Low Apr Credit Cards

Written by Jared Vincenti
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When applying for a credit card (or any loan) the most important thing to look at is the APR. This, the Annual Percentage Rate, is the rate at which interest will be charged on the balance of your card. On the average, an APR rate will be somewhere between four and twenty percent. Your APR will depend on your credit.

Getting a Credit Card with Low APR

Since credit card companies are competing for the business of people with good credit, the lowest APRs are reserved for those with perfect credit. From there, APR offers are made on a sliding scale, increasing slightly as the credit score of the applicant worsens. Most cards simplify this by offering four "tiers" of APR, given to people with A-tier credit, B-tier credit, and so forth.

This tier system will depend on the business that is issuing the card. When consulting a credit reporting agency, your credit is usually reported on the FICO scale, which is named after the Fair Isaac Corporation that developed it. This scale gives a credit score from 300 to 850, with higher numbers equating to better credit. The median score is a 725. Most creditors consider a score over 720 to be "good credit," while any score under a 600 is "bad credit."

These scores are assigned by credit reporting agencies, who collect their information from your past creditors. Under the Freedom of Information Act, you have the right to know your credit score. You can request a credit report from any credit reporting agency, and can often find a free credit report online.


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