How Low APR Credit Cards Work

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Millions of people are making use of their credit cards to purchase just about anything. Because of this, it is important to minimize total fees and interests. Paying high interest rates means a lot of money wasted. Fortunately, with the existence of several credit card companies hoping to get your business, most of them offer attractive interest rates to get ahead of the competition.

The primary indicator of how much you’ll be paying for credit card balances is the annual percentage rate or APR. The APR determines the total interest rates and fees you need to repay with respect to your loaned principal amount. It is a good thing that US laws in the Truth in Lending Act have required all lending institutions to post their APR. This would definitely help consumers in managing their credit card finances.

Currently, probably because of too much competition, credit card companies offer APR to even as low as 0%. Keep in mind though that nothing this good lasts too long. Usually, these are just introductory offers which last for about 90 days to a year. These are normally just marketing strategies tempting customers to apply for their credit cards.

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