We've taken a further look at introductory rates on credit cards in part 2 of our guide.
Find out whether you'll be eligible for an introductory rate and which kind of rate is best for you below.
If you missed part 1 of our guide you can find it here.
39.9% APR Representative (variable)
Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender
Ultimately, this depends on your individual spending habits. For example, if you don’t have any existing debt on other credit cards and you’re planning on using your new credit card to make purchases online and in shops, you might want to consider either a cashback card or one with 0% interest on purchases.
On the other hand, if you’ve got existing credit card debt, you could make use of a card that gives you 0% on balance transfers as an introductory rate. If you’re currently paying interest on your credit card debt, paying a one-off fee to switch it over to another card could save you money. Just remember to clear as much of your debt as possible before the introductory offer ends.
Really, the introductory rate that’s best for you – if one is, that is – comes down to your own circumstances and spending habits. And when you’re looking for a credit card, you should apply for the one that best suits your all-round needs, rather than choosing based on the introductory offer alone.
“always shop around to find the most suitable type of card for you, and then compare rates and offers to see which is best...”
This all depends on a number of factors, namely your credit history. There are some lenders who specialise in people with a below average credit history, but, in general, the best introductory rates are offered to those with the best credit histories.
Each application you make for a credit card appears on your credit history – even if you’re turned down. Too many applications made close together can make you appear desperate to borrow, which can put lenders off when they check your credit history as part of their approval process.
Keep this in mind if you’re thinking of applying for a credit card with an extremely attractive introductory rate and your credit history isn’t in the best shape. There’s a fair chance you’ll be turned down, and this could act against you when you apply for a different credit card.
Always shop around to find the most suitable type of card for you, and then compare rates and offers to see which is best. You can use an eligibility calculator to get an idea of how likely it is you’ll be accepted for a particular card. Ocean QuickCheck lets you know if you’ll be accepted for our credit card before you apply – and it doesn’t leave a mark on your credit history.
Whether or not you’re applying for a new credit card, it’s important to check your credit history regularly to ensure everything is in order, especially if you’re thinking of applying for a form of credit at some point in the future. To do this, you can head to one of the three credit reference agencies; Equifax, Experian or Credit Karma.
The introductory rates offered by credit card providers can be very attractive, and may even help you save money. But it’s really important to keep to the terms of your agreement; otherwise the special introductory rate could be revoked.
Avoid this by making the minimum repayment on time each month, as not doing so could result in charges and damage to your credit history. The same could be the case if you spend beyond your agreed credit limit. And if the introductory rate that first attracted you to the card is terminated, you could just be left with an expensive card and no benefits.
39.9% APR Representative (variable)
Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender