Low Rate offers are often introductory only

Low rate offers are a great way of saving money on your credit card bill. A common practice with such offers is to move around from card to card, as soon as the offer runs out, so as to stay on a low rate constantly. This is where the familiar term card tart comes from.

There are two different forms of low rate introductory offers, which a credit card company can employ. Often they provide and highlight both deals to give customers the very best deal:

Low rates on normal APR – the introductory offer will be a certain amount below the standard APR (annual percentage rate) of the card. Often it will be zero percent for this period. However it should be noted, and always stressed that these offers are introductory only. After the initial period the annual percentage rate will rise and, if you are unaware, can suddenly be caught unawares by higher credit charges, which can really mount up. Therefore we would advise potential cardholders thinking about taking up one of these deals to make a very form note of when the offer runs out, and aim to pay the balance off, or at least reduce it, as soon as possible.

Low rates on balance transfers – balance transfer to obtain the best rate is quite common now in the UK, so another way of credit card customers offering deals to entice customers is in an introductory balance transfer rate, so customers can reduce their charge for credit. A point to note here is that, unlike the offer above, some companies offer the low rate for the life of the balance transfer, rather than an offer which runs out. This can be a very good deal, so be sure to check with your proposed credit card provider.

With these different deals it is always very important to remember that often, the low rate will run out, as it us usually temporary only. Think about it, if credit card companies always offered an ultra low rate, they wouldn’t be able to make any profit thus, sooner or later, your rate will increase where they recoup some of their initial losses. To avoid these increases causing problems look at the figures with your credit card balance and work out what the monthly payments and credit charges are, once the rate increases to the standard APR. Make sure you can afford this and be able to pay off responsibly.