Low Rate Credit Cards - Credit Card Advice and Tips

We try and give credit card advice to those who want a new low rate credit card, or those that want a credit card change. We bring to you a selection of some of the top credit cards. These include some of the lowest rate Credit Cards available on the market today. Low rate balance transfer rates and fees are important but so are low interest rates, zero interest promotional rates, Use our credit card guide to give you a helping hand to choose credit cards that can suit you. Compare cards and apply online instantly easier than you think, within a few clicks you can find yourself one of the best credit cards. Still thinking which credit card, or you need to change credit card, then click here for low rate credit cards and credit card comparisons.

Choosing the right credit card

To get the most out of your credit card you should decide whether it's actually the best fit for the purpose which you intend to use it for. It's amazing how many people have a credit card that doesn't fit with their spending and repayment habits. As a result of this you can end up paying more than you need for the privilege. A low rate credit card can be extremely useful if you make it work for you and get the most out of it. Credit card issuers can sometimes manipulate their terms and conditions in order to claw back interest in other ways, make sure you always read the terms and conditions. The best way to avoid such tactics is to use a different credit card for each different purpose, that way you'll be getting the most from your credit cards. Which card is best for your own needs? Our guide below based on common spending and repayment habits may help you to decide which is best.

The credit card will often be used for purchases - sometimes it's the food shopping or the petrol station - but the debt will be cleared in full and on time each month.The interest rate charged in these instances is not particularly relevant unless there's no interest-free period. Many cards offer an interest-free period from the date of the transaction, this gives you some time before your payment is due. It's best to choose a credit card with no annual fee and if regularly spending on the card you might like to earn a reward or cash back. Reward schemes and Cashback levels can vary grealty. One of the best ways to make sure you'll always clear your outstanding balance is to set-up a direct debit for the full amount each month. This will help to ensure that you don't pay any interest on revolving balances.

This is for someone that likes spending on their card and are pretty good at clearing the balance from month-to-month, but occasionally may choose to carry a balance forward to the next month or statement. It won't hurt quite so much if you have prepared in advance by catering for this. In this situation it makes sense to choose a card that offers a low standard rate (this will mean that interest charges for those months when it is applied aren't too heavy). Try and choose a credit card with no annual fee, and a card with a reward or cash back scheme. Although these schemes are not always available on the credit cards with the lowest rates.

If you're regularly using your credit card and rarely or maybe never repay the balance in full your best choice of credit card might be with an introductory purchase rate or a low standard rate. Choosing a card with a low standard rate will help to save you money if you are not prepared to shop around when the introductory rate period expires on the card. If you have built up a balance on your existing credit card then it's time to consider changing to a credit card that also offers a special or low balance transfer rate. There are plenty of credit cards offering both a low introductory rate combined with a low balance transfer rate, The duration of the introductory offer will vary so is therefore worth comparing different credit cards and offers. Depending on the credit card introductory deals on offer separate cards for your purchases and balance transfers might be the best way to go. If you do go for an introductory rate then you'll need to change to a new low rate credit card once that introductory offer ends. If you don't do this you might pay interest at a higher standard rate. There are some credit cards with longer-term balance transfer rates, if you think you may be a bit slower to switch to another lower introductory rate on another card then this might possibly be a cheaper option.

Existing Credit Card debt which you're determined to clear

If you are determined to clear your outstanding credit card balance you need to assess how long this take you. If you were to only cover the minimum payment amount each month, your debt could potentially take years to pay off as you would potentially be repaying little more than the monthly interest charges. If you can pay off a bigger amount of the debt on a regular/monthly basis you would be clearing capital as well as interest being charged. This would mean that your debt would be reduced quicker.It is very important to find the credit card that would help you to save the most money. Switching to a great introductory rate really does make more sense as all the repayments made during this period would help reduce the capital outstanding on the credit card, therefore the outstanding balance will be much lower at the end of the introductory period. Ideally, once one introductory or promotional offer expires you could transfer your outstanding balance to a new credit card and as a result could continue to avoid interest charges.

Credit Card Cash Withdrawals

Withdrawing cash on credit cards is never recommended as generally this will be very expensive and can also incur added fees. You must make sure that you know the terms and conditions of your credit card and any applicable rates and fees before taking cash out on your card. Generally you would be charged from the date of the withdrawal (which would mean that there is no interest-free period).You could also be hit by a set fee or percentage of the amount withdrawn just for withdrawing cash. Sometimes credit card issuers do offer promotional rates on cash advances, sometimes as low as 0%, although consideration should also be paid to cash advance fees and conditions.

If you like to use your credit card when travelling or going on holiday you need to make sure you know how much it's costing you to use it overseas. Most credit cards have additional charges when they are used abroad. Credit card exchange rates are based on the Visa and MasterCard wholesale rates, with an additional percentage added by the card issuers. This can vary from 0% to 2.75% depending on which credit card it is. The actual rate applied may vary between countries so you need to be aware of it before you travel. The charges can be applied to withdrawals made at foreign ATMs as well as when your card is used to pay for goods and services. As it's an exchange rate it's in addition to the set fees in place for withdrawing the cash, and you'll pay interest at the standard or introductory rate for both cash withdrawals and purchases. When selecting a credit card for use abroad it's also worth paying some consideration to the other facilities on offer, such as the provision of a replacement card in the event of the loss or theft of your own. Extra benefits may include an international assistance package and insurance for flight delay, lost and delayed luggage and personal injury.