{"id":63497,"date":"2017-10-31T17:21:05","date_gmt":"2017-10-31T17:21:05","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?page_id=63497"},"modified":"2026-02-13T09:08:09","modified_gmt":"2026-02-13T09:08:09","slug":"low-interest-rate-credit-cards","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/credit-cards\/low-interest-rate-credit-cards","title":{"rendered":"Compare low APR credit cards"},"content":{"rendered":"

Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Defaqto.<\/p><\/div><\/article>

What is a low rate credit card?<\/h3>

A low rate credit card is designed to help you save money on purchases and existing card debt by charging less interest than most standard credit cards. It can be a good option if you often struggle to pay off your card balance in full each month while transferring existing balances to a card with a lower interest rate can also help you pay off your debt faster.<\/p>

Before applying for a low rate credit card, keep in mind that plenty of credit cards on the market charge no interest at all for a set period on purchases and\/or balance transfers. These are cheaper than borrowing with a low rate card, but you\u2019ll need an excellent credit rating to get the best deals. Plus, if you don\u2019t clear your balance before the 0% period ends, interest kicks in – at which point your borrowing can quickly become very expensive unless you transfer your debt to another 0% balance transfer card<\/a>. <\/p>

Low rate credit cards can be a good alternative if you\u2019ve struggled to get accepted for a 0% credit card or if you\u2019re worried you won\u2019t pay off your balance in full before the 0% deal ends. <\/p>

Use this guide to learn about low interest cards and their features and compare the latest offers.<\/p>

0% purchase deals<\/a><\/div>
0% balance transfer deals<\/a><\/div><\/div>

How do low interest rate credit cards work?<\/h3>

Low interest rate cards work in the same way as other credit cards, but they offer a lower interest rate. According to data from Defaqto, the average purchase APR (which includes card fees) on credit cards has risen to an all-time high of 31.1% APR, with the average purchase rate also reaching a record high of 24.83% p.a.<\/p>

In comparison, low rate cards offer standard variable rates as low as 12.9%. <\/p>

Many low rate credit cards offer a low rate for the life of the debt. This means there\u2019s no deadline by which you need to have repaid the amount borrowed before the interest rate jumps. However, this low rate is usually \u201cvariable\u201d \u2013 meaning that the card issuer may decide to increase or decrease it at any point (for example, if the Bank of England\u2019s base rate goes up or down). In some cases, the low rate might only be offered for a set time, say 3 years. After that point, the interest rate rises considerably.<\/p>

A low rate credit card can make good sense if you regularly pay with plastic and know you won\u2019t always pay off the balance in full each month. It gives you the flexibility to pay off your balance over time without the punishing high interest charges of other cards.<\/p>

If you always clear your balance in full each month, then the card\u2019s interest rate doesn\u2019t matter. That\u2019s because you\u2019ll almost always avoid paying any interest thanks to the grace period<\/a> that nearly all cards offer. In this case, you might be better off choosing a card with benefits such as reward points<\/a> or cashback<\/a>.<\/p>

What providers offer low rate credit cards?<\/h3>

Several providers offer low rate cards, including a number of high street banks. Currently, some of these providers include:<\/p>