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Low Interest Credit Cards

Credit cards can be a cheap way to borrow money, but only if used correctly, that is, if you pay off your balance as often as possible and keep things like withdrawing cash and foreign usage to a minimum. If you're unhappy with your current deal and in search of a new card, it makes sense to find a low interest credit card.

The cards below are listed in order of those offering the most competitive standard or long term APR for purchases (not just introductory rates). A low interest credit card can save you money if you do not intend to pay off your balance each month. The lower the APR the cheaper the interest.

Credit Card Intro Rate For
Balance Transfers
Intro Rate For
Purchases
Representative APR
(variable)
Representative Example
Barclaycard Simplicity
Barclays Bank PLC
1 Churchill Place,
London,
E14 5HP
7.9%
(Fee: no fee)
7.9% 7.9% Representative Example
7.9% representative APR variable
7.9% p.a.variable on purchase
£1,200 credit limit
Suitable for applicants with a good credit rating
Capital One Click
Capital One,
Trent House,
Station Street,
Nottingham, NG2 3HX
9.9%
(Fee: no fee)
9.9% 9.9% Representative Example
9.9% APR representative variable
9.94% p.a. variable on purchases
£1,200 credit limit
If you love shopping online, the Click Card is designed for you
Suitable for applicants with a very good credit rating and an annual income of over £20,000
Rewards: This card gives you access to exclusive brand discounts when you use it to shop online. New deals and retailers are added every quarter which are valid for a 3 month period
Lloyds TSB Advance
4.9% for 12 months
(Fee: 3%)
0% for 6 months 11.9% Representative Example
11.9% representative APR variable
11.95% p.a. variable on purchase
£1,200 credit limit
Virgin All Round
0% for 16 months
(Fee: 1.99% - min £3)
0% for 6 months 15.8% Representative Example
15.8% representative APR variable
15.8% p.a.variable on purchase
£1,200 credit limit
Virgin
0% for 20 months
(Fee: 2.99%)
0% for 3 months 16.8% Representative Example
16.8% representative APR variable
16.8% p.a.variable on purchase
£1,200 credit limit
Rewards: Cardholders can take advantage of exclusive instant savings across the Virgin group with discounted holidays, wine, gym membership, experience days and more
Play.com
MBNA Europe Bank Limited
Stansfield House,
Chester Business Park,
Wrexham Road,
Chester, CH4 9QQ
0% for 6 months
(Fee: 1.5% - min £3)
0% for 9 months 16.9% Representative Example
16.9% APR representative variable
16.9% p.a.variable on purchase
£1,200 credit limit
Receive 1,500 bonus Play Points if you spend £150 on your card within the first 90 days
Suitable for homeowners with a good credit history, aged at least 23 and in full time employment
Rewards: Collect Play Points and redeem them for Play.com gift vouchers. Earn 2 points for every £1 you spend at Play.com and 1 point for every £1 you spend elsewhere
Halifax
0% for 20 months
(Fee: 3% - min £3)
0% for 3 months 16.9% Representative Example
16.9% representative APR variable
16.94% p.a. variable on purchase
£1,200 example credit limit
You must have an annual income of £20,000 or more to apply
Bank of Scotland Plus
0% for 18 months
(Fee: 3% - min £3)
0% for 3 months 16.9% Representative Example
16.9% representative APR variable
16.94% p.a. variable on purchase
£1,200 credit limit
Halifax
0% for 17 months
(Fee: 3% - min £3)
0% for 3 months 16.9% Representative Example
16.9% representative APR variable
16.94% p.a. variable on purchase
£1,200 credit limit
AA Credit Card
0% for 12 months
(Fee: 3% - min £3)
0% for 10 months 16.9% Representative Example
16.9% representative APR variable
16.9% p.a.variable on purchase
£1,200 credit limit
Collect AA Rewards Points and exchange them for a range of motoring products and services
Rewards: Earn AA Reward Points every time you spend. Collect 1 AA point for every £1 you spend with double points on fuel and motoring purchases. Use your points to purchase from a range of motoring products and services
Barclaycard Platinum
Barclays Bank PLC
1 Churchill Place,
London,
E14 5HP
0% for 22 months
(Fee: 3.2% )
0% for 3 months 17.5% Representative Example
17.5% APR representative variable
17.5% p.a. variable on purchases
£1,200 assumed credit limit
Refund offer which reduces the handling fee to equivalent of 2.9% for everyone
Bank of Scotland Advantage
0% for 13 months
(Fee: 3% - min £3)
0% for 13 months 17.9% Representative Example
17.9% representative APR variable
17.95% p.a. variable on purchase
£1,200 credit limit
To qualify you will need to have a Bank of Scotland Current Account which you pay £1,000 or more into each month or hold an Ultimate Reward Current Account.
Barclaycard Platinum Balance Transfer
0% for 24 months
(Fee: 3.2%)
0% for 3 months 17.9% Representative Example
17.9% representative APR variable
17.9% p.a.variable on purchase
£1,200 credit limit
Freeze your interest at 0% until 2014!
NatWest YourPoints World
0% for 13 months
(Fee: 2.9% - min £5)
0% for 13 months 17.9% Representative Example
Representative 17.9% APR (variable) based on an assumed credit limit of £1,200. Standard interest rate for purchases: 17.95% p.a. (variable).
Introductory 2,500 bonus points to all new customers
Rewards: The card gives you one reward point for every £1 you spend. Bonus points are also gifted on a yearly basis thereafter. Points can be redeemed against flights, holidays, shopping vouchers and experiences and at retail outlets including Marks & Spencer, Boots, easyJet, Harvey Nichols and Amazon
AA Balance Transfer
0% for 16 months
(Fee: 2.9%)
0% for 3 months 17.9% Representative Example
