Are low rate credit cards challenging loans

Monday, November 22nd, 2010
Updated: November 22nd, 2010
The content is accurate at the time of publication and is subject to change.

The annual percentage rate on your credit card depends on your credit rating. This means it can be anywhere between 0% – 40% and even more, varying drastically. However, low rate credit cards, when looked at from a different perspective are actually challenging the idea that credit cards are an expensive way of borrowing money. When it comes to the value delivered to the borrower, these low rate credit cards are even challenging the personal and secured loans.

The interest rates on loans are climbing steadily, which is why the low rate credit cards are standing out as a far better option for borrowers. There are 0% APR credit cards, but after the introductory offer, the interest rate jumps quite significantly posting a significant problem. On the other hand low rate cards have a low interest rate throughout until your debt has been settled. So instead of going for a loan from a bank with high interest or a 0% APR credit card where the timer is always running, it is advisable to go for a low rate card, if you want to borrow money at a fixed low rate and then pay it off at a pace that suits your finances.

The question to be asked however is whether these low rate cards are better than the personal loans or 0% APR credit cards. Finances are always relative and therefore, it varies from individual to individual. The credit cards with low rates mostly work better than the 0% APR cards purely because the customer is not racing against time, with a big risk waiting at the end of the time period. Many 0 percent credit cards are indeed offering 0% on both balance transfers as well as purchases. However, you have to repay the debt, before the rate on your card changes and if you don’t plan it well, you might end up paying a lot more interest.

The low rate credit cards can offers benefits over the secured and personal loans too. Unlike the loans, credit cards don’t need a fixed schedule for repaying the debt. If one month, your costs are high, you can postpone repayment to the next month. All you need to do is make the minimum payment and avoid being charged or damaging your credit rating. You have to make sure though, that you know what you want from your low rate cards, because terms and conditions on the cards vary drastically.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Low APR Credit Card News

Wednesday, September 30th, 2020

Finally, there is a credit card specifically designed for Generation Z which is to meet the needs of today’s youth. Meet a new no-annual-fee credit card with rewards – the X1 Card. The offer is described as “the smartest credit card ever made.” But what is so smart about it? Let’s figure it out. The […]

Friday, January 17th, 2020

The new year brought holders of the Chase Sapphire Reserve card sad news about an annual fee increase from $450 to $550. Still, this is not a cause for frustration, since the new year also means new perks! This week, Chase introduced a couple of nice benefits for holders of select credit cards, including the […]

Saturday, January 11th, 2020

At the beginning of September, Stripe, a San Francisco, CA technology company developing software to make and receive payments over the Internet, announced the launch of their new card for businesses. Now the Stripe Corporate Card is open to US-based companies. The Stripe Corporate Card is a Visa card issued by Celtic Bank. According to […]

Tuesday, June 18th, 2019

This week Amazon in cooperation with Synchrony Bank came out with their new Amazon Credit Builder credit card. It is not difficult to guess that the card is aimed at people who need to build or rebuild their credit. So, what is offered to them and is it really worthwhile?

Tuesday, April 9th, 2019

On March 25, Apple Announced their new Apple Card credit card. “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money,” said Jennifer Bailey, Apple’s vice president of Apple Pay.

Best Credit Offer
Best Credit Cards from
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 5 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 All Rights Reserved.

See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.