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.