17.9% representative APR variable
17.9% p.a.variable on purchase
£1,200 credit limit
Earn AA Rewards Points on all purchases plus double points on fuel and motoring spend
Rewards: Earn AA Reward Points every time you spend. Collect 1 AA point for every £1 you spend with double points on fuel and motoring purchases. Use your points to purchase from a range of motoring products and services
Halifax Balance Transfer
0% for 22 months on balance transfers up to £3,000
(Fee: 3.5% - min £3.50)
0% for 3 months 17.9% Representative Example
17.9% APR representative variable
17.95% p.a. variable on purchases
£1,200 assumed credit limit
You must have an annual income of £20,000 or more to apply
HSBC Bank
0% for 23 months
(Fee: 3.3% fee - min £5)
0% for 3 months 17.9% Representative Example
17.9% representative APR variable
17.9% p.a.variable on purchase
£1,200 credit limit
This product is only available to existing HSBC customers
Lloyds TSB Platinum
0% for 15 months
(Fee: 3% )
0% for 3 months 17.9% Representative Example
17.9% representative APR variable
17.95% p.a. variable on purchase
£1,200 credit limit
Halifax All In One
0% for 15 months
(Fee: 3% - min £3)
0% for 15 months 17.9% Representative Example
17.9% representative APR variable
17.95% p.a. variable on purchase
£1,200 credit limit
The APR and length of the promotional offer are dependent on your personal circumstances
Bank of Scotland All In One
0% for 12 months
(Fee: 3% - min £3)
0% for 12 months 17.9% Representative Example
17.9% representative APR variable
17.95% p.a. variable on purchase
£1,200 credit limit
NatWest Platinum
0% for 20 months
(Fee: 2.9% - min £5)
0% for 6 months 17.9% Representative Example
Representative 17.9% APR (variable) based on an assumed credit limit of £1,200. Standard interest rate for purchases: 17.95% p.a. (variable)
In the Representative Example above we have used an assumed credit limit of £1,200. The actual credit limit assigned to individual accounts will vary depending on our credit assessment of you.
Pay 0% on balance transfers for 20 months (2.9% fee, min £5).
This offer is only available online.
Over 18s only.
Minimum income to apply: £10k p.a.
1% off the APR for Advantage Gold customers
RBS Platinum
The Royal Bank of Scotland plc.
36 St Andrew Square,
Edinburgh,
EN2 2YB
0% for 20 months
(Fee: 2.9% - min £5)
0% for 6 months 17.9% Representative Example
Representative 17.9% APR (variable) based on an assumed credit limit of £1,200. Standard interest rate for purchases: 17.95% p.a. (variable)
In the Representative Example above we have used an assumed credit limit of £1,200. The actual credit limit assigned to individual accounts will vary depending on our credit assessment of you.
Pay 0% on balance transfers for 20 months (2.9% fee, min £5).
This offer is only available online.
Over 18s only.
Minimum income to apply: £10k p.a.
1% off the APR for Royalties Gold customers
RBS YourPoints World
0% for 13 months
(Fee: 2.9% - min £5)
0% for 13 months 17.9% Representative Example
Representative 17.9% APR (variable) based on an assumed credit limit of £1,200. Standard interest rate for purchases: 17.95% p.a. (variable).
Introductory 2,500 bonus points to all new customers
Rewards: The card gives you one reward point for every £1 you spend. Bonus points are also gifted on a yearly basis thereafter. Points can be redeemed against flights, holidays, shopping vouchers and experiences and at retail outlets including Marks & Spencer, Boots, easyJet, Harvey Nichols and Amazon
American Express Platinum Cashback
- 14.0% 18.5% Representative Example
Representative 18.5% APR variable. Based on annual fee of £25 and assumed credit limit of £1200. Interest rate for purchases: 14.0% p.a. variable
Earn 5% cashback for the first three months up to a maximum of £100 plus 2.5% cashback in the anniversary month when you spend £10,000 a year
£25 annual fee
Cashback: Up to 5%
Virgin Retail
0% for 13 months
(Fee: 2.89%)
0% for 13 months 18.9% Representative Example
18.9% representative APR variable
18.9% p.a.variable on purchase
£1,200 credit limit
Capital One World MasterCard
Capital One,
Trent House,
Station Street,
Nottingham, NG2 3HX
19.9%
(Fee: no fee)
19.9% 19.9% Representative Example
19.9% APR representative variable
19.94% p.a. variable on purchases
£1,200 credit limit
5% cashback on all purchases for the first 3 months
Cashback: Earn 5% cashback on purchases for the first 3 months (max £100) and up to 1.25% unlimited cashback thereafter
British Airways American Express
- 19.9% 19.9% Representative Example
19.9% representative APR variable
19.9% p.a.variable on purchase
£1,200 credit limit
Get 9,000 bonus Avios when you spend £1,000 on your card within the first 3 months
Rewards: Earn 1 Avios for virtually every £1 you spend
Barclaycard Initial
Barclays Bank PLC
1 Churchill Place,
London,
E14 5HP
- 29.9% 29.9% Representative Example
29.9% representative APR variable
29.9% p.a.variable on purchase
£1,200 credit limit
Suitable for people looking to strengthen or rebuild their credit rating
Capital One Classic
Capital One,
Trent House,
Station Street,
Nottingham, NG2 3HX
34.9%
(Fee: 3%)
34.9% 34.9% Representative Example
34.9% APR representative variable
34.94% p.a.variable on purchase
£1,200 credit limit
Great for people who want to build or rebuild their credit rating
aqua
- 35.9% 35.9% Representative Example
Your interest rate for purchases is 35.95% p.a with a representative 35.9% APR if you borrowed £1,200 and repaid it over 12 months
Vanquis Visa
- 39.9% 39.9% Representative Example
Purchase annual interest rate 39.94% (variable)
Amount of credit £1,000
Representative 39.9% APR (variable)


