When applying for credit cards in the UK consumers are faced with many choices. There are cards that offer 0% on balance transfers and others that contribute to a favourite charity every time they are used. You can even now apply for offers that build up reward vouchers to be spent in major high street stores. Just think…by using your credit cards you may never have to actually spend money on buying clothes, shoes or Christmas gifts ever again!
But, out of all the offers in the UK, two particlular deals have really grabbed the imagination of the British public. Far from wanting the prestige of platinum or others on which you can collect points, the main types of credit cards that are most popular in the UK are credit cards that offer 0% on balance transfers, and others that provide users with a low standard APR.
0% balance transfers
Credit cards that allow consumers to transfer their outstanding debt from other cards and store cards, and then offer zero-percent interest on the transferred balance for several months following are undoubtedly the most popular. A recent survey conducted by a well-known comparison site revealed that applications for these types of credit cards rose by a staggering 25% last year alone.
Why are these so popular?
Well, you don't have to be a brain surgeon to figure this one out! Basically, for people who carry a large debt forward month after month, interest on the outstanding debt will normally be charged on a monthly cycle. By opting to transfer the balance from their existing credit cards to 0% balance transfer offer, they are not charged interest. Depending on the terms & conditions of the 0% balance transfer card, some users may find themselves exempt from interest payments for up to 9 months following the transfer.
Consumers who move to 0% balance transfer card therefore save themselves money - lots of it. Moreover, holders of these types of cards also have the opportunity to make their payments count against the capital debt. This helps them to reduce the outstanding balance a lot more quickly than they would have been able to if they had to pay the interest charges as well.
Low standard APR credit cards
The second most popular types are credit cards that offer a continuously low standard APR. The APR is the standard rate of interest charged on the balance that is brought forward after the initial interest-free period expires. These types cards are "no-fuss" offering little in the way of discounts and introductory offers. They just provide a standard interest rate month after month, so users can easily see where they stand with their debts.
Currently, low standard APR credit cards are on offer with APRs as low as 5.9%. Seven types of low standard APR cards have an APR set below 10%.
