Low APR Credit Cards - Low Interest Rate Credit Cards | moneyfacts.co.uk

Compare low interest credit cards

  - Looking for a low APR credit card? Compare low rate cards here. Great if you don't want to keep having to transfer your balance!
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Compare the Best Low Rate Credit Cards

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APRInterest Free DaysAdditional InformationSearch all163 Credit Cards
 
Tesco Bank

Clubcard Credit Card with Low APR Mastercard
5.9%51 days
  • Earn Tesco Clubcard points for spending on your card
  • Rates dependent on credit rating
  • No fees on Tesco travel money
Details...
Go to Site
 
  Representative Example: Based on a credit limit of £1200.00 charged at 5.94% variable per annum for purchases. Representative 5.9% APR variable. 
Bank of Scotland

Online Platinum Low Rate Mastercard
6.4%56 days
  • Emergency card replacement
  • £5 charge if you need to change payment due date
  • Manage your card online
Details...
Go to Site
 
  Representative Example: Based on a credit limit of £1200.00 charged at 6.45% variable per annum for purchases. Representative 6.4% APR variable. 
Lloyds Bank

Online Platinum Low Rate Mastercard
6.4%56 days
  • 24 hour customer service
  • Rates dependent on credit rating
  • Manage your card online
Details...
Go to Site
 
  Representative Example: Based on a credit limit of £1200.00 charged at 6.45% variable per annum for purchases. Representative 6.4% APR variable. 
Halifax

Flexicard Mastercard
6.4%56 days
  • Instalment plan is available online
  • Rates dependent on credit rating
  • Contactless payments available up to £30
Details...
Go to Site
 
  Representative Example: Based on a credit limit of £1200.00 charged at 6.45% variable per annum for purchases. Representative 6.4% APR variable. 
Barclaycard

Platinum Low Rate Visa
6.9%56 days
  • Low rate of 6.9%
  • Can't change payment due date
  • Contactless payments up to £30
Details...
Go to Site
 
  Representative Example: Based on a credit limit of £1200.00 charged at 6.9% variable per annum for purchases. Representative 6.9% APR variable. 
MBNA Limited

MBNA Low Rate Credit Card Mastercard
8.9%56 days
  • Low APR of 8.9%
  • No balance transfers from MBNA cards
  • Contactless payments up to £30
Details... 
  Representative Example: Based on a credit limit of £1200.00 charged at 8.9% variable per annum for purchases. Representative 8.9% APR variable. 
NatWest

Credit Card Mastercard
9.9%56 days
  • No foreign transaction fees
  • Rates dependent on credit rating
  • Manage your card online
Details... 
  Representative Example: Based on a credit limit of £1200.00 charged at 9.9% variable per annum for purchases. Representative 9.9% APR variable. 
Royal Bank of Scotland

Royal Bank Credit Card Mastercard
9.9%56 days
  • No foreign transaction fees
  • Rates dependent on credit rating
  • Manage your card online
Details... 
  Representative Example: Based on a credit limit of £1200.00 charged at 9.9% variable per annum for purchases. Representative 9.9% APR variable. 
Clydesdale Bank

B Credit Card Mastercard
9.9%59 days
  • Low APR of 9.9%
  • Higher rates for cash withdrawals
  • Secure online shopping with Mastercard SecureCode
Details... 
  Representative Example: Based on a credit limit of £1200.00 charged at 9.9% variable per annum for purchases. Representative 9.9% APR variable. 
American Express

Rewards Low Rate Credit Card
9.9%56 days
  • Spend £500 in first 3 months for 5,000 Membership Reward® bonus points
  • Cannot change payment due date
  • Contactless payments up to £30
Details...
Go to Site
 
  Representative Example: Based on a credit limit of £1200.00 charged at 9.9% variable per annum for purchases. Representative 9.9% APR variable. 
Creation Financial Services

Creation Everyday Credit Card Mastercard
12.9%50 days
  • Low APR of 12.9%
  • No balance transfers from Creation Financial Services cards
  • Manage your card online
Details... 
  Representative Example: Based on a credit limit of £1200.00 charged at 12.9% variable per annum for purchases. Representative 12.9% APR variable. 
Creation Financial Services

Maximiles Mastercard
17.9%50 days
  • Earn Maximiles points
  • No balance transfers from Creation Financial Services cards
  • Manage your card online
Details... 
  Representative Example: Based on a credit limit of £1200.00 charged at 17.9% variable per annum for purchases. Representative 17.9% APR variable. 

Moneyfacts.co.uk Best Buys show the best products chosen by our independent experts. Where we have been able to we have also provided a link for you to apply online today. Products shown with a yellow background are sponsored products.

Disclaimer:
All credit cards are subject to the applicant’s status. The APR quoted is representative of the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you are offered may be higher, or you may not be offered credit. Fees and rates subject to change without notice. Please check all rates and terms before borrowing.

Moneyfacts.co.uk Limited is an independent credit broker not a lender. We will receive a payment from credit providers where customers link to them from Moneyfacts.co.uk. None of these arrangements affects our independence.

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Low interest credit cards explained

You'll always want to get the lowest credit card interest rate you can find, to minimise the extra costs of credit card debt. That's why we offer the above chart, which is ordered so that the lowest standard annual percentage rate (APR) on purchases found across the market sits on top.

So, if you're looking for a credit card that doesn't need to rely on an introductory term, and you're mainly interested in making purchases, have a look at the chart above. If you're not sure, read our answers to the most frequently asked questions below.

