What is credit card APR?

Question

i got a discover credit card offer saying 0% APR until feb 2009.

ive never gotten my own credit card before, what other info is vital in signing up for one?

Answer 1

That means they won't charge you interest on any balance you carry until February.  Since you don't have a credit card already, let me offer you this advice:

Don't worry about an interest rate as you should never have to pay it.  Never charge more in a month than you can pay off when the bill comes.  This is how people get into debt that they can't get out of.  If you accept this advice and use it, then look for a credit card that has no annual fee, a grace period before it starts getting charged interest (some cards will start charging you interest as soon as you charge something), and a card that is universally accepted.  There are some places that you can't use Discover and, even moreso, American Express.

If you have never had a credit card before, try looking into a secured credit card.  Ask your bank if they offer one.  This means you would put, for example, $500 into a savings account and the bank would hold that money as security for the credit card.  They will give you a credit card with a $500 limit.  Use the card wisely, pay it off on time every month.  Keep doing this and you will build up a good credit report.  This will help you in the future if you need a loan to buy a car or home.  It takes time to build good credit so don't think that you can just do that later - when you need the loan, it's too late to build your credit.

Whatever you decide to do, try to deal locally with someone you can sit down and ask questions of.  You can try a credit union if you don't have a bank - they generally have lower fees.

Good luck.

Answer 2

APR stands for annual percentage rate.  0% for a few months is a good offer, but you should check what the rate chnages to after the promo period.  Discover Card is a pretty good card, but not all retailers accept it - not as much as Visa or Mastercard.

Answer 3

APR is "Annual Percentage Rate" so for the first 6 months you will not be charged interest then after that time you will begin to pay interest on any balance. The best way to use a credit card is to pay it in full every month or in 2 months to avoid getting trapped in the "minimum payment" zone - that is where you only pay interest and carry the debt - this will not improve your credit. Your credit will improve as you have "Open Credit" available so if the card you have is currently "Open" $5,000 and after 6 months of routine charging and payment in full your credit rating will be improved. The more "Open (Unused)" Credit you have the better your rating. Good Luck!