High / Low Interest Rate Credit Cards

High Interest Rate Cards

Some types of credit card tend to have a higher interest rate than a standard credit card. These may include specialised credit cards, affinity credit cards and store cards. If you do not repay the statement balance in full at the end of each month on these cards, your debt will increase much more quickly than it would on a standard credit card, because the interest charge is greater. However, if you manage your debt wisely and always pay off the full balance each month, you may wish to take advantage of bonuses, discounts and rewards available only on these cards. For example, if you are a regular customer of a particular store you may wish to apply for their store card to take advantage of exclusive cardholder benefits. You should only spend what you know you can afford to repay in full at the end of the month, and set up a direct debit to pay off the total balance, if you want to ensure that you are not charged interest and late payment penalties.

Low Interest Rate Cards

There are many credit cards with low interest rates. These are usually reserved for people with excellent credit ratings, or for cards which charge an annual fee. For example, many premier cards and charge cards offer very competitive interest rates, in exchange for an annual fee. If you have a good credit history and are able to secure a credit card with a low interest rate, you will be able to spread out the cost of expensive purchases over a few months without facing excessive interest charges. Most credit card providers offer premier cards and / or charge cards to their customers, but you will typically need an excellent credit history to qualify.