If you want to take advantage of a low rate credit card, then now might be the best time to do so. Recently there have been some major changes in the world of credit cards; fees for services such as cash withdrawal and use of cards abroad have gone up, limits have been cut and more applications are being turned down. With the economic downturn currently affecting the market both in the UK and abroad, things may get worse before they get better. This means even more changes to the types of cards being offered. One type of card that may be affected is the low rate credit card.
Low rate credit cards are often seen as the best type of card to have. As their name suggests, they have a low interest rate, which remains low for the life of the card and not just for a limited offer time period. Because of this, balances can be paid off gradually over a number of months without the worry of suddenly having to pay a massively increased APR on top of the standard repayment charges. Having said this, because of the low rates, banks make less money on these cards and are only willing to give them out to an elite few.
When you apply for a credit card the bank offering the card will take a good look at your credit history, more commonly known as your credit 'rating'. The word rating is misleading because it implies a score of some type. Your credit history is a lot more than just a number. Your credit rating is held by three main credit-referencing agencies, specialising in monitoring people's financial 'character'. This report provides information on repayments that you made or missed, your credit limits, when you applied for cards and other relevant information. The decision to issue you with a credit card will depend on the report the credit card company receives from the referencing agencies.
If you still feel that a low APR card is the best one for you, there are ways to improve your chances of being accepted by the credit card companies. The most important thing to do is to improve your credit rating. Your credit rating data is held by three companies in the UK and is a record of your repayment habits, the amount of times you have applied for credit and so forth. It is checked by financial providers before you are accepted for any financial service. If you have a poor credit rating, you are more likely to be rejected for a card. In the past, financial companies have chosen to overlook minor flaws in an applicant's credit history. Nowadays, they are far more particular.
If you find that your credit history is less than glowing then don't panic - there are a number of things that you can do to improve it. As credit reference agencies monitor the way you handle credit, the best way to improve it is to deal successfully with other types of credit. For example you can apply for a store card and use it frequently, paying the balance off in full each month. Or you could take out a small loan. You have to prove yourself to be a model customer. As a result, you are more likely to be accepted for other cards in future.
Low rate credit cards are on the decline but they haven't disappeared completely. If you want one of these cards then you are going to need to work hard to improve your credit rating. If you work on your rating for a while and then apply for a card you may well find yourself being accepted. However, if you are rejected, do not apply for a card with a different provider immediately, as being declined is also recorded and can harm your credit rating. Work on your credit rating some more and apply again in three months time, when you have a better chance of being accepted. - 15224
Low rate credit cards are often seen as the best type of card to have. As their name suggests, they have a low interest rate, which remains low for the life of the card and not just for a limited offer time period. Because of this, balances can be paid off gradually over a number of months without the worry of suddenly having to pay a massively increased APR on top of the standard repayment charges. Having said this, because of the low rates, banks make less money on these cards and are only willing to give them out to an elite few.
When you apply for a credit card the bank offering the card will take a good look at your credit history, more commonly known as your credit 'rating'. The word rating is misleading because it implies a score of some type. Your credit history is a lot more than just a number. Your credit rating is held by three main credit-referencing agencies, specialising in monitoring people's financial 'character'. This report provides information on repayments that you made or missed, your credit limits, when you applied for cards and other relevant information. The decision to issue you with a credit card will depend on the report the credit card company receives from the referencing agencies.
If you still feel that a low APR card is the best one for you, there are ways to improve your chances of being accepted by the credit card companies. The most important thing to do is to improve your credit rating. Your credit rating data is held by three companies in the UK and is a record of your repayment habits, the amount of times you have applied for credit and so forth. It is checked by financial providers before you are accepted for any financial service. If you have a poor credit rating, you are more likely to be rejected for a card. In the past, financial companies have chosen to overlook minor flaws in an applicant's credit history. Nowadays, they are far more particular.
If you find that your credit history is less than glowing then don't panic - there are a number of things that you can do to improve it. As credit reference agencies monitor the way you handle credit, the best way to improve it is to deal successfully with other types of credit. For example you can apply for a store card and use it frequently, paying the balance off in full each month. Or you could take out a small loan. You have to prove yourself to be a model customer. As a result, you are more likely to be accepted for other cards in future.
Low rate credit cards are on the decline but they haven't disappeared completely. If you want one of these cards then you are going to need to work hard to improve your credit rating. If you work on your rating for a while and then apply for a card you may well find yourself being accepted. However, if you are rejected, do not apply for a card with a different provider immediately, as being declined is also recorded and can harm your credit rating. Work on your credit rating some more and apply again in three months time, when you have a better chance of being accepted. - 15224
About the Author:
Sophie Wright has been researching credit cards and the UK Card offers and is keen to create awareness about the offers availble to consumers by using compare credit card sites.
