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You better shop around! Look for a low APR - Work & Wealth
What's the difference between using a credit card with an 18-percent annual percentage rate and one with an 8-percent APR?
You pay an additional $200 a year in finance charges at 18 percent--$360 versus $160 at 8 percent--assuming you carry a constant balance of around $2,000. The higher the APR, the more you pay to charge, which is why you should comparison shop for credit just as you do when choosing other services.
When shopping for a new credit card, compare costs and terms with those of cards you already have, such as the APR for charging purchases and for cash advances, the annual fee, the grace period (number of days between the end of the billing cycle and the payment-due date during which you can pay the balance without incurring a finance charge). And weigh charges for late payments, excess fees on cash advances and the cost of transferring balances. Before you switch to another card, ask your current card issuer to lower your APR and waive or reduce the annual fee. If you get "no way" for an answer, then apply for the card that best fits your spending and repayment habits. For example, if you usually don't pay your entire balance each month, get a card that offers the very lowest APR. If you always pay your bill in full, you won't incur finance charges, so look for a card with no annual fee and a longer grace period.
Many banks now offer credit cards with a low or zero-percent APR, so you can reduce your debt load and save money by switching to a card with a low APR and transferring the balance from the high-interest one. But to achieve maximum gain, you must make more than the minimum payment and curb the urge to say "charge it." Compare these Visa and MasterCard terms to see which one better fits your wallet.
Bank APR Annual Fee Grace
Period
(Days)
Pulaski Bank 5.50 $35 25
(800) 980-2265
Chase 5.9 none 22
(800) 242-7324 (variable rate
determined by Wall
Street Journal index
of prime rate plus
1.6)
Wells Fargo 0 to 5.9 none 20-25
(800) 869-3557 (intro rate for first 6
months; then prime plus
2.9, to 14.5)
Simmons 8.95 or 10.95 $35 ($25 for Arkansas 25
First National residents; no fee on
(800) 272-2102 10.95)
Bank One 4.25 $98 or none 25
(800) 347-7887 ("prime for life" or ($98 annual fee on
0 or 12 mos.) 4.25; no fee on 0)
To learn more about credit cards, log on to
federalreserve.gov/pubs/shop or
cardweb.com/cardtrak/surveys/lowrate.html.
COPYRIGHT 2003 Essence Communications, Inc.
COPYRIGHT 2003 Gale Group
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