Print Article for : Low Interest Credit Card Uk

Your Online Guide » Credit Cards » Credit Card Interest Rates

[L650]Low Interest Credit Card Uk

by Drew Hanson, Dre

Low Interest credit cards are exactly what their name suggests. They charge low rates of interest (APR). The APR is calculated in the same way as with other credit cards; this facilitates an easy comparison for an individual who is planning to switch over to these cards. Low interest credit cards are favored by individuals who habitually carry their monthly credit card balance forward. Low interest rates can lead to significant savings on financial charges.

For the introductory period, most low interest credit cards offer 0% APR; however, most credit cards offer 0% APR only for select situations such as balance transfers and major purchases. The introductory period offer can be used for consolidating multiple credit cards that charge high rates into a single low APR credit card. This helps people to reduce the financial charges associated with credit card debts and pay off the existing balances quickly. Often, low interest rate credit card companies will waive the balance transfer fee upon a client's request. Thus, low interest rate cards with rates that can be up to 9 percentage points lower than those of other cards are a great way of saving for those inveterate shoppers who invariably end up with a monthly balance on their credit cards. It is also less taxing to take a cash advance with low interest credit cards. Individuals with poor credit scores may find themselves ineligible for low interest credit cards.

Low interest credit cards may or may not offer other advantages like cash back and travel insurance and should therefore be used with another card that does. This helps a card user to earn benefits from the other card which he may use when he does not intend to keep a balance; for other purchases, the low interest credit card can be used. It is advisable that the oldest extant credit card account that an individual has should not be closed for acquiring a low rate credit card; this is because maintaining credit accounts for long periods reflects well on the credit ratings.

There are several low interest credit cards available in the market. Individuals should do a thorough research to find a card that offers a perfect fit for their needs.

0% financing is advertised by every creditor that offers a credit card. Consumers need to understand however that this APR isn’t going to last forever. In fact it going to last about six months unless something goes wrong. At the end of the intro period, the APR of the card will increase to a level commensurate with the credit score of the consumer. If the consumer’s score was high enough to qualify for one of these offers, the APR should be good.

There are always fees associated with credit cards, and 0% offers are no exception. Below some of the more common fees will be looked at.

International transactions – When currency is exchanged by using a credit card, there is always a fee associated with it. If you are on vacation in France and make a purchase with your credit card that was issued in America, you will pay around 3% of the total dollar amount of the purchase in the form of a fee. This is important to remember because if you carry a balance, the fee is added to this and you could actually end of paying finance charges on a fee you received from financing something!

Minimum Finance Charge – If you carry a balance you will receive a finance charge. This means if you have $100.00 on your card, or 1 penny on your card you will be paying something. The minimum charge is usually around $1.00, so your penny could cost you a dollar.

Balance Transfer Fee – When transferring a balance onto a low interest credit card, there is a fee associated with it. This fee is in addition to any finance charges that may apply to the particular card. Pa careful attention to the APR of your balance transfer as it will be different than the standard new purchase APR that most are familiar with. The APR may be higher or lower, so be careful.

Late Payment Fee – This easy to understand fee is levied whenever a payment is late. This fee can range anywhere from $15.00 and up, but this is only the beginning of the problem. If a payment is made late during an intro period, the intro period is almost always immediately terminated and the APR increased. The creditor can also raise your APR as high as the default rate, which is somewhere around 33% on some cards. The lesson here is don’t be late.

Annual Fee – Annual fees were more common a few years ago, but many are still found today. This fee is often applied to a consumer’s credit card the second billing cycle after the card is received, or the first following an introductory period. Annual fees can be anywhere from $15.00 to over $100 dollars or more. Be sure to find out how much an annual fee is before accepting an offer.

The fees mentioned above are common, and most are so small that most consumers won’t give them much though. Remember however that every fee drains away a little more value from a credit card, and super low APR at the cost of fees that more than balance out the offer is no way to go.

Article Source : Pg. 2

About Author

Both Drew Hanson & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Drew Hanson has sinced written about articles on various topics from Credit Card Interest Rates. . Drew Hanson's top article generates over 1300 views. to your Favourites.

has sinced written about articles on various topics from . . 's top article . to your Favourites.