Here are some helpful tips for lower APRs.
Credit cards can be a convenience and a helpful backup when used properly. Even so, you are paying for that convenience. A credit card is not free money; it is actually a line of credit. When you use your credit card, you are borrowing money from the credit card company until you can pay it back at a later time. If you cannot do so at the end of the month in which you made your credit card purchases, the bank or lending agency will add a fee.
This fee is a percentage of the money borrowed and is known as an Annual Percentage Rate (APR). You are obligated to pay back the APR in addition to the amount borrowed when you used the credit card.
It’s important to keep your percentage rate as low as possible to save money and get the most out of your credit card. There are a few ways to effectively manage your money and, more specifically, your credit. Here are 10 suggestions to help reduce your credit card annual percentage rate.