APR, Interest Rates and Benefits- Your credit card, your way

When the big banks approach you in hope that you will join their business, so many factors are essential to be measured. However many individuals, at the thought of a credit card, feel tormented and daunted with so much to consider. Although there is a lot associated to owning a credit card, the choice can be made a lot easier when taking into account three simple elements: benefits, interest rates and APR%. These factors can help you choose the lowest credit card with the maximum benefits for you!

Benefits and rewards are often taken for granted with most individuals, as they tend to forget that lenders should provide incentives to customers for using their services. Different banks offer different types of reward benefits. Some such as Westpac offer points which customers can redeem for flights and other rewards such as appliances etc. However if you’re an individual who does not travel as often, other rewards are available whereby you can receive cash back for purchases made such as food or clothing. However in terms of benefits, you must evaluate your expenses and determine where they are most often directed to establish which type of rewards and benefits best suit you.

Interests rates are at the focal point in owning a credit card. Many individuals go into the real world blindly, not fully understanding the complications of a credit card. Most of these complications arise from the interests rates applied to the card. An interest rate, simply put, is the amount of money you will be paying back to the bank in turn for their service when using a credit card. Basically when a card is swiped in an eftpos machine, the funds used to purchase an item come from the banks supply of endless money. At some point in a month, you receive your credit card statement with all your purchases documented and a due date supplied for when you are required to pay back the bank for their used money. When paying back this money, a predetermined amount (known as the interest rate), is applied for which the lender generates a profits from the borrower.

Understanding interest rates is essential as the lower the interest rate, the more you will benefit as a borrower as you would want to pay back the lowest possible amount of money to a bank. Generally most banks offer a variety of credit and debit card options to help you optimize your money such as Westpac with their wide range including Altitude, Earth, Gold and Platinum cards.

APR% is the annual percentage rate that describes the overall percentage rate for the year on a credit card. There are two types to be considered including the ‘nominal APR’, which is the simple-interest rate for a year, and the ‘effective APR’ which is the fee and compound interest rate determined over the year. Both these rates are essential to be considered, as you as a customer, would want to pay the minimal amount in return for a banks services. The APR% is available to make it easier for borrowers to compare the rates offered by lenders and for loan options. Although the APR% may vary throughout the year, overall the intended assistance is there as it helps customers determine which lender provides optimal service for minimal payment.

Ultimately deciding which bank to go with when using a credit card is always going to be a daunting process which requires meticulous research however when you consider these three elements, your choice can be made a lot simpler.

Zero Interest Credit Card Advice

When consumers seek to tighten their budget, many  try to cut costs on their credit card. For those consumers, an interest free credit card may be the best alternative, as no excess funds are applied to the cost of accessing the capital. Read the rest of this entry »

Zero Interest Credit Card by Citibank

The Citibank Low Rate Platinum Credit Card charges zero interest on both purchases and balance transfers for the first six months of use. Unlike other platinum credit cards; the Citibank Clear Platinum Card provides users with a competitive low interest rate after the promotional period has expired.  Read the rest of this entry »

Bank Fees Exposed on 4 Top $0 Annual Fee Credit Cards

We all know that standard comparisons of credit card costs rarely reflect what you’ll actually pay to own a card. What you may not know is that with different spending and repayment habits, it’s likely that a significant proportion of anything extra that you pay to own a credit card will consist of fees. Today we check out 4 of the top $0 annual fee credit cards to see what’s hiding behind the glitz and glamour of that enormous upfront ‘zero’ …
Read the rest of this entry »

The Ultimate ‘Zero’ Credit Card – Woolworths Everyday Money

It really is the ultimate ‘zero’ credit card – a $0 annual, 0% on purchases and 0% on balance transfers. Of course, the fee-free honeymoon period has a time limit … but the Woolworths Everyday Money credit card really feels great to own for the first few months. Supermarkets can hardly be considered glamorous (yes, even in comparison to banks!), but Woolworths’ attractiveness rating has skyrocketed since this offer came out. Today we check out the ins and outs of one of the most seductive zero-rate credit cards on the market currently. Read the rest of this entry »