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Compare Low Interest Rate Credit Cards

Find a Low APR Credit Card

Some Credit Cards offer low rates on balance transfers and purchases. These cards usually do not charge a handling fee for balance transfers too. Compare low rate credit cards today, Money Expert help you get the best possible price on the rates of credit cards, ensuring you get the best low rate credit card possible.

Find the best low rate credit card deal that suits your needs from leading UK banks and financial providers and apply online.

Our Expert choice:Barclaycard Platinum With BT

Our Expert Choice Credit Card

0% interest on balance transfers for 31 months from account opening (2.99% handling fee applies). A fee of 3.5% will be applied, then reduced to 2.99% by a refund.

  • 0% interest on purchases for 6 months from account opening.
  • Plus an additional £20 fee refund on balance transfers over £2,000 (terms and conditions apply).
  • 18.9% APR Representative Variable.

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Expert Choice Credit Cards
Balance Transfers Purchases
Credit Card Rate Duration Fee Rate Duration Representative APR Apply
Sainsburys Bank
N/A N/A N/A N/A N/A 6.9%Variable
Sainsbury's Nectar Low Rate Credit Card lets you collect even more Nectar points when you shop at Sainsbury's. Just remember to pay with your Sainsbury's Nectar Credit Card and swipe your Nectar card.Collect double Nectar points on your Sainsbury's shopping. Collect 2 Nectar points per £1 spent on Sainsbury's fuel. One Nectar point for every £5 spent on your card elsewhere. No monthly or annual fee. No cash advance fee on Sainsbury's Travel Money purchases.
Representative Example: If you borrow £1200 at a purchase rate of 6.95% p.a.(variable), you will pay 6.9% APR Representative (variable).

Sainsburys Bank | Nectar Low Rate Credit Card

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Royal Bank of Scotland
N/A N/A N/A N/A N/A 11.1%Variable
No confusing introductory offers. A simple, low rate for balance transfers and purchases – 6.9% p.a. (variable). No balance transfer fees – just one annual fee of £24. Representative 11.1% APR (variable).
Representative Example: If you borrow £1200 at a purchase rate of 6.9% p.a.(variable), with an £24 annual fee, you will pay 11.1% APR Representative (variable).

Royal Bank of Scotland | Clear Rate Platinum Credit Card

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NatWest
N/A N/A N/A N/A N/A 11.1%Variable
No confusing introductory offers. A simple, low rate for balance transfers and purchases – 6.9% p.a. (variable). No balance transfer fees – just one annual fee of £24. Representative 11.1% APR (variable).
Representative Example: If you borrow £1200 at a purchase rate of 6.9% p.a.(variable), with an £24 annual fee, you will pay 11.1% APR Representative (variable).

NatWest | Clear Rate Platinum Credit Card

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Lloyds Bank
4.9% 12 Months 3.0% 0.0% 6 Months 11.9%Variable
0% interest on purchases for 6 months. 4.9% p.a. interest for 12 months on balance transfers (3% fee) – if you spend £100 or more in the first 3 months. 11.9% APR representative variable.
Representative Example: If you borrow £1200 at a purchase rate of 11.95% p.a.(variable), you will pay 11.9% APR Representative (variable).

Lloyds Bank | Advance Credit Card

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MoneyExpert Ltd is a Credit Intermediary and receives commission payments for all credit cards referrals made on our website. This does not apply to Tesco Bank, NatWest and Royal Bank of Scotland. The rates displayed in this table are updated on a daily basis.

Low Rate Credit Cards

Credit cards work by allowing you to access an agreed amount of credit. You are effectively borrowing money from your credit card provider every time you make a transaction on your card. Most credit cards have an interest-free period and, as long as you pay your balance off in full during that period, you will not usually be charged any interest. If you have any balance outstanding you will be charged interest on it. This is where your credit card rate comes in.

What are low rate credit cards?

As already noted, most credit cards have an interest-free period. This is typically monthly and, if you pay your balance in full by the due date each month, you will not be charged any interest. If you have any balance remaining, however, you will be charged interest on whatever you owe. The amount you pay depends on your card's interest rate, expressed as an annual percentage rate or APR. The lower the APR, the less interest you pay on any outstanding balance.

There is no one particular interest rate that defines a particular card as a low rate credit card. A card can be considered to have a low rate if it is significantly less than average or to many other cards available on the market at any given time. Average rates can fluctuate depending on financial conditions and other complex factors so what constitutes a low rate can vary over time.

Low interest rate cards can also be thought of as cards that have a lower than average interest rate all the time. This differentiates them from purchase cards, which typically have a 0% or very low interest rate on purchases for a set period of time. After this period ends, they revert to their standard rates, which are usually comparatively high. Balance transfer cards are similar in that they offer a low or 0% rate on balances transferred from another card for a set period of time. Again, after this period they will revert to a standard rate that will usually be higher than that of a low rate credit card.

What are the benefits?

The main benefit of a low rate credit card is that it offers a preferential rate that will not revert to a higher rate after a set period of time. If you use your credit card regularly and do not always pay off your balance in full, you might be able to benefit from a low interest credit card.

There are some benefits that arise from making purchases on credit cards. These can include:

Convenience

Many people find credit cards more convenient to carry around and make purchases with than cash or cheques. They can also be used to make purchases online, over the phone or by mail order. Unlike a debit card you are able to make transactions (up to your credit limit) even if you do not currently have funds in your bank.

Purchase protection

Purchases made on a credit card that are valued between £100 and £30,000 are protected by rules set down in Section 75 of the 1974 Consumer Credit Act. If goods are faulty or do not turn up, perhaps because the supplying company goes bust, you may able to claim the money back from your credit card provider.

Worldwide acceptance

Credit cards are accepted in pretty much every country in the world. This can be a great help if you are travelling abroad and can also be used to make online purchases from various far-flung places.

It should be stressed however that even with a low rate credit card, you will still be better off if you can pay off your balance in full during the interest-free period. Paying no interest is obviously better than paying even a low rate of interest and it is only when you do not or cannot pay the full balance that you will really feel the benefit of low interest credit cards.

It can also be the case that financial and personal circumstances change and unexpected expenses can crop up at inconvenient times. Even if you fully intend to pay your balance each month, circumstances may sometimes prevent you from doing so. If this is the case, it can be better to have a low rate credit card.

It's also worth noting that your standard rate only applies to purchases. Purchases do not necessarily mean transactions where you buy a tangible item. If you pay for a service, book a holiday or buy a ticket for a concert or sporting event, these all count as purchases. Cash advances and balance transfers are the other kinds of transaction that you can usually make on a credit card. A cash advance is when you use your credit card to withdraw money at a cash machine and a balance transfer is when you transfer the balance you owe on one credit card to another. These will usually have different rates to your standard APR.

How do I find the right card for me?

There is no such thing as a perfect, 'one-size-fits-all' credit card. When you compare low interest rate credit cards the standard interest rate might be the most important factor. If you always pay your balance in full however, a card that offers other benefits such as points-based rewards or cashback might be better for you. If you already have a substantial balance on one card then a balance transfer card with a low or 0% balance transfer rate might suit. Similarly, if you wish to use your credit card to make a larger purchase, a card that offers 0% on purchases for a given period might suit your needs. You should bear in mind though that if you do not pay off the balance by the end of the promotional period, a card that reverts to a higher standard rate could cost you more in the long run.

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