Question 1

What is APR on a credit card?

Accepted Answer

APR stands for Annual Percentage Rate. It represents the annualized interest rate you'll pay on your credit card balance if you carry it over from month to month. In simpler terms, it's the cost of borrowing money on your credit card.

Question 2

What is a good APR for a credit card?

Accepted Answer

A good APR for a credit card can vary depending on market conditions and your credit score. Generally, an APR below 14% is considered favorable, but the best APR is 0%, which is often offered as an introductory rate on some credit cards.

Question 3

How can I qualify for a low APR credit card?

Accepted Answer

To qualify for a low APR credit card, it's essential to have a strong credit history and a high credit score. Lenders typically reserve their best APRs for individuals with excellent credit scores (usually 750 or higher).

Question 4

What is a balance transfer fee, and do all 0% APR cards have it?

Accepted Answer

A balance transfer fee is a one-time charge that some credit cards impose when you transfer existing debt to their card, even if they offer a 0% introductory APR. Not all 0% APR cards have this fee, but many do. It's essential to read the card's terms and conditions to understand if and how much you might be charged.

Question 5

Can I negotiate my credit card APR?

Accepted Answer

Yes, you can negotiate your credit card APR with your card issuer. If you have a good payment history and a strong credit score, you may be in a better position to negotiate for a lower APR. It's worth contacting your card issuer's customer service and politely asking if they can reduce your APR. They may consider your request based on your creditworthiness and history with their company.