What are the lowest APR credit cards available?

With the average APR on credit cards standing at 25.0%, credit cards are often a far more expensive way to borrow money compared to personal loans. While credit cards can be expensive, they tend to be popular with consumers as they provide a convenient and easy way to borrow money, especially during times when money is tight.

Although it is never advisable to rack up debts on credit cards – tips on how to clear credit card debt can be found here – they can be a useful way to shop as under section 75 of the Consumer Credit Act they can offer more protection for consumers. As well as this, travel cards that do not charge foreign usage fees can be a cost-effective way to use cards overseas. Meanwhile, regular credit card users could benefit from using a rewards credit card as they allow users to be rewarded as they shop.

Whatever reason for using a credit card, for those who may not be able to repay their balance in full each month, it might be worthwhile to consider choosing a card with a low APR to help keep interest at a more manageable level.

Here we’ve highlighted the lowest APR credit cards available in the 0% purchase, travel and reward credit card charts.

The credit card in the 0% purchase card chart with the lowest APR currently comes from TSB, which offers 7.9% on its Advance Credit Card Mastercard. This card offers an interest-free period on purchases for three months. There is also a three-month interest-free period on balance transfers, which must be made within 90 days and to a maximum of 95% of the card limit. Borrowers should be aware that after the interest-free period has ended, a slightly higher rate of 7.95% APR is charged on balance transfers.

Credit card users looking to earn rewards while they shop will find that Tesco Bank has the lowest APR in the rewards credit card chart. Its Clubcard Credit Card with Low APR Mastercard offers 9.9% APR to borrowers, as well as enabling them to earn Tesco Clubcard points when they spend on their card. This card enables borrowers to earn one point per £4 spent, from a £4 minimum, in Tesco and one point per £8 spent, from an £8 minimum, outside Tesco. The points are converted to Tesco vouchers, which can be used towards shopping or exchanged for Partner Rewards. The card also offers no fees when used on Tesco travel money. A minimum income of £5,000 is needed to apply for this card.

Although travelling abroad is not permitted under the current lockdown rules, for those planning a trip in the future, a travel credit card can be a good way to avoid paying foreign usage fees. The lowest APR on a travel credit card is from NatWest, which offers 9.9% APR on its NatWest Credit Card Mastercard. This card, which is only available to existing customers, does not charge foreign usage fees when used in the European Union or worldwide. A £10,000 minimum income is needed to apply for the card.