Creditcard rates
Credit card rate is the rate at which interest is applied in the credit card account. While choosing credit card, credit card rate is the most important factor. Many times we come to know about 0% rate being offered by credit card issuing company. Such rate, however, is for a limited period only and is called as introductory offer. Actual credit card rate is applied after such offer ends. Credit card rate can be understood with respect to two types of transactions. These are balance transfer and purchases.For carrying out these two transactions, credit card user is required to pay some fee and this fee affects the overall credit card charges in a significant way. Let us discuss these two rates with help of examples.
Balance transfer rate is the interest rate applied on amount used for transferring balance from one credit card to another. Most of people have more than one credit card and they use balance transfer facility for ensuring minimum charges. There are many credit card companies in market that offer 0% balance transfer rate for an introductory period. This introductory period varies from one card issuer to another. After the introductory period is over, standard balance transfer rates are applied. For example, Virgin Credit Card offers a 0% balance transfer rate for a period of 15 months and standard APR attached with balance transfer is 15. 9%.Similarly, Barclaycard Platinum is another credit card that offers a 0% introductory balance transfer rate for a period of 14 months and after than, standard 14. 9% balance transfer APR becomes applicable. Same balance transfer rates are applicable in case of Barclaycard One Pulse Special credit card.MBNA Platinum credit card offers a 0% balance transfer rate for a period of 14 months and regular APR attached to balance transfer is 15. 9%.
For most of people, credit card rates attached with purchase matter more than balance transfer rate. This is the reason why they look for cheapest purchase rate credit card while searching.There are many credit card companies that offer 0% introductory purchase rate and apply standard purchase rate after introductory period is over. For example, Halifax One Online Special is a credit card that offers 0% introductory purchase rate for a period of 12 months. Standard APR attached with purchases is 15. 9%.Similarly, HSBC Bank Credit Card charges an introductory rate of 0% for 12 months and typical APR attached is 15. 9%.First Direct Gold Card offers a 0% introductory period for 12 months whereas typical APR attached is 16. 9%. Bank of Scotland One is one of cheapest credit cards in United Kingdom.It offers 0% introductory purchase rate for a period of 9 months and typical rate attached is 9. 9%.
It is up to user what type of credit card rate he wishes to use while making selection. If a person makes purchases frequently by way of credit card and also makes payment in timely manner, it is better if he goes for credit card purchase rate.However, if a person uses credit card for purpose of balance transfer, credit card balance transfer rate should be given priority.
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