When it comes time to apply for a loan or mortgage, one of the biggest factors taken into consideration is that individual's credit history. While building credit takes time, sometimes even the slightest missteps can make a big impact on a credit, or FICO, score. Lenders look at credit records as a means of determining the liability of a prospective loan, and having a good credit history can put you higher on the rank of loan acceptability.

The Benefits of Low Interest Credit Cards

If you have little or no credit history in the UK, an easy way of establishing that is by applying for a UK credit card. For first-time card owners, credit card companies offer introductory periods of low or zero interest, which usually last between six and nine months depending on the company. Unlike federal interest rates, which are determined mainly by government departments, credit card interest rates concur somewhat with current rates, but vary vastly from company to company.

Depending on your spending habits, it may be easier to look at finance charge fees and other additional fees rather than just the annual percentage rate (APR). The APR applies mainly to the credit balance carried over each month. If you plan on paying off each months' balance, it may be wise to find a card with better benefits (mileage, purchase points, etc.) albeit a slightly higher APR.

If you have a poor credit history but still find yourself in need of a credit card, low interest rates are not entirely unmanageable. Despite setbacks in credit rating, there are still banks and lenders willing to help you get a credit card with a reasonable rate. It's a good idea to do some research online and find what card fits you the best.