Low interest rates for spending on credit cards

Many of the lowest rates for spending are seen to be on balance transfers, often as introductory deals.  There are in fact a lot of low interest rates for spending on credit cards.

The sort of card user who should be looking for this sort of card is a person who wishes to spend on a card and does not wish to pay off the amount immediately.  They may also want the flexibility that a credit card gives them compared to an unsecured loan.  If they shop around then the interest rates for spending on a credit card can be comparable to that of an interest rate on an unsecured loan.

People who are likely to be paying off most of their balance every month are more likely to be suited towards a cash back credit card or a credit card with rewards, as they can pay a considerable amount of the money spent back to the card holder.  These usually have higher interest rates and so are not suitable for people who wish to maintain a balance.

There are three types of low interest rates for spending.  The first is the introductory low interest rate.  This is for a period of months, usually between three months and nine months with a spending card.  These low rate spending offers will usually revert to the normal spending rate after this time, although there are some exceptions where the low rate is charged for the lifetime of the card even if later purchases are on a higher rate.  After this time is up then it is often the case that a card user who wishes to minimise on the interest rate that they pay will transfer the balance to a lower rate card.

If someone wishes to get a long term low rate card then there are quite a few cards that are on offer.  These low rates are higher than the introductory rates, but there is no need to shuffle around the cards and there is no penalty to pay if the timing goes wrong.  However a card user should be careful not to transfer any balances on to this card.  Not only will the interest rate be higher but the repayments will pay off the spending balance first, which means that the combined interest rate will be far higher than the card holder will expect.  All round low interest rate cards do exist, but their spending rates will be higher.