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Always make sure you can afford repayments before applying for any credit card.

The AA Low Rate Credit Card is no longer available to new applicants. This page preserves a summary of the card for historical reference, followed by information on low rate credit cards currently available in the UK.

About the card

The AA Low Rate Credit Card was a no-annual-fee card designed for those who may occasionally need to carry a balance from month to month. Its defining feature was a consistently low purchase rate of 6.5% APR (well below the market average at the time) which applied to purchases, cash withdrawals and balance transfers on an ongoing basis rather than for a limited promotional period.

The card offered three possible rates depending on individual credit assessment: 6.5%, 10.4% or 14.9% APR. At least 51% of successful applicants received the representative 6.5% rate. Those with weaker credit histories were more likely to be offered the higher rates.

Low rate vs 0% promotional cards

Note: a 0% purchase or balance transfer card can be cheaper than a low rate card in the short term, but the 0% rate is temporary and can end abruptly if a payment is missed or the credit limit is exceeded.

A low rate card's advantage is stability: the rate remains consistent over the long term, regardless of payment behaviour, making it easier to budget and less risky for those who may occasionally miss a payment deadline.

Other features

The card charged a 2.99% foreign transaction fee on non-sterling purchases and a 2.99% cash withdrawal fee (minimum £3). Balance transfers attracted a 2.99% transfer fee. The minimum credit limit was £1,000. A soft-search eligibility checker was available before applying.

Low rate credit cards currently available in the UK

The low rate credit card market has contracted since the AA card was available, and rates across the category have generally risen. The AA card's 6.5% APR would be significantly below anything currently available in the market. The options below are among the lower-rate cards available as of July 2026.

Always make sure you can afford repayments before applying for any credit card.

Co-operative Bank Credit Card

The Co-operative Bank offers a representative APR of 8.9% fixed on purchases and balance transfers for the first three years, with no balance transfer fee. After three years the rate reverts to 18.2% variable. This makes it potentially the lowest-cost option over a fixed period, though the rate increase after year three is significant and worth factoring into any longer-term borrowing plans. No annual fee. A 2.75% foreign transaction fee applies.

Representative example: Based on an assumed credit limit of £1,200 at a purchase rate of 8.9% p.a. (fixed for first three years, then 18.2% variable), the representative APR is 8.9% fixed for first three years.

Lloyds Bank and Halifax low rate cards

Both Lloyds Bank and Halifax offer low rate cards with a representative APR of 10.9% variable on purchases and balance transfers, with no annual fee. Lloyds offers fee-free balance transfers within the first 90 days; a 5% fee applies thereafter. A 2.95% foreign transaction fee applies to both.

Representative example: Based on an assumed credit limit of £1,200 at a purchase rate of 10.9% p.a. (variable) with no annual fee, the representative APR is 10.9% variable.

Tesco Bank Low APR Credit Card

The Tesco Bank Low APR Credit Card carries a representative APR of 12.9% variable and earns Clubcard points on eligible spending: 1 point per £4 at Tesco and on Tesco fuel, and 1 point per £8 elsewhere. A 3.99% balance transfer fee applies. No annual fee.

Representative example: Based on an assumed credit limit of £1,200 at a purchase rate of 12.9% p.a. (variable) with no annual fee, the representative APR is 12.9% variable.

Lloyds Ultra Credit Card

The Lloyds Ultra card carries a representative APR of 12.9% variable with no annual fee, no foreign transaction fees, and 1% cashback on spending in the first year (reducing to 0.25% thereafter). For those who want a low rate alongside overseas use and a cashback element, this is the only current option that combines all three.

Representative example: Based on an assumed credit limit of £1,200 at a purchase rate of 12.9% p.a. (variable) with no annual fee, the representative APR is 12.9% variable.

Card details correct as of July 2026. Terms, APRs and availability are subject to change — always verify current details directly with each provider before applying. This article is for general information only and does not constitute financial advice. ClearScore is a credit broker, not a lender.