Quite A Bit Of Facts To Assist Consumers With Understanding Charge Card Account Annual Percentage Rates

It should come as no surprise that charge card accounts have become an extremely important factor to the financial stability of several people. The interest rates charged on charge cards should also come as no surprise to people. However, through my years of being a personal financial consultant, I have found that quite a few people are simply unaware of the different APRs that they may be charged as a result of using their charge card accounts. With that said, here is a list of the different kinds of annual percentage rates that people may be charged in conjunction with charge card accounts and which balances these annual percentage rates may be charged to. Promotional Interest Rates: The first type of annual percentage rate that consumers generally notice on charge cards is called the promotional APR. This annual percentage rate, designed more as a marketing tool, is designed to attract Americans to pay attention to a lenders charge card over the credit cards offered by competitors. Generally promotional APRs will be between 0% and 3% and will last from the day a credit card is activated to the end of the promotional period. Promotional periods generally last between 6 and 18 months. After this period, balance transfers will be charged the balance transfer or standard interest rate depending on the credit card account offer. Both of these annual percentage rates we will go over later. Pomotional annual percentage rates can also apply to a portion or all of a balance depending on the credit card type people are using. Standard Interest Rates: Standard annual percentage rates are often times well understood by people as their "charge card account interest rate" and the only interest rate they are charged. Unfortunately, this is not the case. The standard annual percentage rate will only apply to the portion of a credit card balance accumulated through standard purchases. This includes charge card account purchases such as those made at grocery stores, gas stations, restaurants, movie theaters and just about any other purchase people make on a day to day basis. Balance Transfer Interest Rates: Another type of interest rate that Americans are often charged is called the balance transfer APR. Which, well explains what it is. The balance transfer annual percentage rate is the annual percentage rate that consumers will be charged on balances accumulated through balance transfers. This interest rate is generally the same or lower than the standard APR however, in some rare circumstances can be higher than the standard interest rate. Cash Advance Interest Rates: The cash advance interest rate is one of those annual percentage rates that people generally don't give much thought to until they are actually charged them. The cash advance APR is generally the second highest interest rate that consumers will be charged as a result of using charge cards. The cash advance APR will be charged to balances accumulated through cash transactions such as ATM transactions, wire cash transfers, bank transfers, cash back at the grocery store, ect... Default Interest Rates: The final annual percentage rate that Americans may be charged as a result of using charge cards is the default APR. Default annual percentage rates are generally the highest annual percentage rates that Americans agree to associated with their credit cards. In most cases, default annual percentage rates are as high as 29.99%! Although, I know this sounds horrible, the good news is most Americans don't ever end up paying it. To be charged the default APR on a charge card account, people will have to default or do something wrong. Things like late payments, non payment, and spending more than the spending limit are all things that can cause Americans to have to pay the default APR. Therefore, if Americans use charge card accounts properly as intended, they will never have to pay the default annual percentage rate! I hope this article has answered any questions people may have had in regards to credit card interest rates. However, it would be ignorant to think that this one article could answer all questions about any topic. If you are one of the people that is still left with questions about credit card account annual percentage rates after reading this article, please feel free to visit the source of the information found here today, JEMCreditCards.com! The information found in this article was researched on JEMCreditCards.com: Best Skymiles Credit Card | Skymiles Credit Card Offers

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