Low Interest Credit Cards

With so many good deals available from lenders there's no real reason why you should be paying high interest rates on your credit card. Sure you can get a 0% rate or a 0% balance transfer but if you don't manage to pay off your outstanding balance during the introductory period you'll find the APR will soar to something like 15%-20% and that's a lot more than you would be paying if you had initially gone for a low interest rate card.

A low interest rate card does exactly what is says it does - it charges a low rate of interest and offers the cardholder stability and reliability. You can get low rate cards that have an APR of just under 10%, that's half what you can expect to pay on a 0% card once the introductory period is over, so a card like this is well worth considering.

Credit Rating

If you have a good credit rating you should have no problem in getting a low interest rate deal. The best type to look for is one with a fixed rate and not one that has an introductory offer that sees the APR rise considerably when the offer is up. If you don't pay off your balance in full each month then you should consider getting a card with a low interest rate. You could save a considerable amount of money annually as you will be paying considerably less interest. If your balance was say £3,000 you would pay around £300 interest with a low interest rate card, saving you £150 a year compared to a card charging 15% APR.

No Bells or Whistles

Low interest cards don't offer many incentives as part of the deal, but they do make budgeting easier in the long term. There's no scrambling to try and pay off your card before your introductory deal runs out, and a low interest rate card with a fixed rate also means your monthly payments will be less and could leave you with more money at the end of every month.

If you are looking for a card that gives you cash back, airmiles or any other rewards then a low interest rate card probably isn't for you. But if you want a card that offers stability and allows you to plan your budget then a low interest card will save you money in the long run and could be what you need.