On this page:

  1. What are low interest credit cards?
  2. What types of low rate credit cards are available?
  3. What is APR?
  4. Will I get the advertised rate?
  5. Is a low rate credit card right for me?
  6. What is a low APR for a credit card?
  7. What charges and fees will I have to pay?
  8. Will my credit rating affect my eligibility for a low rate credit card?

What are low interest credit cards?

Low interest credit cards are here defined as the lowest APR credit cards available, so they are mainly relevant for those looking for a credit card to make purchases on. They differ from 0% interest credit cards in that they focus on the long-term rate rather than any temporary deals. That doesn't mean they don't have introductory 0% interest terms, however.

The main advantage of a low interest credit card is that you won't have to worry about the end of an introductory deal. This is ideal if you're planning to use the card in the long term, to keep adding and then paying off purchases while enjoying a low rate. Considering that switching cards can negatively affect your credit rating, choosing one card and sticking to it can be a great way of minimising any negative impact on your credit score, or even improve your credit score if you keep up with your repayments.

Like all credit cards, low interest rate cards are regulated by the Financial Conduct Authority. Among other protections, this means they fall under the Consumer Credit Act, Section 75 of which states that credit card providers are jointly liable for any breach of contract or misrepresentation by a retailer or trader. Because of this, you would be able to get your money back on purchases that are faulty or never arrive from your credit card provider if you don't get anywhere with the company or person you purchased from, provided they cost between £100 and £30,000.

One potential disadvantage is that low interest cards tend to require a high credit score, making it harder to be eligible for the lowest interest rate. They are also less ideal if you're looking at transferring balances from other credit cards, as not only will you have to pay some interest, their focus on APR means you might not get the most competitive balance transfer rate.

So, low interest rate credit cards can be great for those who just want one single credit card and are good at keeping up with repayments. They can shine as cards to use for emergency expenses, such as unexpected car repairs which you would need a few months to pay back. And some can even allow you to earn cash and other rewards.

What types of low rate credit cards are available?

Aside from the fact that they all have a low rate of interest on purchases, these cards can differ quite substantially. Some will come with introductory 0% interest terms on balance transfers to make them all-rounders, while others will offer attractive rewards to entice borrowers.

This means that you will have plenty of options when deciding on a low interest credit card, but also that you will need to take some time to compare your options in order to find the best deal for you. The Best Buy table above helps by showing you the deals with the best value in terms of interest rate, but you will have to click on the 'Details' to see if they also offer everything else you are looking for.

What is APR?

The APR on a credit card is the annual percentage rate on purchases, which takes into account the interest charged on purchases as well as any fees and other charges incurred throughout the year. You can read more about APR in our guide on the subject.

Will I get the advertised rate?

The advertised rate is the representative APR, which has to be offered to at least 51% of borrowers. If you are not one of those lucky borrowers, you may get a far higher actual APR. That's why you should always check your given rate before agreeing to a card.

The most important factor in deciding whether you qualify for the advertised rate will be your credit score. This is determined by previous debt and your general credit history. To find out how to improve your credit rating, have a look at our nine steps to improve your score.

Is a low rate credit card right for me?

If you are planning to use your credit card mainly for big purchases that you can quickly pay back, and you'd like to keep using the same card over the years, then a low APR credit card might just be for you. They can be ideal as an emergency back-up in case something breaks and you need to pay for repairs or a replacement fast, and if you choose one that comes with rewards, you might even get something more out of it, provided you keep up with repayments and pay off the debt as fast as you can.

If, on the other hand, you just have one or a few big purchases to make that you can pay off within a year or two, and you'd then prefer to cancel your card, you might want to consider a 0% purchase credit card instead, as you wouldn't have to pay any interest during the introductory term. Likewise, if you're looking to consolidate some existing credit card debt, you are less likely to qualify for a low rate card and would be better off with a 0% balance transfer credit card.

The main two questions you'll therefore want to ask yourself in deciding on a low rate credit card are: do I want a credit card I can keep for a long time, and am I able to keep paying off my debt in a reasonable timeframe?

What is a low APR for a credit card?

A low APR is generally a rate that is lower than the ones you'd get after a 0% interest deal expires. In comparing low APR credit cards to 0% deals, the rate after any introductory offers expire should be much lower on a low rate card, sometimes as much as half or more.

How low a rate you will be able to get will depend on the amount of competition in the credit card market, so there's no specific percentage that can be given. The easiest way to see what the lowest rates on offer are is by looking at the chart above. Moneyfacts researches the credit card market diligently and impartially to make sure that the deal at the top of the Best Buy charts really is the lowest one available to new customers across the UK, which is why you can trust us when choosing a credit card.

What charges and fees will I have to pay?

As usual, you will need to pay interest on purchases, balance transfers and money transfers, as well as transfer fees. There will also be charges for using your card abroad, which can be pretty hefty, and most credit cards tend to charge substantially for ATM use. Some cards may even charge an annual fee, so always check the fine print before applying.

Aside from these charges, it will of course be necessary to make the minimum monthly payment so you don't get penalised. If you can, it's always better to pay off your debt every month, as this will allow you to avoid as many extra fees and interest as possible.

Will my credit rating affect my eligibility for a low rate credit card?

Yes, as stated above, your credit rating will not only determine if you are offered the advertised APR, but also whether the provider will allow you a credit card in the first place. Low percent credit cards generally require a better credit score than other types of credit cards, so you should make sure your credit history is as clean as it can be before applying.

 
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