Nowadays, credit cards tend to be something that can’t be done without. Many people in the US are not able to live without credit cards as this is the only way they can purchase things without cash. If you too are thinking of taking out a credit card, it is important to consider the credit card companies as they are eager to offer you credit. If you want to make the best decision about applying for credit cards, you have to be careful about the APR of the card; or the Annual Percentage Rate. The APR is the most important number that you should check as this determines the interest rates on the credit cards. There is an APR calculator that you may use in order to make calculations simpler and thereby live a debt free life.


What is the APR and why is it so important?


The cost that you have to pay for credit is is generally substantially more than the original purchase price. It is also important to learn how to evaluate the APR in order to make good decisions about your credit. The APR or the Annual Percentage Rate is the actual interest rate that is expressed as an annual rate. When you take out a credit card, you have to make sure that you compare and contrast multiple APRs so that you may be able to check which card will cost you the most, excluding the ATM fees, late payment fees and other optional fees. Irrespective of the interest rate on your card being calculated daily, monthly or annually, the Annual Percentage Rate is a standardized way of comparing the rates on various cards.


Using an APR calculator to calculate your payments


As mentioned earlier, the APR is the most vital number that should be checked before taking a credit card and hence you have to play with numbers more often when you use a credit card. There are various debt calculators and the APR calculator is one among them. You just have to feed in information to know how much interest rate you have to pay on the card in a single month and you can even compare and contrast the rates that are being offered by different credit card companies. Credit cards usually seem to have a high APR, ranging from 15%-40% and therefore if you don’t want to fall in credit card debt, using an APR calculator is worth using.


Ensure that you download the APR calculator from an authentic website so that you can trust the results and take actions accordingly. You can manage your money and make timely payments when you’re sure about the monthly payments.


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