How Do You Get the Best Credit Card Rates?

If you're going to carry a balance on your credit cards, one of the most important factors is how low an interest rate you can get. The lower the rate, the easier it will be to pay off your debts. It is very much so worth some time comparing rates and fees.

The simplest factor to consider is the annual percentage rate you are likely to be charged. However, the actual rate you get may vary from the original quote in many cases, if your credit score is not sufficient. Most offers will note that the best rate is reserved for the best credit.
However, we'll assume for the moment that your credit is adequate to get something more or less along the lines of what is offered. You're not the sort to tell yourself that you have good credit when in fact it's a mess.

But there can be more to finding the best credit card rates than just looking at the APR. You also have to consider what you need the card for.
For example, if you are going to transfer a balance over from another card, what is that going to cost you? Are there balance transfer fees? What's the APR on balance transfers? How long does that last?

A lot of cards will offer a 0% APR for perhaps 12 months on balance transfers. Such a credit card is not particularly hard to find. You still need to consider what that balance transfer will cost you after the initial APR wears off. This can be a bad deal if the new interest rate goes too high after the introductory period and you haven't made much progress in paying off that transfer. On the other hand, if it lets you make rapid progress toward paying off old balances, it can be a great deal.

You should also check for fees. Annual fees are rarely worth it. They're more likely to eat up the difference in interest rates, and if you quit carrying a balance, they keep costing you money.
If you're already carrying a balance, a balance transfer is not the only way you can get a better rate.

Call your current credit card company and just ask for a better rate. If you have a good credit score you're likely to get it, especially if you make your willingness to go to another company clear. It only takes a short time to call and ask.

Choosing the Right Credit Card

In the UK finance markets there are literally hundreds of credit cards available. While a credit card can be useful if used correctly choosing the wrong type of card can be a costly mistake. There are many sites online that help you to compare credit cards but your first port of call should be to research and educate yourself on the options available. In this article we will look at the different types of credit cards on offer and how their suitability differs depending on your personal circumstances.

If you are in the fortunate position of being able to clear your credit card bill every month then there are several options open to you. The most important thing to check is that the credit card offers an interest free period, most cards offer an interest free period of around 45 days, although the period will differ slightly for each credit card company. If your card offers this interest free period and you can afford to clear your balance every month the interest rate of your card is largely irrelevant as no interest will accrue. In this case you should look at credit cards that offer cashback or a loyalty points scheme to actually get some benefit from using your card.

If your credit card is used regularly but you sometimes carry your balance over from previous months your best option is to go for credit cards with lower standard rate. As you will be aiming to clear the majority of your balance on a regular basis the interest will not build up too much. You should also look into the possibility of obtaining cashback or loyalty points but the low standard rate is the priority, any interest free period on purchases is also a benefit. If you fall into this category be wary of letting too much debt build up, dedication to clearing your balance as regularly as possible is essential.

If you are unable to clear your credit card balance on a regular basis then interest on your debts is going to build up. In this scenario a card with a low standard rate is important to prevent interest building up too quickly. If you are changing your credit card you should use a web comparison and seek out a card that offers an interest free period for new purchases and balance transfers. Many cards offer interest free periods of between 6 and 12 months. Although a fee of around 2.5% may be payable to transfer a balance you will still be saving money in the long term. If you fall into this category avoid making only the minimum repayment each month as this will nullify the benefit you receive in your interest free period

If you have debts on credit cards you are trying to pay off you should look to move your balance to a new credit card with a long interest free period on balance transfer, preferably 9-12 months. If you can combine this with making your monthly repayments as large as possible you can start to chip away at your debt without additional interest building up in the introductory period. While going down this route it is vital to avoid putting more debt on the card if possible. If this is not possible you should look for a card with an interest free introductory offer on purchases as well as balance transfers

If your personal circumstances have resulted in a poor credit rating which you want to rebuild you can look to acquire a bad credit credit card. These tend to have higher interest rate 29.9% is not uncommon. Taking out one of these cards can be the first step to rebuilding your credit history but using the card responsible is paramount. Your credit limit will usually be quite low, no more than £500 in most cases. By clearing your balance each month you can start to rebuild your reputation with the banks.