Low Rate Credit Cards - Even If You Splurge You Do Not Fall In Debt Trap

What would you say were you are offered a card whose annual percentage rate is below ten percent? Would it not be manna from the heaven? Indeed, it is. In the market there are so many cards that have been introduced which carry very low annual percentage rate, and it is because of these rates that the cards are also called as low rate credit cards. Most of these low rate credit cards carry the APR which may be fixed in some cases, while in other cases it may carry some additional surcharge over the APR. Those having a low APR would have an annual fee loaded on to them, while in the other low rate credit cards, the minimum APR chargeable would be 7.5% and may go over to 10% it all depending upon the credit history. It has been observed that the cards which levy interest up to 8.5% APR have an annual fee on renewal, but the cards which have an APR above 8.75% do not an annual fee charged to the user.

Most of the low rate credit cards are co-branded cards and may be either a travel card or a leisure card or a holiday card and so on. In all the cases these cards come in association with the primary card holders, and some of the examples would include cards issued by a combination of an automobile company an airlines and the card issuing bank, and the example of this kind is the Biz Master Cards. It could also be a reward card which may have been offered by a supermarket promoter to reward the customer for being a loyal customer and the example would include Pathmark Card. The significant feature of low rate credit cards lie in the fact that they have reward points in some other intangible manner and it does not come in the form of cash back in general. As the rewards are in kind and can be in the form of an invite to a wine festival, a discount on a hotel stay, or a custom made suit, the low rate interest cards are favorites amongst all of us.

This article is courtesy of Credit-Wisdom.com, where you can compare low rate credit cards and apply for credit cards online.