Credit Card Best ARP

June 4th, 2010

Finding the credit card deal with the best APR can mean you reduce the interest you pay each month and year, and turn what most people consider as a bad debt, into just another card in your wallet.

There is no need to try and search the country for the best deal on a credit card APR either because the only credit card you need to worry about is the one with the APR to suit you and your financial habits.

What is a Credit Card APR

So that you can make an informed decision about your credit card needs, find out more about one of your card’s most influential features, its interest rate. All credit cards have an individual APR, and some common features include:

• Annual percentage rate. APR stands for annual percentage rate because it is the interest rate you will earn over a full year of charges. Since the APR is a per annum rate, you will only earn a portion of that rate each month on the purchases which accrue interest, however, even that small portion can add up to a significant percentage.
• The APR is the cost of money. When you spend on your credit card you are using the bank’s money, and that comes at a price. The price is your credit card’s APR which is based on official interest rates and the bank’s own decisions about how much they think it will cost them to lend you unsecured funds on a credit card.
• Can be charged on any purchase or cash advance. Cash advances are not normally eligible for an interest free period, so they will attract their charge of the ARP right away. On credit cards with an interest free period, you will only be eligible for interest free purchases within the period set by the provider, and providing you paid your balance off in full in the previous interest free period.

What is the Best Credit Card APR?

Credit cards with the best APR will look different to different people. The way you use your card and spend and receive your money can dictate which credit card has the best APR for your needs. The best ARP on a credit card is:

• Charged for the way you use your card. Every credit card deal has different rates and different features for the different ways the cards can be used. A higher interest rate may be incurred on a card with a wider range of premium features, but if you won’t use those premium features in your everyday credit card use, then this is not the best APR for you. Similarly, the best APR may appear to be a low rate, but a low interest rate credit card typically won’t offer you rewards programs and special offers.
• A high interest rate. A high credit card APR could be best for you if you have a regular income, are diligent and organised, and if the card has a long interest free period. In this case you will be able to maintain regular payments of the full amount of purchases made on your card in an interest free period, and so you can avoid the APR all together. However, a low rate card won’t usually have the same long interest free period.
• A low rate for the perpetual spender. If you regularly rollover a balance on your credit card, the best APR for you is likely to be the lowest one you can find. This is because if you are not disciplined and you regularly take your card on a shopping spree, then you are not going to be able to afford to repay all of your purchases in a month. Therefore, even with an interest free period, you’ll still attract an interest charge, so that charge should be as low as possible.

Find out more about the current credit card APRs on offer from the best Australian providers, and narrow down your search of the one which is best for you using our comparison tables. You’ll also be able to apply in just one click from our comparison tables, as you are directed securely to an online application form for your chosen card.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)