Not all credit cards are born equal. Different cards have different
offers, features, and charges, and choosing a card is not as simple
as going for the one with the lowest advertised rate. Various types
of card are suitable for different types of use, and choosing the
right card for you depends on how you plan to use it as well as how
low the rate is, or how attractive the introductory offer.
Debt Consolidation And Credit If you intend to use the card mainly as a convenient way of
spending and usually clear your balance every month, then the
headline interest rate doesn't really matter to you, as you
shouldn't be paying any interest at all. Instead, make sure the
card you're planning to apply for has a long 'grace period' on
interest charges, giving you chance to pay your statement before
any interest is applied. Interest free periods should be at least
30 days and are more usually in the 50-60 day range.
Unfortunately, credit card companies offering lower typical APRs (Annual Percentage Rate) tend to have stricter credit check systems and are more likely to reject your application. With the uSwitch.com credit card comparison service you can compare the credit cards available that will accept applications from people with poor credit check results (or credit ratings). This will save you the hassle of having your applications rejected, which can also show up as a bad sign in future credit checks.
Check Credit Rating This kind of card user can also benefit from a cashback or
rewards scheme if the card is regularly used for purchases, and so
long as you avoid carrying a balance over you can actually turn a
profit from your credit card account.
Intelligent Finance has announced the launch of a new credit card, which offers a low life of balance transfer rate of 4.9% APR.
Improve Credit Rating If, however, you use the card as a kind of short term borrowing,
regularly paying off larger purchases over a few months, then a low
interest rate is attractive. A cashback feature might seem
attractive if you're making larger purchases, but it's rare that a
card's cashback rate will be anything like high enough to
compensate for a higher interest rate.
Barclays Bank credit cards now fall under the umbrella of 'base rate tracker' credit cards, which means their typical APRs vary with the base interest rate as set by the Bank of England. If interest rates go up, your card's interest rate will too. If rates go down, however, so will the cost of using your Barclays Bank card.
Credit Online Rating Report If you want to finance a single large purchase and repay it over
a year or so, then look for a card with an introductory 0% deal on
purchases that lasts long enough to clear your balance before
interest kicks in. Introductory deals of up to 12 months are now
common.
Credit Cards The GM Credit Card Get .00 when you apply and get accepted for a GM Credit Card! Also get 80 tickets into our competitions! The GM Card has one of the richest reward schemes in the UK, enabling Cardholders to earn Rebate Points at a rate of 3% which can be redeemed against the purchase price of a new Vauxhall or Saab. It also offers an attractive introductory rate and APR. [more...].
Credit Score Rating Scale Many people use a credit card's balance transfer feature to fund
longer term borrowing. If this applies to you, then you have a
choice between a 0% introductory deal or a long-term low rate. If
you can see yourself paying off your transfer in the near future,
then a 0% deal with a long introductory period is probably the best
way to go. If, however, you'll be repaying your balance over a
longer period, then a low balance transfer rate that is fixed for
the life of the balance can be a good deal. Many such cards feature
a rate much lower than other forms of unsecured finance such as
personal loans, and you don't have to worry about finding a new 0%
card when the introductory deal ends.
Our results show a typical Annual Percentage Rate (APR) for each credit card. A lendera s APR is used in conjunction with a system called risk based pricing. This means that they assess each individuala s circumstances and credit history before deciding what rate to offer the individual. However, if they quote a typical APR they have to give this to at least 66% of people that apply for it, so by law there is a reasonable chance an applicant will get the rate stated.
Bad Card Credit Credit People Most people use their card in a mixture of ways, and this is
where choosing a card is more complicated. A low balance transfer
rate might mean having to pay a high rate on purchases, or a card
with a low standard rate might charge higher rates for cash
withdrawals. Fortunately, there's a new kind of card that is
becoming more widely available, which charges a simple flat rate
for all use, whether balance transfers, purchases, or even cash
withdrawals.
Free Credit Rating Report These cards often feature an attractively low rate, as there are
no fancy introductory offers or reward schemes to pay for, and so
they can make a very good option for the average card user.
Credit Rating Scale About the author: Nicholas Hunt is a contributing writer on
financial issues for 1Stop Finance UK where you can
compare credit cards and
apply for credit cards online.
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