Low Purchase Rate Credit Cards

How low purchase rate credit cards work...

A low purchase rate credit card is the no frills, easy to use, worry free credit card. These cards don't rely on gimmicks and special introductory offers to rope you in; they simply offer one low interest rate on your purchases.

The advantage of low purchase rate credit cards is that you needn't worry about paying back your entire balance every month, as there won't be heavy interest rates to ruin your finances if you don't.

Needless to say the most important thing on the list to look for when choosing these cards is: Which card has the lowest APR!

Having said this, there is - as with any credit card - more to it than simply choosing the lowest APR available. Low purchase rate credit cards can be a double edged sword, offering incentives on one side and charges on the other, a clever approach to coerce you in then take your money.

Positives (things that benefit you)

• Loyalty offers
• Check if a bank you hold a current or savings account with offer a low purchase rate credit card. Companies that do will sometimes give extra discounts on the typical APR for already being a customer with the company.
• Interest free periods
• Most companies will offer a gap between statements, in which, you can pay off the full balance and wont be charged interest on your purchases.
• Introductory offers
• They may offer a 0% purchase rate for an initial period, lower APR for a fixed term or other enticing extras. Work out if you are likely to use any of these and they could be very useful incentives.
• Rewards
• Cash back rewards can give you a little money back every time you buy something with your card, which in time could save you a packet over time.

Negatives (the sneaky tricks that are there to take your hard earned cash)

• Annual fees
• The sneakiest of the lot! Fees for simply holding the card, which are charged every year. A higher APR is usually a tell tale sign of an annual fee as fees are incorporated into the APR of a credit card.
• Cash withdrawal charges
• Cash withdrawals genuinely incur an elevated interest rate. It is best to use a debit card over a credit card for cash withdrawals, but it is nevertheless worth finding out how much it will cost you if you do have to use your credit card.

Compare low purchase rate credit cards