If you have been paying even the slightest attention to the credit card offers that you come across so often you would have noticed that most of them mention something called intro APR.
Intro APR is generally for new customers
Well it denotes a special APR rate that is offered only to new customers who sign up before the introductory rates expire. This rate is applicable only to new customers for a specific duration of time.
More facts about intro APR
Intro APR rates are typically on the lower side and may even be up to 70% to 80 % lesser than the regular APR rates applicable for that same credit card without the promotional offer. Sometimes credit card companies also come up with zero percent annual percentage rates as a part of their introductory offer.
These intro rates are usually applicable only to new purchases initiated with that credit card within the promotional offer’s period. But some companies may also extend the low intro rates to balance transfers as well (or vice versa).
If you are thinking about signing up for a credit card because you are impressed with the intro APR rates, be sure to confirm whether these rates apply to balance transfers or purchases (or both). Read the fine print.
Focus on your priorities
The most important thing to note here is that these rates are not forever. So no matter how low the interest rates are now, they will definitely jump to double digits in the near future and that is where you should actually focus on.
Find out if the regular rates are going to be fixed or variable. All these factors will determine if the intro APR rates that you are being offered now are truly worth the excitement. Some intro APR rates could go as far as eighteen months. In fact, at DontSpendMore.com, you can find several credit cards with intro APR rates up to eighteen months.
I am only suggesting that if you ever decide to go with any credit card simply because of the intro APR rates, then compare with other cards and go for the one that offers a combination of lowest intro and regular APR rates.
Getting low or nil intro APR rates are a blessing for many of us. Just make sure that you utilize these concessions in the best possible manner and utilize the timeframe to your advantage. Pay off as much of the balance as possible during the low intro period. Ideally, you should try to become debt free within the promotional period itself.
Leave a Reply