Are cheap credit cards an easy way to borrow?
The answer to this question is “Yes” but for some people they can be a far too easy way to borrow and ultimately a very expensive one. Annual interest rates of more than three times the current bank base rate are by no means unusual among the big names among credit card issuers. How is interest calculated on my credit card account? This can be very confusing especially when you are trying to decide between competing offers from credit card issuers. You may see as many as three or four different interest rates quoted for each card. First of all you will be charged interest each month on the outstanding balance on your credit card account. Typically as of May 2007 this monthly interest charge will be between 0.75% and 1.5% giving us an annual interest rate spread of 9 to 18 per cent there are both cheaper and more expensive cards around but most fall within this broad range. However some apparently cheap credit cards quote low or zero interest introductory rates as a come-on to get the c
