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Introducing Your New Credit Card There are hundreds of credit cards to choose from so selecting your first credit card can be a minefield. Many people opt for credit cards with low introductory rates to allow them to manage their finances effectively. Introductory rate credit cards are credit cards that offer a low introductory rate when people first sign up for the card. This rate then changes to a different rate - usually the standard rate - once the offer period has expired. Even if people are only looking at introductory rate cards, credit card choice can be difficult, as introductory offers vary widely. Here are the answers to some common questions about introductory rate credit cards. What Is The Introductory Rate?The introductory rate is the most important aspect of a new credit card. Some cards have a standard variable interest rate. Others have a fixed interest rate. An introductory rate is a discount off the fixed or variable interest rate for a credit card. For example, if a credit card normally has a rate of 13.9%APR, the rate may be reduced to 4.9%APR. In some cases, credit card companies offer an introductory rate of 0%. It's best to research the offer thoroughly to make sure it applies to all situations. How Long Does The Introductory Rate Apply?Most credit card companies give a particular date on which the offer expires. Others give an offer that lasts for a fixed period from the time someone opens a credit card account. This period may last anywhere from a few months to a year and the introductory rate may not apply in every situation. Does The Introductory Rate Apply To Balance Transfers?Many people apply for a low introductory rate credit card to ease the burden of their existing credit card repayments. Most credit cards offer introductory rates for balance transfers. It's best to make sure that the introductory rate can be used for balance transfers before applying for the card. Does The Introductory Rate Apply To Purchases?Most introductory rates allow credit card owners to transfer balances. However, some credit card companies offer a different introductory rate for purchases and others do not apply the introductory rate to purchases at all. In this case, the standard credit card rate will apply. How Long Does The Balance Transfer Rate Last?People who are looking to manage their money well may want to consider a card that has a permanent balance transfer rate. That means that the interest rate given when you transfer a sum of money applies for as long as that money is on the card. Can I Be Socially Conscious With An Introductory Rate Credit Card?Some credit card companies have ethical guidelines about the companies and industries they support. By using those credit cards people can be sure that their money is not being used to harm to environment, for example. Other credit cards allow people to support a charity or a good cause directly. In some cases the introductory rate for this type of card may be higher, so that the difference can be given to the chosen charity.
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