How Low Interest Rate Credit Cards Work
Low interest rate credit cards offer a lower than market average standard interest rate - or APR. This interest rate applies to purchases made with the card, and can be a way to save money for people who tend to roll a balance over from month to month.
How to Compare Low Interest Rate Credit Cards
When you compare low interest rate credit cards you should look for the credit card with the lowest typical APR or standard interest rate for purchases. You will also need to check the application criteria and only apply for a credit card you qualify for.
How to Use a Low Interest Rate Credit Card
Even though low interest rate credit cards offer the cheapest rates for long term purchase use, it's still important to try and keep a credit card balance repaid whenever possible. Also remember to bear in mind cash withdrawals as these transactions might be charged a much higher rate of interest than the quoted APR or rate for purchases.
A. The lowest interest rate currently available is 8.8% APR. However, the lowest rate possible is obviously a 0% promotional deal.
For regular credit card use where you do not always clear the balance in full each month – a standard low interest rate on purchases will probably be the best way to save money in the long term.
For short-term repayment of a large or several large purchases a 0% purchase credit card becomes the best way to save money. These deals are currently available up to 10 months.
Then for people with an outstanding balance – the best way to save money by choosing a low interest rate credit card will be on either a 0% balance transfer deal or a life of balance transfer deal. Read the full answer »
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