Tips for Choosing the right Credit Card
by Shane Stock

Low Interest Rate Credit Cards - Tread carefully of you might be headed for bad credit

Low interest rate credit card market is currently being hotly contested. All the traditional banks have low interest rate offers however other issuers are making inroads into this space with very competitive offers.

These cards typically offer no rewards program for their credit cards. An interest free period on these credit cards is pretty much standard at between 40- 55 days, and generally have a late payment fee. Low interest rate cards are good for those people who:

• Generally have an outstanding balance on their credit card.

• Don't seem to be able to pay off purchases within the interest free period.

• Are not interested in receiving membership benefits

• Might be looking for flexibility in regards to medium term credit.

Many low interest rate cards are also offering 0% on balance transfer rates (generally for 6 months) . So if you currently have a high balance on and existing cards which you are trying to pay off, switching onto a card with a lower ongoing interest rate and low balance transfer rates is worth consideration.

Standard Credit Cards

Your standard credit cards generally offer a higher interest rate, membership rewards, interest free days on purchases (generally around 55 days), and a low balance transfer rate for an introductory period. In many cases these cards are what we have been holding for years and they are now coming under pressure with all the new low interest rate cards on the market.

These cards still have a place in the market and might be best for:

• People who are disciplined and pay the card balance off monthly

• Use the cards for convenience for everyday purchases.

Buying everything on your card and then paying it off within the interest free period allows you to obtain reward points and not pay interest charges.