This credit cards article is designed to provide you with factual information about credit cards that is not subject to marketing fads and short-term offers. We have provided a range of current credit card and business credit card offers alongside this article which provide some of the cheapest rates; however the primary purpose of this article is to provide you with long-standing information.

Unlike a charge card, a credit card grants the user a line of credit with the card issuer. A charge card requires balances to be paid in full each month. Whilst a credit card user is able to retain a balance unpaid at the end of the month, a charge is imposed by the issuer. This charge is usually based on an APR (annual payment rate). The specific method by which credit card charges on outstanding monthly balances will be detailed on the cardholders agreement that was taken at issuance. The typical method by which charges are calculated involve multiplying the agreed APR by the ADB (average daily balance) and dividing by 365. This figure is then multiplied by the number of days the balance was outstanding (“revolving”) before settlement of the balance was made.

A quick note on late payment charges for credit cards and business credit cards. Remember if your outstanding balance at the month end is even £1, you will be charged on the full balance as of the date of purchase until full settlement is received.

The availability of cheapest rate credit and zero percent balance transfers on credit cards and business credit cards was a phenomenon of the 90’s and 00’s. Since the effects of the credit crunch, the APRs on credit cards have risen in general and the availability of credit has decreased. Whilst the mortgage-backed securities held by banks have already been massively written down having been exposed as being impaired, the credit card receivables balances held by credit card issuers are yet to be announced as impaired (written as of May 2009). At Cheap Internet Loans, we expect to see heavy write-downs in these receivables balances as the unemployment rates in the UK economy rise.

If you have any questions regarding cheapest rate credit cards or business credit cards, please do not hesitate to contact us using our online form.