Best Credit Card Rate allures the customers towards it but he, in turn, needs to go through the terms and conditions before signing it because the rates may be deceptive.
Some of the terms associated with the best credit card rate are :-
Annual Percentage Rate (APR)
This is a yearly credit cost that a credit card holder is entitled to pay the card issuing company for acquiring the credit. It is expressed in percentage term. APR involves :-
(a) Actual rate of interest which is being charged on the outstanding debt amount.
(b) Additional fees charged on the outstanding debt amount.
Periodic Rate
This rate of interest is charged after a regular period of time. This could be on a monthly basis (costing of credit per month) or on a daily basis (costing of credit per day).
Teaser Rate
The credit card issuing companies, many a times, charge a interest rate much below the prevailing market interest rate. This is done in order to to allure the new or other credit card holding customers. These types of interest rates are generally introductory in nature and is only valid for a shorter period of time.
Fixed Rate of Interest
Fixed rate credit card charges a fixed rate of interest to the card holders for the entire period for which the customer holds the card. The rate at which the customer agrees to pay at the time of registering for the card is maintained through out the life span of the same.
Variable Rate of Interest
Rate of interest (variable in nature) charged by the card issuing companies to the customers after the non-payment of the outstanding debt after the grace period. These interest rates are liable to change from period to period.
On an average the credit card rate was 16% in Mar'05. Thus the rate below this mark was the best credit card rate.
Some of the Best credit card rates are :-
10.24% variable APR charged by “Platinum MasterCard” of “CME”
10.24% fixed APR charged by “Classic Visa” of “CME”
11.40% interest rate charged by “Mosiak Low Rate” of “Bank of Montreal”
11.40% interest rate charged by “Value” of “Bank of Nova Scotia”
13.24% variable APR charged by “ClassicPlus Mastercard” of “CME”
13.90% interest rate charged by “No-fee Value” of “Bank of Nova Scotia”
14.99% interest rate charged by “Platinum Card” of “Amex Bank of Canada”
15.44% variable APR charged by “Startcard Visa” of “CME”
You may visit capitalone.com, federalreserve.gov and alecu.org for more informations on Best Credit Card Rate.