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When you are in the market for a new credit card you need to know the card’s APR rate. This information is important because if you have any outstanding balances on your credit card that carry over from month to month you will be paying interest on this amount of money. APR is an acronym for annual percentage rate, which is the interest rate you will pay annually.

To break the APR rate down to a daily amount that you will pay, you need to divide the APR by 365 days. For example, if you have an outstanding balance of $100 dollars and your APR is 22% you will end up paying $22 dollars in interest per year. This figure also assumes that you are only making minimum payments, late fees and any penalty fees.

The APR on credit cards vary among lenders and can also be a function of your particular credit score. Generally, annual percentage rates range from 7% to 26%. Customers with high credit scores are more likely to be approved for a low APR credit card. Those with lower credit ratings often will have to settle for a card with a higher APR.

Be certain to read carefully the fine print on the credit card application that you intend to submit. Cards that have a high APR can literally bleed you dry of funds if you carry a substantial balance. Also, credit cards that have a reasonable APR can dramatically increase their rates if you are delinquent in your payments.

Credit card companies offer two types of APR rates: fixed rates and variable rates. Fixed rate cards have an interest rate that normally stays the same over time, although they can raise the rate if they inform you in writing. Variable rate cards have an interest rate that rises and falls with market fluctuations in the prime rate. The APR on these cards is normally the prime rate plus 4 percentage points.

The best place to find credit cards with the best APR rate is to search the Internet. All major credit card companies now have online websites with detailed information on all of their products. They even offer online applications that make applying for a credit card fast and easy. Once you submit an online application you generally get an email in a few days advising you whether you have been accepted or denied for the card.

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