| Low APR cards | | | | purchases, or cash advances you make - that |
| | | | make lots of money for the bank - will be |
| Low APR credit cards offer a far lower than | | | | paid off last so that you pay interest on |
| average rate of interest on balance | | | | them for as long as possible. This means that |
| transfers, without having to pay a fee to | | | | if you transferred £3,000 and then spent a |
| move your money. Although you'll still have | | | | further £2,000 on your card, any payments |
| to pay interest each month, this will only be | | | | you make against your debt will be first |
| around six per cent - a rate that will last | | | | allocated to the £3,000 you originally |
| for the life of your balance so there won't | | | | transferred, and which carries a lower rate |
| be an interest rate jump to watch out for | | | | of interest. The £2,000 will be left in |
| once the promotional period has ended. | | | | the account for as long as possible, |
| | | | accumulating interest at its higher rate. |
| Low APR credit card are good for people who | | | | |
| tend to regularly or only ever pay the | | | | How you spend |
| minimum amount off their debt. Different | | | | |
| credit cards might have attractive headline | | | | You need to be aware that certain types of |
| rates but they won't change your bad habits, | | | | spending attract different rates of interest. |
| so if you're not very disciplined with money, | | | | While you can rest assured that you'll pay |
| the chances are that you'll still have an | | | | the lower rate on your transferred balance, |
| outstanding balance when the interest free | | | | if you take out any cash, do any online |
| period runs out on your zero per cent credit | | | | gambling, or with some cards even buy gift |
| card. This will land you with a much higher | | | | vouchers, you'll end up paying an even higher |
| rate of interest all of a sudden - but with a | | | | rate than the standard APR - as high as 30 |
| low APR card you won't have to worry about | | | | per cent with some cards. And again, this |
| this. | | | | will be the last thing to be paid off from |
| | | | your debt. |
| Many also include the same benefits as 0 APR | | | | |
| credit card, offering interest free purchases | | | | Is this the card for me? |
| too. But there are still a few things you | | | | |
| need to consider when choosing your card. | | | | The ow interest credit card works best for |
| | | | people who either have a substantial amount |
| The rate on other spending | | | | to pay on their credit card, or who know they |
| | | | will only be able to pay a small amount off |
| If your card doesn't come with interest free | | | | each month. If you're considering one of |
| purchases, or you are out of the promotional | | | | these cards you should think about how long |
| period, you need to know the rate you'll be | | | | you think it will take you to pay your |
| paying on any more spending you do with your | | | | balance off - being realistic - and work out |
| low life-of-balance card. While your low ARP | | | | how much interest you will pay overall. Then |
| will stay in place until you've paid your | | | | you can compare this to the cost of a zero |
| transfer off, anything you spend on top of | | | | per cent card - remembering to include the |
| this will carry a higher rate. | | | | transfer fee and the higher rate of interest |
| | | | after the promotional period - to decide the |
| Where your payments go | | | | best option for your personal needs. |
| | | | |
| All credit cards carry "tiered" interest | | | | Make sure that you always read the terms and |
| payments. This means that when you pay money | | | | conditions of your card so that you know |
| off your card, it goes towards the "free" or | | | | exactly what you're signing up for and to |
| "cheap" debt first - those things that carry | | | | ensure that you don't get caught out on any |
| the lowest interest. Any higher interest | | | | instant cash transactions. |