Indeed, if a credit card is used properly, it can be the most powerful financial tool. But not everybody can afford all the expensive rates of most credit card issuers offer. This is where the low APR credit card ushers into help people who plan to maintain a balance on their account and not to pay the full amount monthly. But, what does APR stands for in a low APR credit card?

Basically, APR is the cost of credit as a yearly interest rate. APR stands for Annual Percentage Rate of charge can be used to compare different credit and loan offers. The APR on credit cards is usually calculated monthly based on the current amount in the card. The monthly interest is calculated as if the current card balance would remain the same over a year; the interest on the amount over a year (APR) is worked out and (more…)