In United Kingdom, Credit card providers charge a comparatively lower rate and also provide various rewards on credit cards.
Rate charged in United Kingdom on credit cards are very competitive in nature. Both banks and financial organizations issuing credit cards charge lower rates to attract new customers.
Most of the credit card providers also offer with a rate below standard rate of the card for a certain time period. After the completion of the duration, the rate again reverts to the standard rate.
0% APR for New Purchases:
Presently there are many credit card providers, who offer cards to new customers with a 0% APR for new purchases. For new purchases, if someone wants to make major purchases and at the same time also needs to extend the repayments over a few month time period, then he can apply for a card providing 0% for the purchases.
Low Interest Credit Cards:
As there are various options available for having a credit card in United Kingdom, so it is always better to choose a credit card charging a comparatively lower rate of interest. Many consumers pay higher interest rates on their spending on credit cards than present average APR.
As there are a large number of credit card providers, availing with a lower standard rates and introductory 0% offers, so it is always good to switch to a low interest credit card.
Compare Credit Card Rates by Major Providers:
Before deciding for a credit card, it is always good to compare the rates charged by major credit card providers in the country. In UK, American Express, Barclaycard, Cahoot, Egg, Capital One, Halifax, HSBC, Intelligent Finance, MBNA, Morgan Stanley, NatWest, Royal Bank of Scotland, Virgin plus are regarded as the major credit card issuers.
Trends in UK Credit Card Rates:
Rates charged on credit cards have fallen in the country over years. According to a research made by Datamonitor, average annual percentage rate (APR) charged by a credit card on new purchases fell to 15.6 percent in August 2003 from 20.1% in January 1998.
Entering of new players in to the credit card market in the country with a competitive rate has also compelled the existing providers to lower their APRs.
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