Learn more about low interest credit cards and whether they're right for you.
What are low rate credit cards?
Low interest credit cards offer a long-term low level of interest. Low interest rate cards can be as low as 6.4% APR*.
This is in comparison to 0% interest deals on purchases and balance transfers, where the low interest rate is usually for a set promotional period.
When the promotional period of a 0% interest card ends, the interest rate will go up to a standard rate. However, with low interest credit cards, the rate is usually set for the lifetime of the card.
What are the advantages of a low interest card?
Flexibility — if you usually pay off your bill in full every month, but think you might occasionally make a big purchase and carry a balance, you can have peace of mind knowing the level of interest will be relatively low
The rate is set for the lifetime of the card, making budgeting more straightforward
You don’t have to keep switching cards to take advantage of various 0% deals, and can avoid paying balance transfer fees
Low interest cards tend to carry a significantly lower annual fee than regular cards – sometimes there’s no annual fee at all
What should I be aware of?
If you have a large balance you want to pay off, a 0% balance transfer card could be of more use to you, so that you can substantially lower your balance without paying any interest
If you’re accepted for a low interest card, you may not automatically qualify for the advertised rate. Many lenders will assess your individual circumstances when you apply and will offer the lowest rates to those with better credit ratings. Read the paperwork carefully so you’re not caught out.
Avoid using them for taking out cash. The low interest is usually only for purchases, not cash advances.
How likely am I to be approved?
This will depend on your credit report and the lender’s individual criteria. You can find out your eligibility rating for various different credit products in the 'Offers' section of your ClearScore account.
If your credit score is too low at present to qualify you for a low interest card, don’t give up. You just have to play a slightly longer game – look at our 10 steps to a great credit score article for small changes you can make to improve your score.