RICHMOND, Va. (WWBT) - When it comes to credit cards, it all comes down to one thing. The APR.
APR stands for your Annual Percentage Rate, which is the interest you are charged on any balance that you carry-over or do not pay off each month.
If you pay off your balance in full each month, the APR doesn’t matter.
But Cherry Dale a financial coach with the Virginia Credit Union says it certainly doesn’t hurt to look for a card with a low APR-- just in case.
“Watch out for what we call ‘teaser rates’, Dale said. “Where they say zero-percent now but then after three months it will go up to 30% after six months it’ll go up again. You just want to be aware of the terms and the conditions you are applying for.”
Dale says it might be best to get a card through an institution you already know or work with, like a bank or credit union.
Dale says steer clear of the department store credit cards because of high APR’s.
Often, a credit card is the first way people begin establishing credit and building a credit score.
So make sure you know when an interest rate expires or if any fees ever kick in on a card.
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