Financial Planning

What’s 0% APR Credit Cards?

It’s the catchphrase that everyone in the market for a credit card is after. With so much competition between financial and credit institutions trying to get more clientele, certain companies have lowered their APR rates to attract more clientele. Certain losses incurred there, will no doubt be made up for in service fees and charges at a later point.

What is APR?

It’s an anagram for Annual Percentage Rate. It’s essentially the standard interest rate set out for lenders to adhere to. Almost like a bureau of standards dictates the standards that certain manufactured goods must conform to, the APR dictates what lenders interest rates should be.

In the efforts to increase their clientele, lenders often show a lower APR rate. Whilst they’re charging you a lower interest rate, they’ll often have higher monthly fees which means you’ll end up paying the same, if not more, in the long-run.

0% Credit Card UK as with most countries is quite popular, but it’s important to remember that most lender companies, where they’re losing money in some areas, are making up for it in others. Thus the best way to find a 0% credit card UK or elsewhere that really has true money-saving value is to find out from your lender company what their long term costs will involve. Some companies might have a higher APR but their monthly fees and services are lower and thus will save you more long-term than a company who’s APR is 0%, but who’s fees are high.

A 0% balance transfer credit card is an equally sought after card. The combined joys of a balance transfer credit card an a 0% APR rate is naturally a fantastic product. But as mentioned before, it’d be wise to consider the fees and service charges on a 0% balance transfer credit card to ensure that your long-term costs are reasonable.

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