Low Interest Credit Cards

Getting into debt is inevitable at times. Financial pressures come unannounced. But even as you get into debt, it is prudent to take some manageable debt. The modern day consumer enjoys convenient methods of making purchases such as using a credit card. They can literally spend money that they don’t have. In light of this, we will highlight how you can use low-interest rate credit cards for your financial needs.

What Are Low Interest Credit Cards?

Low interest rates credit cardsA typical credit card in the UK could have an interest rate ranging from 12% to 30 % per annum. Low interest rate credit cards, as the name suggests, have a lower interest rate than the standard credit cards. They could offer a variable rate of 6% or even lower per annum. You could also find one at a promotional rate of 0% but for a specified period.

Some might be advertised in terms of Annual Percentage Rates (APR). When you see this terminology when looking for credit cards, it only signifies the yearly cost that you will incur when you borrow.

Advantages

  • Low interest payments: 0 APR credit cards are convenient for making purchases since they offer less interest on purchases.
  • Low or zero annual fees: you won’t expend on yearly payments on those cards hence giving you convenience.
  • Balance Transfers

Some card lenders may open the avenue for you to get a balance transfer to 0 interest credit cards. This entails the transfer of other high interest rate credit cards to low interest cards. This enables one to gain a lot in terms of savings.

Disadvantages

  • If your credit history is wanting, you will have a hard time getting the cards as no lender would readily give it to you.
  • Some are also available for a limited time. For example the 0 percent credit cards. Most of them are only available on promotions only.
  • The standard and cash interest rates are bound to fluctuate depending on the base rate of the Bank of England. However, for promotional credit cards, the changes may not apply.

Key Considerations When Comparing Credit Card Interest Rates

The annual fee

When looking for low interest cards, always check the yearly fee. Go for the one with the lowest annual cost. In addition to the low fee, check the rate on purchases. It doesn’t make sense to have a low interest rate card that has a low annual fee but a high interest rate on purchases.

Cash advances

Generally, when you make cash advances, you pay a higher interest rate than you would if you had made a purchase.

Promotions

As earlier mentioned, some of the 0 percent credit cards are only offered during promotions. The 0% may just be an introductory offer for a certain period after which the standard rates return. Thus, you can only benefit if you had planned your purchases to coincide with the promotion period. After the promotion, a higher rate will apply.

Other Charges

Some additional charges may apply when you use 0 APR credit cards. The fees may apply upon the use of the card at ATMs, online payment systems, or even foreign transactions. Ensure that you are aware of the additional charges that will apply.

How to Get One

We advise that you first do a thorough assessment of your financial situation as to whether you need to get into debt. If debt is inevitable, compare the options that are available to you and apply for the low-interest rate credit card.

At Bonsai finance, our value proposition is hedged on sound financial advisory. We understand that you don’t have to break yourself to pay the cost associated with credit cards. Our team of financial experts have analysed the various credit card options and are cognizant of the suitable 0 percent credit cards available in the market. Follow us for unmatched advisory on the low interest credit cards that are suitable for you.