Low rate credit cards can be appropriate for people who choose not to pay off their credit card bill in full, every month.
Holders of low rate credit cards pay one standard rate of interest which is usually lower than the rates standard credit cards charge. Representative APRs (Annual Percentage Rates) on low rate cards vary between 4.9% and 15% or more; interest rates on standard credit cards are usually higher.
Not everyone who applies for a low rate credit card gets one — it depends to some extent on the applicant’s credit record and circumstances. Although some card issuers charge a low rate indefinitely, others offer it for a defined period of time.
The card issuer may allow a card holder to transfer an existing credit or store card debt to their low rate credit card but will charge a ‘one-off’ balance transfer fee for the privilege of doing so. (Most low rate credit cards do not charge a yearly fee.)
To keep a low rate arrangement, card holders must, at the very least, make the monthly minimum payment on or before the date it is due and stay within their agreed credit limit.
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