Learn How To Find The Best Credit Card Deals in the UK|Best Credit Card deals in the Uk some 0% interest

Making sure that you pay the lowest rate of interest chargeable on your credit card usage is vital if you want to maintain an effective money management scheme. As such, knowing how to make sure you pay the lowest interest rate on your credit card should be viewed as an essential element to deciding which credit card you should select.

As we all know, credit card companies are not in the business of giving away a free service and one of the ways in which they make a big part of their income is charging interest on any balance you carry-over from one payment period to another. Although this interest is charged monthly, interest accrues on interest and consequently credit card companies are required (in most cases by consumer law) to advertise their interest rates not as a monthly sum, for example 1.9%, but rather as annual figure, for example 22%. Because the interest rate advertised is calculated over the period of a year, it is known as the Annual Percentage Rate, or APR for short, and is the quickest way of telling which credit card company charges the lowest rate of interest for using their card.

Having said this, there are a couple of additional things you need to keep in mind when comparing the APR advertised by different card issuers, namely:

Annual Fees

Does the issuer you are considering using charge any annual membership fees? This is an important question because some issuers can ‘hide’ fees payable for using their card in the form of an annual fee. Indirectly this allows them to lower their APR comparable to those issuers who do not charge membership fees. However, when you include the membership fee as part of the interest rate, often the amount you are being charged is higher than if you had decided to use the services of a provider that charged a slightly higher APR, but no annual membership fee.

Credit Rating

Your credit rating will affect the interest rate you pay on nearly all your borrowing and a credit card is no different in this regard. If you have a good credit rating, you should be expecting to pay less APR. Conversely, if you have a bad credit rating, you should not be too surprised if you find that you are being asked to pay a higher APR.

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It would be hard to emphasis how important making at least the minimum repayment on your credit card each month is. If you do not, you will likely find that your provider will increase the rate of interest you are being charged on your account. Sometimes this can occur even though it may not have been your fault that the payment was made late, for example you made the payment but it was received late, and without the provider being required to inform you that this default caused the interest rate on your credit card to change. It is, therefore, imperative that you read the small print of any application form you complete to check and see if the interest rate will change because of any non-payment or late payment and if the issuer will be obligated to inform you that the interest rate has changed.

Of course, the only way to make sure that you pay no APR on your credit card usage is to ensure that you clear your credit card balance each statement payment date. Unfortunately, however, most of us are cannot afford the luxury of paying off our credit balance each statement period and the card issuers know this. So, to make sure you are paying the lowest APR possible, read the fine print of the application form and make sure there are no hidden extra fees or charges and that the rate of interest you are paying really is the card’s advertised APR!

APR stands for Annual Percentage Rate. APR attempts to create a single figure of interest allowing the consumer to compare like with like when selecting the best product for their lifestyle.

Without APR it would be literally impossible to make this kind of quick comparison because the credit card companies use different calculations to compute their interest and other charges. Without APR it would be possible for a card bearing an ‘advertised’ interest rate of 12% (not APR) to be more expensive than one charging 16%.

Financial Regulators (such as the the UK’s FSA) have recognized this and as such have attempted to put in some safeguards to protect the consumer, making sure that there is at least some standard information allowing comparison between interest rates and other associated charges.

The main thing to remember is that APR takes into account not only the interest charges levied, but also any other costs that are also included. Credit card companies use different calculations to compute their interest and other charges, so APR makes it easier to make a good
credit card comparison between products. Generally speaking, the lower the APR, the less money you will end up paying back in interest to the credit card provider. It is very important to make sure you compare the APR of different credit cards when deciding which credit card to take out, as card issuers may offer a low rate of interest for an initial period but this will increase at the end of this period.

Any credit card deal will take the following items into consideration :
- the interest rate you must pay
- how you repay the loan
- length of the loan agreement (or term)
- frequency and timing of instalment payments
- amount of each payment
- fees associated with the product
- premiums for payment protection insurance (the lender may choose to make this compulsory)

Remember; if you are looking around for a credit card, you should try and get as low an APR rate as possible. However, be on the lookout for other costs; administration fees, legal fees or penalties you may encur for late charges. It is always wise to shop around for any deal involving finance, making sure that you consider all the options before signing on the dotted line. There are many ways to do this online, with many compenies offering comparison tables on each deal offered. These days you have no excuse not to, the information is freely available.

The law that covers credit agreements in the UK is the Consumer Credit Act (1974).

APR stands for Annual Percentage Rate. APR attempts to create a single figure of interest allowing the consumer to compare like with like when selecting the best product for their lifestyle.

Without APR it would be literally impossible to make this kind of quick comparison because the credit card companies use different calculations to compute their interest and other charges. Without APR it would be possible for a card bearing an ‘advertised’ interest rate of 12% (not APR) to be more expensive than one charging 16%.

Financial Regulators (such as the the UK’s FSA) have recognized this and as such have attempted to put in some safeguards to protect the consumer, making sure that there is at least some standard information allowing comparison between interest rates and other associated charges.

The main thing to remember is that APR takes into account not only the interest charges levied, but also any other costs that are also included. Credit card companies use different calculations to compute their interest and other charges, so APR makes it easier to make a good
credit card comparison between products. Generally speaking, the lower the APR, the less money you will end up paying back in interest to the credit card provider. It is very important to make sure you compare the APR of different credit cards when deciding which credit card to take out, as card issuers may offer a low rate of interest for an initial period but this will increase at the end of this period.

Any credit card deal will take the following items into consideration :
- the interest rate you must pay
- how you repay the loan
- length of the loan agreement (or term)
- frequency and timing of instalment payments
- amount of each payment
- fees associated with the product
- premiums for payment protection insurance (the lender may choose to make this compulsory)

Remember; if you are looking around for a credit card, you should try and get as low an APR rate as possible. However, be on the lookout for other costs; administration fees, legal fees or penalties you may encur for late charges. It is always wise to shop around for any deal involving finance, making sure that you consider all the options before signing on the dotted line. There are many ways to do this online, with many compenies offering comparison tables on each deal offered. These days you have no excuse not to, the information is freely available.

The law that covers credit agreements in the UK is the Consumer Credit Act (1974).