Which Lowest APR Credit Card Can Really Build Your Credit

Lowest APR credit cards are not necessarily tools for building good credit. One blatant proof of that statement is the credit card scandals that overtook college campuses not far back. The students had been tricked by credit card solicitors on campus to get credit cards offering the lowest (zero) Apr credit card rates. It turned out that those rates were merely introductory. But the solicitors never informed the poor kids about that and so, by the end of the grace period, the students had more interest charges than they could afford to pay. No, not all lowest APR credit cards can build good credit!

Consider the genuine lowest APR credit card offers

On the other hand, there are lowest APR credit cards whose features and terms are genuinely devised to help people improve their credit ratings. These are the ones which uniformly offer low interest rates throughout the lifetime of the credit card. These lowest APR credit card start out with zero interest introductory rates which are replaced with rates as low as 7 % APR. However, the only persons who can avail of these cards are those who have fair credit records or no credit records at all. This includes people with outstanding credit ratings as well as those who are just starting to use credit cards.

How is it that this card is available for people without any previous credit card history?

Although these cards offer the lowest APR credit card rates, there is a range of rates that can be selectively applied to the peculiar financial situation of the card user. So, if you are just starting with credit cards, anticipate an APR that is mid-range, approximately 11 % – 13 %. 11 % translates to a fraction of 1 % in monthly charges while 13 % will get a little more than 1 % from you in interest monthly. The one thing you should remember if you are a beginner is to make a monthly budget for yourself and stick to it. Then you shouldn’t have any trouble in keeping up with your payments. All it takes is some discipline and perhaps common sense to realize your actual spending limits.

And then you have the lowest APR credit cards that don’t charge interest at all

There are high-end credit cards in which the lender foregoes having to calculate your interest charges. This type of credit card requires you to have a super-duper credit rating because it will be too risky for the lender to accommodate people who will not be able to pay the periodic fees that he will need to charge to earn something for his services. Mostly, the lender will earn his keep by requiring the lowest APR credit card holder to pay an annual fee. These can vary from one card to the next. In other words, you pay for your interest at the end of the year. The interest charge is not really an interest charge because it won’t be calculated from your total purchases.

Before availing of these absolute lowest APR credit card, you should trouble yourself to talk about it well with the credit card facilitator. Bring along someone who is familiar with lending language so that he can interpret the fine print in your contract. It is possible to get absolutely-zero-interest credit cards online but you will still have to print the contract and have it reviewed by someone knowledgeable before you commit yourself. Remember the college student’s way back?