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THE cheapest low interest rate credit card currently available is with Barclaycard – offering a standard APR of just 8.8% on their Platinum 'Low Rate' credit card.
Both the Co-operative Bank and Capital One offer rates of just 9.9% APR on their platinum credit cards.
With the average APR in the market currently set around 15.9% APR - 16.9% APR – credit cards offering low interest rates below 10% are a very good deal.
Lower than low
Of course, the lowest interest rate credit card available is one offering 0% on purchases.
While 0% rates only last for an introductory period, 0% purchase credit card deals are now available with periods lasting up to 10 months.
This includes Capital One's Platinum credit card with 0% for up to 10 months, Barclaycard's Platinum with 0% for 10 months, Halifax's All in One credit card with 0% for 10 months and Capital One's MasterCard credit card with 0% for up to 10 months as well.
0% purchase deals, unlike balance transfers, are not subject to any particular fees – so there really is nothing else to pay on new purchases during the 0% period.
Why you should decide which is the best lowest interest rate credit card for you
While any deal offering a very low interest rate may seem like the best proposition to saving money – it's important to choose the right deal as what card usage the low interest rate will apply to varies.
For example, while it may seem like any credit card that offers 0% interest is going to be ideal for anyone, this is not necessarily the case. If you can only make the minimum repayments each month then you could end up paying over the odds, as any remaining balance at the end of the 0% period will start to be charged at standard interest rates, which can be around 15.9% - 19.9% per annum.
For anyone looking to just make the minimum monthly repayments it may be best to seek out the lowest standard rate credit card.
Alternatively, if you already have an outstanding balance and need to spread the repayments over a period a fair bit longer than 15 months (the longest period available at 0%) then it may be worthwhile choosing a balance transfer credit card that offers a low rate for the life of balance – however long it takes to repay it.
It is important to compare a range of different credit cards from different providers and work out what sort of card will best meet your needs based on your spending and repayment habits, as well as on your personal circumstances.
Remember, the lowest interest rate credit card is not going to be best suited to everyone so you need to find a card that will cater for your own specific needs, be it a 0% purchase credit card, 0% balance transfer credit card – or for longer repayments a low interest rate credit card for purchases or a life of balance transfer credit card.
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