Low Interest Credit Cards

Low interest credit cards (also known as 'low rate cards') typically offer a flat interest rate on both balance transfers and purchases which is much lower than more generic cards. However, with these cards there is rarely an introductory '0%' deal, though some do offer some form of reward. These cards are perfect for those people who do not always pay their credit card in full every month, and do not want to be subject to the typical credit card interest rates.

 APPLY ONLINE

Credit Needed
Good
  • 0% interest on balance transfers and purchases (no fee on balance transfers)
  • 5.85% p.a. (variable) interest on purchases and balance transfers
  • No annual fee
  • Additional security shopping online with MasterCard® SecureCode™
  • Mobile Servicing app to keep track of your spending and available credit
  • Contactless payments
  • APR dependent on your personal circumstances
  • Must be a UK resident with annual income of at least £8,000, and no CCJs
  • AA Credit Cards are provided by the Bank of Ireland UK. AA Financial Services Limited is a credit broker and not a lender
  • Balance Transfers
    Intro
    0%
    3 Months
    0.00% Fee
    Purchase
    Rate
    0%
    3 Months
    Annual Fee
    £0
    Rewards
    No Rewards
    Representative
    APR (variable)
    5.85%
    APR

Representative Example: Representative 5.85% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 5.85% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • Low 5.9% APR representative (variable) on purchases
  • Earn Clubcard points wherever you use your card, plus your usual points in Tesco. Terms apply
  • Apply online and get a decision within 60 seconds
  • You must not have applied for a Tesco Bank Credit Card in the last month or have an application currently in progress
  • You must be a UK resident, aged 18 years or over, have a good credit history, and have an annual income of at least £5,000
  • Balance Transfers
    Intro
    0%
    1 Months
    0.00% Fee
    Purchase
    Rate
    0%
    1 Months
    Annual Fee
    £0
    Rewards
    Clubcard Points
    Representative
    APR (variable)
    5.9%
    APR

Representative Example: Representative 5.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 5.9% p.a. (variable)

  • Take control of your spending - Spread the cost of big purchases by setting up instalment plans (from 2 to 36 months), then pay them off in regular monthly payments
  • A low representative rate of 6.4% APR (variable) on purchases and balance transfers*
  • 0% fee on balance transfers made within the first 90 days (3% fee thereafter)
  • Apple Pay enabled payments
  • *Credit limits and interest rates will vary based on your individual circumstances
  • You must be a UK resident, aged 18 years or over, have a regular income, be free from CCJs, bankruptcy, and not be subject to an IVA
  • Balance Transfers
    Intro
    n/a
    Purchase
    Rate
    0%
    Annual Fee
    £0
    Rewards
    No Rewards
    Representative
    APR (variable)
    6.4%
    APR

Representative Example: Representative 6.4% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 6.45% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • Representative 6.4% APR (variable) on purchases & balances transferred
  • No balance transfer fee applies on balances transferred within the first 90 days of opening the account, a 3% fee applies thereafter
  • Worldwide use - accepted in over 36 million Mastercard locations worldwide<
  • Quicker payments with contactless technology
  • Apple Pay enabled payments
  • *Credit limits and interest rates will vary based on your individual circumstances
  • You must be a UK resident, aged 18 years or over, have a regular income, be free from CCJs, bankruptcy, and not be subject to an IVA
  • Balance Transfers
    Intro
    6.4%
    Balance Life
    0.00% Fee
    Purchase
    Rate
    0%
    Annual Fee
    £0
    Rewards
    No Rewards
    Representative
    APR (variable)
    6.4%
    APR

Representative Example: Representative 6.4% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 6.45% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • A representative rate of 6.4% APR (variable) on purchases and balances transferred
  • Worldwide use - accepted in over 36 million Mastercard locations worldwide
  • No balance transfer fee applies on balances transferred within the first 90 days of opening the account, a 3% fee applies thereafter
  • Apple Pay enabled payments
  • *Credit limits and interest rates will vary based on your individual circumstances
  • You must be a UK resident, aged 18 years or over, have a regular income, not be currently declared bankrupt, have any CCJs, or be subject to an IVA
  • Balance Transfers
    Intro
    n/a
    Purchase
    Rate
    0%
    Annual Fee
    £0
    Rewards
    No Rewards
    Representative
    APR (variable)
    6.4%
    APR

