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One of the main advantages of low standard rate cards is that they do not shock you with a sudden rate rise in interest rate once the introductory period ends. In fact, with most of the cards, the interest rate remains the same throughout. Low rate cards are available with annual percentage rates starting at around 7% – this compares with the average standard rate which is about 18%.
Why choose a low standard interest rate card?
If you’re the sort of person who doesn’t want to keep chopping and changing credit cards to take advantage of interest-free deals, then a straightforward card charging a consistently low interest rate is probably best for you. Most 0% deals revert to a comparatively high standard rate once the introductory period is up (between 15% and 20% APR) but there are credit cards that offer a permanently low interest rate of around 8% to 10% APR. This is very useful for anyone who carries a balance forward each month and particularly for those who usually repay in full but occasionally are unable to and don’t fancy being charged over the odds.
Low standard interest rate card, loan or 0% card?
Although the interest rates on these cards are low compared to other credit cards, they are quite high compared to more long-term debt solutions such as personal loans or lifetime balance transfer cards. Note also that it’s unusual for these cards to offer other incentives such as 0% introductory deals or cashback.