Capital One No Hassle Miles Rewards offers a 0% on purchases until Nov 2010.  After this there is a 13.90% annual rate and no annual fee.  Air miles are awarded 1 mile per dollar spent on purchases up to $1,000 and 2 miles per dollar above the thousand.  With no limit and no restrictions on the miles you can earn this is a card worth investigating.  Along with the Capital One No Hassle Miles Rewards there is the Ultra for Professionals.  It is a 0% card that charges a $39 annual fee and offers 2 miles for each dollar spent.

You can get 0% interest for 6 months with the Discover More American Flag card. This also includes balance transfers.  The regular APR between 11.99 to 18.99% and no annual fee and you can earn up to 20% Cashback Bonus rewards for online purchases.  The Discover Card also has a Biodegradable More Card which breaks down 99% within 5 years while in the landfill.

Discover also offers the Miles by Discover.  You can get 1000 miles each month for the first year.  You are eligible for 12,000 miles. When you use the card for travel purchases you get double miles on up to $3,000 per year and 1 mile for every $1 in other purchases.

Another card with 0% interest for 12 months is Slate from Chase.  Regular APR is 13.24% and no annual fee makes this card attractive.  Customers also like the fraud protection and zero liability for unauthorized purchases.

The Citi Platinum Select Card offers interest free on purchases and balance transfers for 12 months.  Regular APR is 11.99% no annual fee and zero liability for unauthorized purchases.  Discount on gift cards, travel, merchandise and free online account management make this card a favorite among consumers.

Citi also offers a Forward Card that offers lower interest rates for good spending habits.  When you stay under your credit limit, pay on time for 3 consecutive billing periods the Forward Card will offer a 2.5% reduction on the purchase APR.  Bonus points are assigned to your account and can be accumulated on purchases of books, movies and dining.

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