Representative Example: Representative 6.4% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 6.45% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • Low interest rate of 7.9% APR Representative
  • 0% on balance transfers for the first 3 months (0% fee for balances transferred in the first 90 days, 3% thereafter)
  • 0% on purchases for the first 3 months
  • 1% cashback on purchases if you also hold the TSB Classic Plus current account. Maximum cashback £5 per month until 30 June 2018 (terms and conditions apply)
  • Subject to status and Lending Criteria
  • Apple Pay enabled payments
  • APR and promotional periods may vary depending on your personal circumstances
  • Must be a UK resident, aged 18 or over, have a regular income, not be currently declared bankrupt, have CCJs, or be subject to an IVA
  • Balance Transfers
    Intro
    0%
    3 Months
    0.00% Fee
    Purchase
    Rate
    0%
    3 Months
    Annual Fee
    £0
    Rewards
    No Rewards
    Representative
    APR (variable)
    7.9%
    APR

Representative Example: Representative 7.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 7.94% p.a. (variable)

  • No need to worry about teaser rates that jump up and sting you when the 0% offer ends
  • One simple low rate of 6.9% p.a. (variable) on purchases and balance transfers
  • No balance transfer fees
  • MasterCard contactless enabled
  • Apple Pay enabled payments
  • £24 annual fee
  • You must be a UK resident, aged 18 or over, and have an annual income of at least £10,000
  • Balance Transfers
    Intro
    n/a
    Purchase
    Rate
    0%
    Annual Fee
    £24
    Rewards
    No Rewards
    Representative
    APR (variable)
    11.1%
    APR

Representative Example: Representative 11.1% APR (variable). Based on an annual fee of £24, a credit limit of £1,200 and a purchase rate of 6.9% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • No need to worry about teaser rates that jump up and sting you when the 0% offer ends
  • One simple low rate of 6.9% p.a. (variable) on purchases and balance transfers
  • No balance transfer fees
  • Contactless payment enabled
  • Apple Pay payments
  • £24 annual fee
  • Must be a UK resident, aged 18 years or over, and have an annual income of at least £10,000
  • Balance Transfers
    Intro
    n/a
    Purchase
    Rate
    0%
    Annual Fee
    £24
    Rewards
    No Rewards
    Representative
    APR (variable)
    11.1%
    APR

Representative Example: Representative 11.1% APR (variable). Based on an annual fee of £24, a credit limit of £1,200 and a purchase rate of 6.9% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • 0% foreign currency fees for transactions worldwide
  • 0% on purchases and balance transfers for the first 9 months (3% fee applies)
  • Representative 11.9% APR (variable) - Plus benefits from discounts on board Saga cruise ships, at Saga resorts and when booking Saga holidays
  • Manage your account online 24/7
  • You must be a UK resident, aged 50+, have a good credit history, and have a regular income of at least £12,000 per year
  • Balance Transfers
    Intro
    0%
    9 Months
    3.00% Fee
    Purchase
    Rate
    0%
    9 Months
    Annual Fee
    £0
    Rewards
    Saga Product Discounts
    Representative
    APR (variable)
    11.9%
    APR

Representative Example: Representative 11.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 11.29% p.a. (variable)

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Why Get a Low Interest Credit Card?

Low interest credit cards enable customers to transfer balances or purchases with their credit cards, safe in the knowledge that if they do not clear their full balance in any given month, they will only pay a relatively low amount of interest. This straightforward approach, where customers are not compelled to constantly track down the best balance transfer deal, or be stung with higher interest payments after the promotional period has ended, has made low interest credit cards an increasingly popular alternative to mass market balance transfers and 0% purchase card offers with credit card customers.

Who Offers Low Interest Credit Cards?

A number of UK credit card issuers offer low interest credit card products, so there's always a reasonable number of products to select from. As you would expect they are all slightly different. Some effectively fix what are in reality 'variable' interest rates, whilst others nominally link their interest rates at fixed points above the Bank of England base rate.

Check the small print with all of these products to see what rights the issuer retains to alter interest rates. You'll probably be surprised how much flexibility they retain to alter the interest rates they offer, and you have to make a judgement call about whether you expect them to raise rates (something comparison tables cannot help you with). Often it's the expectation of the public that they are treated fairly by credit card issuers, and the reaction issuers would get if this perception changed, that keeps product pricing at reasonable levels, but there is always a risk that issuers will increase pricing (because variable pricing is exactly what it says).

To ensure you get the right low interest credit card, it's essential you compare products. Comparison tables are very useful for this, as they collate many of the best products in one place and give details about what the initial rates on the products will be.

Of course, if you are happy to regularly track down the best 0% balance transfer products, you'll probably find that these products can offer a cheaper way of clearing a balance you have already accrued. There are also other alternative products that might suit your needs, which is why we detail many great UK credit cards in comparison tables by type.

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