Do Low Rates Beat no Rate Credit Cards?

The answer to this is yes.  Research has shown that a number of factors can make a low rate credit card a better choice than one that offers a period of 0 percent interest, find out why.

Transfer Fees

While the market is swarming with 0 percent balance transfer and 0 percent purchase offers, with the longest deal from Barclaycard giving customers 20 months 0 percent interest on their outstanding balance, these could be a false saving when looking at the transfer or booking fee involved.

Typically low interest credit cards do not charge a fee for transferring balances, and even though the fees charged by 0 percent credit cards is quite low, usually in the region of 3 percent, this can actually work out to be more expensive than the low rates offered on other credit cards.

Introductory Period

The other pitfall many consumers fall into is being tempted into 0 percent credit cards with this seemingly unbeatable offer without considering the APR typical after this period.

After the 0 percent interest introductory period ends, the APR variable often rises to extortionate levels, sometimes as high as 18 percent.  So for those who do not continue to swap credit cards after this period will see any outstanding debt accumulate a lot of interest.

Low Rate Credit Cards:

ï Barclaycard ñ The Barclaycard Platinum Simplicity Credit Card is an excellent low rate credit card, and alternative to a 0 percent interest offer.

It provides customers with 7.9 percent interest on all purchases and balance transfers with no handling fees.

This credit card also provides customers with a reward programme so they can make savings on their spending.

ï Capital One Bank ñ The Click Card from Capital One Bank is another good low rate credit card consumers could consider.

It provides customers with a slightly higher rate of 9.9 percent p.a variable on purchases, balance transfers and cash withdrawals.  Customers can also receive access to great brand discounts with eXtras plus too, with new discounts updated every three months.


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