# What is the Lowest APR on a Credit Card?

If you’re looking for the lowest APR on a credit card, there are a few things you need to keep in mind. First, different cards offer different APRs, so you’ll need to compare rates. Second, the APR is just one factor to consider when choosing a credit card – you’ll also want to look at things like fees, rewards, and perks.

To help you out, we’ve compiled a list of some of the best low APR credit cards on the market

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## APR Basics

Most people don’t understand what APR is or how it works. APR stands for Annual Percentage Rate, and it’s the amount of interest you’ll pay on your credit card balance. The lower the APR, the less you’ll pay in interest. In this article, we’ll explain APR in more detail and discuss the different types of APRs.

### What is APR?

Annual Percentage Rate (APR) is the cost of credit expressed as a yearly rate. APR includes the interest rate plus any fees charged by the issuer. The APR is the best way to compare different offers because it represents the true cost of borrowing.

When you’re considering a credit card offer, the APR is one of the most important things to look at. The size of your monthly payments and the total amount you pay in interest over the life of your debt will be determined by the APR. In general, you should try to find a card with the lowest APR possible.

However, it’s important to remember that the APR is only one factor in choosing a credit card. You should also consider other features like rewards, annual fees, and perks before making your decision.

### How is APR calculated?

The APR on a credit card is the annual percentage rate, which is the interest that you will pay on your outstanding balance. APR is calculated by taking the daily periodic rate and multiplying it by the number of days in the year. The daily periodic rate is simply the APR divided by 365.

For example, if you have a credit card with an APR of 12%, your daily periodic rate would be 0.0329%. If you had a balance of \$1,000 at the beginning of the year, you would accrue \$3.29 worth of interest over the course of 365 days.

The actual amount of interest that you pay will depend on factors such as your credit card issuer’s billing cycle and grace period. However, understanding how APR is calculated can help you compare different offers and make informed decisions about which credit card is right for you.

### What factors affect APR?

The Annual Percentage Rate (APR) is the cost of borrowing money, including fees, expressed as a percentage of the amount you borrow. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you will pay to get the loan.

When comparing loans, APR can help you understand the total cost of borrowing money. For example, two loans could have the same interest rate but different APRs if one has lower fees. Imagine that you are considering two loans, Loan A and Loan B:

-Loan A has an interest rate of 10 percent and \$100 in fees; its APR is therefore 10 percent + \$100/\$1,000 = 11 percent.
-Loan B has an interest rate of 12 percent and only \$50 in fees; its APR is therefore 12 percent + \$50/\$1,000 = 12.5 percent.

The key difference between these two loans is that Loan A costs more because it has higher fees. In this example, Loan B would be the better deal because it has a lower APR even though its interest rate is higher.

## Lowest APR Credit Cards

There are a few lowest APR credit cards on the market, but the best one for you depends on your spending habits and credit score. The best way to find the lowest APR credit card is to compare different offers and see which one best suits your needs. In this article, we will go over some of the best lowest APR credit cards and how to choose the right one for you.

### Capital One Platinum Credit Card

When you’re looking for a low APR credit card, the Capital One Platinum Credit Card offers some of the lowest rates available. This card features a 0% APR on purchases and balance transfers for the first 15 months, and then a variable APR of 13.49% – 23.49% thereafter. There is no annual fee and you can get a credit line increase after making your first 5 monthly payments on time. You’ll also get access to a higher credit line after making your first 10 monthly payments on time.

### Citi Simplicity Card

The Citi Simplicity Card is a great choice for those looking for a low APR credit card. This card offers a 0% APR on both purchases and balance transfers for the first 18 months, and then an APR of 14.74% – 24.74% Variable after that. There is also no annual fee and no late fees or penalty rates.

### Discover it Cash Back Card

The Discover it Cash Back Card offers one of the lowest APRs on the market, with a variable APR of just 13.49% – 23.49%. That means you could save a significant amount of money on interest payments if you carry a balance on your card from month to month. In addition to its low APR, the Discover it Cash Back Card also offers a generous cash back rewards program, making it a great choice for consumers who want to earn rewards on their everyday spending.

## How to Get the Lowest APR

The first step is to understand that the APR is the annual rate that you will be charged for borrowing money. This rate is determined by your credit card issuer, and it can be either fixed or variable. A fixed APR means that your rate will not change for the life of the loan, while a variable APR can fluctuate with the market. The second step is to understand that the lower your APR is, the less you will pay in interest each year.

### Shop around for the best deal

When you’re looking for a new credit card, it’s important to shop around for the best deal. The interest rate (APR) is one of the key factors to consider.

The APR is the interest rate charged on your outstanding balance, and it can vary widely from one issuer to another. For example, if you have a balance of \$1,000 and an APR of 20%, your monthly interest charge would be \$16.67. But if your APR was just 10%, your monthly interest charge would be half that amount – only \$8.33.

Of course, there are other factors to consider when you’re choosing a credit card, such as the annual fee, rewards program, and borrowing limits. But if you’re looking for the lowest APR possible, here are a few tips to help you find the best deal:

-Check with your current issuer first. If you have a good history with your current credit card issuer, they may be willing to offer you a lower APR than what’s available to new customers. It never hurts to ask!
-Shop around online. There are many websites that offer comparisons of credit card offers from different issuers. This can save you a lot of time and effort in your search for the best deal.
-Look for promotional offers. Many issuers offer introductory rates on balance transfers or purchases. These promotional rates can be much lower than the standard APR, so be sure to check for these offers before applying for a new card.
-Read the fine print. Once you’ve found an offer that looks promising, be sure to read all of the fine print before you apply. Some offers come with limitations and restrictions that could negate any advantage gained from a lower APR

### Compare APRs

Annual Percentage Rates, or APRs, are the yearly interest rate charged on a credit card balance. In addition to accruing interest on purchases, cash advances and balance transfers also come with an APR. This rate is determined by the credit card issuer and your creditworthiness. The average APR for all accounts is currently about 15%.

There are a few ways to get the lowest APR possible on a credit card. The first is to simply shop around for cards with lower rates. Many issuers offer introductory rates that can be as low as 0% for a limited time, which can be helpful if you need to transfer a balance or make a large purchase. Another option is to negotia

### Negotiate with your credit card company

One way to get a lower APR on your credit card is to simply ask your credit card company for a lower rate. You can do this by calling them or sending a secure message through their website. When you call, be sure to have your account information handy so you can quickly reference it if the customer service representative needs it.

It’s important to be polite but firm when you ask for a lower APR. Explain to the customer service representative why you feel you deserve a lower rate, such as you’ve never been late on a payment or you always pay your balance in full each month. If the representative isn’t able to lower your APR, ask to speak with a supervisor. You may have more success negotiating with someone who has the authority to make changes to your account.

If your credit card company won’t budge on lowering your APR, consider opening a new credit card account with a lower rate. You can transfer your balance from your old card to the new one and save money on interest each month. Just be sure to read the fine print before transferring your balance so you understand any fees that may be associated with the transfer.

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