How important is APR
As with most financial products, credit cards are usually strongly encouraged on their interest rate, or APR. The decline of the RPA, the more attractive then is supposed to be for a potential customer. But is the APR really the most important element of a credit card? First, a sizable minority of people use their credit card exclusively as a practical means of payment for goods or services, and to clarify their balances in full each month. For this type of card use, the level of interest rate charged is relatively unimportant. It is more important that you have an interest-free period long enough to cover the time between expenditures and adjust your account, so you avoid paying any interest at all regardless of the price.
An interest-free period must always be greater than 50 days 55-60 days are common these days. If you belong to this group of users of the card, and you make a lot of purchases with your credit card every month, you should be going for a card that will reward you in a certain way ‘ use. One of the most common forms of reward programs lets you create points with every purchase, which can then be exchanged for discounts that purchases made at select stores or receiving free gifts, wine, or food. Another way to be rewarded for using your card is cashback.
Cards offering this feature actually gives you a discount on the order of 1% on everything you buy using the card, with the reductions that are stored and credited to your account generally once a year. For heavy clearly that spend most of their debt each month, a scheme such as this can be worth more than a percentage point or two off your normal rate. Another group of card users for whom the headline APR is not too important, those who make use of a feature balance transfer to move the debt of high interest card to 0% an offer to launch long-term or low-rate deal.
