What is a Credit Card Introductory APR Rate?

Credit cards have become an important part of our daily lives. Even though there are a number of campaigns that have specifically been targeted towards the general public to avoid any form of credit, this in actual fact is not feasible in the current day and age that we live in today. With rising expenses and pay cut in jobs, the need for at least one credit card could not be stressed enough. Even though we all need some form of credit card, that does not mean that you end up opting for the first one that comes across your way. Even though credit cards are known to act as a great short term loan, there are a number of schemes that are currently introduced into the market which end up costing you more than you expected. This is where a person is required to be a bit careful especially before you commit yourself to a particular package.

You might be thinking that if you realize after your application has been processed that the credit card you applied for is not worth using, you can simply cancel it. Even though you can cancel it, this is known to have a negative effect on your over all credit score. There are a number of different variables to consider when deciding which credit card to go for and which one to avoid. One of the most important factors is the credit card introductory APR rate. Before we look at the introductory APR rate in particular, it is important to understand what APR rates are in general. When ever you apply for a credit card, one of the first things that you should be on the look out for is the APR rate that you will be expected to pay on your card.

An APR rate in layman terminology is more commonly referred to as interest rates. When ever you buy something via your credit card, you are expected to repay the amount with interest. The amount you have to pay back in terms of interest is calculated using the APR rate. Seeing as we have now understood what a general APR rate is, it will be much easier to understand the importance of a credit card introductory APR rate. As I'm sure you have already figured out, the lower the APR rate the better as it means you will be paying a lower amount of interest.

What most credit card companies do is that they are known to offer a very low introductory APR rate to attract possible buyers. This introductory rate is known to be much lower than the standard market rate and is also known to apply for a limited time period only. In most cases the introductory APR rate can last anywhere between three months to twelve months depending on which lending company you have decided to go ahead with. Even though this may seem a great foundation to base your opinion on, there are other factors that you need to take into serious consideration.