What Are The Lowest APR Credit Cards Available? | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 16/02/2021

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.

Borrowers should note that the APRs highlighted below are the headline rates, but borrowers may be offered a higher rate depending on their credit score.

Lowest APR purchase credit card

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.

All the 0% purchase card deals currently available can be found in our 0% purchase credit card charts.

Lowest APR reward credit card

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.

All the reward card deals currently available can be found in our reward credit card charts.

Lowest APR travel credit 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.

All the travel card deals currently available can be found in our travel credit card charts.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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