The Cash Back Credit Cards are ideal for those who clear their outstanding credit card balance regularly at the end of each month. If you fall into this category, then this kind of credit card deal will give you a % (e.g. 0.5%) of the amount you spend every time you make a purchase. Some credit card providers will even offer incentives such as Air miles.
However, if you know you will not be able to clear your outstanding balances every month, then its best to choose a credit card deal with a 0% APR. This type of credit card will give you time, anything from three to fifteen months, to pay off your outstanding balance without having to incur any interest on your repayments. Always check the Terms and Conditions because failure to make a monthly repayment may render the 0% APR deal null and void.
There is yet another credit card which will offer you time to clear your outstanding balance and this is the low long term rate credit card. The standard rate on this type of credit card often reaches 18% APR. So, by calculation, a long term rate in the region of 6.8% will make sense. However, these rates are not static and the credit card provider is free to change the rate at any given time.
If the low long term credit card doesn’t suit your need, then why not search for a credit card that offers a lifetime balance transfer deals with a low fixed APR such as 4.9%? This lifetime balance transfer credit card deal always remains at a low fixed rate until the amount transferred has been cleared. But if you already have a credit card and only want to transfer an outstanding balance on to new credit card offering a 0% APR balance transfer credit card deal, then keep in mind that there will be a balance transfer fee to pay typically ranging from 2% to 3% of the amount transferred.
So, whatever credit card you choose, make sure your choice is tailored to your needs and you don’t end up paying more interest than is required.
Syed Abedin is a mortgage broker and personal credit expert. His e-mail address is syzab@btinternet.com
Credit Cards UK
Tags: 0 APR credit cards, cheap credit cards, credit card, credit cards, credit cards uk
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