Rates on the rise

In February 2010 a report from Moneyfacts, the financial information provider, revealed credit card interest rates were at their highest for 12 years despite interest rates being at a record low.

The average annual percentage rate (APR) charged for credit card debt had soared from a low of 14.8% in February 2006 when the base rate was 4.5%, to a steep 18.8% compared with a Bank of England base rate at just 0.5%.

This means that credit card borrowers with a debt of £5,000 on their card - who make only the minimum repayment each month - will now repay an additional £2,289 over the life of the debt compared with what they would have paid in 2006.

It has never been more important to check the interest rate you're paying and, in many cases, to switch to a low interest credit card.

Martyn Saville from consumer body Which?, commented: 'These new figures are staggering at a time when both base rate and interest rates for savers remain historically low. Credit card users in the UK are being punished for the banks' poor lending decisions in the past and for lenders' need to rebuild their own balance sheets and profit margins.

Credit card rates have been soaring, even for good, loyal customers. According to the UK Cards Association, more than 6.4 million credit card accounts were "re-priced upwards" in 2009.

Consumer champion Martin Lewis, says: "These massive increases are what we call 'rate-jacking' – as the companies involved are hijacking accounts and potentially blighting people's ability to manage their debts."

The increases are a consequence of more providers using 'rate-for-risk' which essentially is the card provider assigning an interest rate to a borrower based on their credit record and repayment history. Card companies have a range of rates and the rate offered will depend on the applicants credit score; those that appear to be a higher risk, or are more likely to default on their debts, will be charged a higher APR. Research from Defaqto shows that two thirds of applicants will get the best 'headline' rate, but up to one third will be offered a higher rate.

If you are a good credit risk, then there are still decent low interest credit card offers available. Loyalty to you current provider isn't necessarily the most prudent course of action.

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