Low Rate Credit Cards

If you are getting fed up with switching between 0% offers, why not consider a Low Rate Credit Card? There are currently several different types of low interest rate credit cards on the market so it is worth looking around for the best one to suit your needs and circumstances. Read More...>

• Sainsburys Low Rate

• n/a

• n/a

• 6.9%
  APR
  

• No Rewards

• 6.9% p.a variable on both balance transfers and purchases
• Rate only available to Sainsburys shoppers with a Nectar Card
• Good credit rating required

Representative Example: 6.9% APR representative (variable). Based on a credit limit of £1,200 and a purchase rate of 6.95% p.a. (variable)

• Barclaycard Platinum Simplicity

• n/a

• n/a

• 7.9%
  APR
  

• Rewards

• 7.9% p.a variable on all purchases and balance transfers
• Identity Protection Service - advice about protecting yourself from identity theft
• Good credit rating required

Representative Example: 7.9% APR representative (variable). Based on a credit limit of £1,200 and a purchase rate of 7.9% p.a. (variable)

• Capital One Click

• n/a

• n/a

• 9.9%
  APR
  

• Exclusive Rewards

• 9.9% p.a. variable on purchases, balance transfers and cash withdrawals
• Designed for online shopping - great brand discounts with eXtras plus
• Very good credit rating required

Representative Example: 9.9% APR representative (variable). Based on a credit limit of £1,200 and a purchase rate of 9.94% p.a. (variable)

• Lloyds TSB Advance

• 4.9%
  12 mths
  3.00% fee
  

• 0%
  6 mths
  

• 11.9%
  APR
  

• No Rewards

• Secure internet shopping
• Manage your account online
• Good credit rating required

Representative Example: 11.90% APR representative (variable). Based on a credit limit of £1,200 and a purchase rate of 11.95% p.a. (variable)

• Saga Platinum

• 0%
  9 mths
  3.00% fee
  

• 0%
  9 mths
  

• 11.9%
  APR
  

• Discounts on Saga and other products

• 0% foreign currency fees for transactions worldwide
• Manage your account online
• Best for applicants with a good credit rating

Representative Example: 11.9% APR representative (variable). Based on a credit limit of £1,200 and a purchase rate of 11.3% p.a. (variable)

Low Interest Credit Cards

There are two main types of low rate credit cards: cards that offer low rates for a fixed period of time on balance transfers and/or purchases, and cards that offer low typical APRs on the cards with no time limit.

The cards that offer low rates on balance transfers and/or purchases will fall under one of two subcategories: where the low rate is for the life of the balance transfer, i.e. until it is paid off in full, or where the low rate is until a set date. The typical APRs on these types of low rate cards will still be around 16-17% and some still offer 0% interest deals on purchases.

Additionally, this category of card does not generally charge a balance transfer admin fee because, instead of being given a 0% deal which includes a transfer fee, the user is paying interest on their balance from the time the account is opened, albeit at a low rate.

Some low rate credit cards will come with a fixed APR. This should bring reassurance in these times of economic uncertainty because you will know exactly how much interest you will be paying now and in the future.

The introduction of low rate credit cards will likely be welcome news for consumers looking to borrow small sums of money for a short period of time - in effect this type of credit card could be viewed as another way of taking out a cheap loan. Indeed, the interest rates offered by low rate credit cards will likely be better than those offered on loans if you are only looking to borrow smaller sums of money.

What's more, a low rate credit card will allow you to manage your cheap lending over a considerable time period leaving you in control of your debt repayments, safe in the knowledge that you can plan to pay off your debts over a longer period without it costing you a small fortune.

Cards with a low typical APR for as long as you have the credit card do not generally come with any 0% offers on balance transfers and purchases. To make up for this, these cards usually do not charge a balance transfer admin fee of around 2.5-3% when a balance is transferred over from another card.