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Tip of the Day Deal Directly with The Seller

Deal Directly with The Seller - When looking for a home to buy, it is often best to deal with the seller directly and avoid paying real estate agent's fees....

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Credit Card Apr Rates

When shopping for a credit card in order to assure the best possible match between a consumer and their credit card there are some particulars one should pay close attention to. First a consumer needs to understand the difference between the interest rate and the APR. The interest rate and the APR are different representations of the total cost of a credit card. Credit cards with a low interest rate are not necessarily the best fit because the interest rate is not the most accurate representation of the total cost of a credit card. The interest rate is the rate the credit provider is charging to extend credit to a consumer. The method of computing interest rates can vary from credit card merchant to credit card merchant. Each merchant offering a credit card will have their own formula for figuring interest rates; however this only includes the interest not the other expenses. The perks can be items such as frequent flyer miles, discounted purchases at stores or online, inexpensive car rentals, hotel discounts, dining, discounts, or travel discounts. The APR is the most accurate depiction of the total costs affiliated with a particular credit card. The APR includes the cost of interest and the additional costs. The additional costs may encompass finance charges, fees, and penalties. The method of figuring the apr on a credit card is a uniform and mandated formula. All credit card merchants have to compute the APR in the same manner. The Truth in Lending act contains the specific formula for configuring the APR . There are different types of APR(s): Purchase APR - which is the interest rate that will be paid for regular purchases, Balance transfer apr - which is the rate that will be paid on balances transferred from other credit cards, Cash advance APR - which is the rate paid for cash loans on a credit card, and Penalty/default APR - which is the rate that will be paid if a late payment is made. The best way to shop for credit cards is to compare each credit card by the APR, not the interest rate.

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