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The typical APR on the Barclaycard Long Term Balance Transfer Credit Card has been lowered from 16.9% to 14.9% (variable).

Plus, the typical APR applied to balance transfers, for the life of the balance, has been lowered from 6.5% to 6.3% with no admin fee to pay.

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  • 10
  • Apr
  • 08

APR stands for Annual Percentage Rate and is a very important term when it comes to comparing credit cards, loans and mortgages because it tells you how much you are paying to have the credit facility.

The world of personal finance is littered with complicated technical terms and abbreviations like APR. It’s not surprising that most people don’t understand what half of these terms mean.

Here at compareandsave.com, we believe that if you understand more of the terms used when talking about financial products, you will feel more in control of the products and services you choose to spend your money on.

This is why we have created our very own compareandsave.com glossary.

The glossary in itself can be used like a dictionary so you can search for the term you are having trouble understanding.

Additionally, complicated terms will be underlined in articles, guides and other items. If you click on these underlined terms, you will be sent to the relevant page containing the meaning of the word within the glossary.

If you have any suggestions for terms you would like to see defined, feel free to contact us to let us know and we will see what we can do.

Click on the link to start using the glossary
 

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If, like me, you are someone who pays their bills on time and have never been in any trouble you’re your providers, then you are in a very good position to get yourself some better deals. 

Reliable customers are what businesses need to keep going so they know they need to treat you well to make you stay.

Because of this, if you feel that there is a better offer elsewhere, and you tell your present provider this, they are bound to at least match it to stop you going. Why would they want to lose a customer that they know will pay them a guaranteed amount of money each month without any hassle?

I tried this with my credit card company some years ago. I had seen an interest rate offer of 14.9% advertised, miles better than the 21.9% APR I was originally given when I got my credit card 4 years previously.  So, I rang them up and asked if I was eligible for this rate and was told that it was for new customers only. I then said that I was not happy with this because for 4 years I had been the model customer and was therefore thinking of taking my business elsewhere as I was sure any other company would snap me up in a second.

I was then put through to customer retentions where I was offered 12.9% APR. This then allowed me to transfer my balance from my other credit card which has since saved me a substantial amount of money and allowed me to clear my balance a lot quicker.

This method is pretty universal and I have also received great results from trying it with phone and broadband providers. Why not give it a try and see how much you can save?
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  • 22
  • Nov
  • 07

Don't be caught out by low Typical APRs

When applying for an unsecured loan, the most obvious thing to do would be to choose the one with the lowest typical APR. STOP! The key word in the phrase 'Typical APR' is 'typical' i.e. the rate you would get in ideal circumstances. The loan companies work out your APR by considering certain pieces of information such as the amount you wish to borrow, your past credit history and the length over which you will be making the repayments. 

If, for example, the loan company offers loans between £1000 and £13000, a lower amount is less likely to get the typical APR. There is usually a midway figure that will be the least you have to borrow to qualify for the lower APR, say £7500 in our example above. Of course, on top of this a better credit rating will involve less risk for the company and will so also mean a smaller APR.

When you are looking for a loan you are likely to have a set amount in mind that you want to borrow e.g. £7250. Bearing the above in mind, it might be in your best interests to take out a larger loan of £7500 to qualify for the smaller APR. Then you could either repay the money straight back, if the terms and conditions allow you to, or keep it in a savings account to be paid back at a later date.

Why not try our 'compare personal loans' service.

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