Balance transfer card
If you're paying a high interest rate on an existing card, a balance transfer credit card might help you save money by moving the balance to a lower interest card. There is often a transfer fee for doing this.
Low interest credit cards
Enjoy our best credit cards with a low APR
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1Accurate as of December 2025
What is a low rate credit card?
A low-interest, or low-APR, credit card offers consistently low interest rates to help keep your monthly credit card repayments affordable. This means you might not need to switch credit card providers as often.
While some cards will offer you a 0% interest or low rate for an introductory period, with a low-rate card you’ll have a cheaper rate permanently.
What’s the difference between low interest and interest free?
An interest-free credit card is when for a set time, usually an introductory period, you won’t have to pay any interest when you pay off less than the full amount. On the other hand, a low interest card offers you a low rate permanently, while interest-free means you won’t have to pay any interest for a fixed timeframe.
How do low interest credit cards work?
Apply for a credit card: To get one, you typically need a good or excellent credit score
Make purchases as usual: You can use the card like any other—online, in stores, or for bills—up to your credit limit
Pay the minimum balance each month: Even if you're paying 0% interest for an introductory period, you still need to keep up with the minimum payments to avoid fees
What can I use a low interest credit card for?
You can use a low interest card for the following:
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Large purchases you can’t pay off right away
Such as appliances or furniture
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Balance transfers
Move high-interest debt from another card to this one
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Emergency expenses
Including medical bills, car breakdowns, or urgent travel
Which is the best low interest credit card for my circumstances?
There are two main types of low-interest credit card:
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Purchase credit cards
Purchase credit cards with low-interest rates are ideal for new purchases, helping you pay interest at a reduced rate compared to standard cards
How much do low-rate credit cards cost?
At the time of writing, the average rate (APR) on a credit card is about 20%. But if you’re lucky enough to qualify for a low-rate card, you could secure a rate as low 5%-6%.
What does that really mean for how much you’ll actually pay, though? Take a look at the table opposite for some working examples…
NB: Our working examples are intended as a guide and make the assumption that you will not spend more on your card and that no additional fees are applied. We have also applied the same interest rate to every balance.
Annual percentage rate (APR) | Balance on card | Fixed monthly repayment | Total to repay | Time to clear balance |
|---|---|---|---|---|
20% | £5,000 | £300 pm | £5,817 | 1yr 8 months |
5% | £5,000 | £300 pm | £5,188 | 1yr 6 months |
How to choose the best low APR credit card?
1) Look for low interest rates: Aim for the lowest possible rate (APR) so you pay less interest on your balance.
2) Find an interest-free period: See if there’s an introductory 0% interest period and how long it lasts.
3) Check for fees: Find out if there’s an annual credit card fee or any other charges.
How do current interest rates affect the cost of borrowing?
As of December 2025, the base rate stands at 4%, after the Bank of England voted for 0.25% reduction on the 7th of August, the third of the year.
While credit card interest rates aren't directly tied to the base rate, they often track it to some extent. A lower base rate can encourage lenders to reduce the interest rates they charge on credit cards, making borrowing more affordable.
However, it is also worth noting that interest rates, and therefore borrowing costs, are still high compared to recent times, with the base rate being as low as 0.1% just 3 years ago.
What are the pros and cons of low APR credit cards?
A low-interest-rate credit card has lots of advantages, but there could be some downsides. Here are the things to consider:
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Pros
Low interest rate means you’ll be charged less if you don’t repay the balance in full
Can help spread the cost of a large purchase
Could sometimes include introductory periods of 0% interest on purchases
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Cons
You could lose the low interest rate if you miss a payment
The low interest rate usually only applies to purchases – not cash withdrawals
Could damage your credit score if you miss repayments
Know where you stand with a pre-approved credit card
Applying for a credit card can sometimes feel daunting because it’s not always clear what deal you’ll get, or if you’ll be accepted. But when you’re pre-approved for a credit card you can relax because you know the deal you see is the deal you’ll get. You’ll know where you stand, with the facts at your fingertips to help you make the right choice for you.
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Apply with confidence
When you’re pre-approved, the interest rate, interest-free period and fee (if there is one) are all confirmed – the only thing not guaranteed is your credit limit.
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Tailored to you
You’ll see your unique, personalised chance of being approved for all credit cards, so you can easily compare all your options at a glance.
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You’re in safe hands
Knowing all this upfront puts you in the driving seat. You’re less likely to be turned down when you apply, so your credit score is protected.
What should I consider before getting a low interest card?
Here are some questions to ask before committing to a low interest card:
What credit limit will I get on a low interest credit card?
The average credit card limit in the UK is around £3,000 to £4,000, but the credit limit on a low interest credit card will depend on your individual circumstances, such as credit score, income, existing debts, and borrowing history.
Those with a lower income or poor credit score will typically receive a lower credit limit than those high higher incomes and a good credit score.
Do low rate credit cards come with low-rate cash withdrawals?
No, low interest rate credit cards don't necessarily come with low-rate cash withdrawals. While some cards might offer the same low interest rate on purchases, balance transfers, and cash withdrawals, others don't.
It's important to check the specific terms and conditions of the credit card, as cash withdrawals are often subject to higher interest rates and fees, and interest is typically charged from the date of the withdrawal, not a grace period like purchases.
Can I consolidate debts onto a low APR credit card?
Yes, you can consolidate debts onto a credit card with a low APR, especially if you're looking to transfer balances to a 0% interest card for a limited time. This can simplify payments and potentially save you on interest.
Will I get the low APR that is advertised?
Lenders can only advertise an APR as ‘representative’ or ‘typical’ if 51% of their customers get that rate or lower. This means you are not guaranteed to get the low APR, but you will have more chance if you have a high credit score.
Am i eligible for a low interest credit card?
To be applicable for a low interest card in the UK, you must:
Be a UK resident
Aged 18 or over
Provide proof of regular income
Your credit score will also have an impact on your eligibility.
Can I get a low interest credit card with bad credit?
While you may be able to get a credit card even with a low credit score, you are likely to find that compared to customers with good credit ratings...
Interest rates will be higher
Credit limits will be lower
Interest-free periods will be shorter or unavailable
You may find that a credit-builder card best suits your needs. While these offer higher interest rates and lower credit limits initially, your credit score should start to climb over time if you keep up with repayments.
Compare low interest rate credit cards with MoneySuperMarket
If you think a low-rate credit card is right for you, use our eligibility checker to see what cards are available – and which ones you’re most likely to be approved for.
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Tell us about yourself
We'll ask a few simple questions about you and your finances and what you’re looking for from a credit card.
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We search the market
We'll compare credit card offers from across the UK market, and show you the cards we think will suit you best.
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Choose the card you want
We’ll show you low rate credit cards, which you can sort by APR, fees, other features and your chances of being approved.
Our expert says…
Low-interest cards give you the peace of mind of more affordable repayments on anything you buy. What's more, you don’t need to worry about the rate constantly changing or becoming more expensive. As long as you keep up with repayments, and follow all the other rules, the rate should always remain the same. If you're really keen to keep your costs down, you might also want to consider a 0% card – just be aware that the 0% period won’t last forever and when it ends you’ll be charged interest on the outstanding balance.
Kara Gammell Personal Finance & Insurance Expert
What are the alternatives to a low interest credit card?
If you're not sure about a low interest credit card, there are some alternatives:
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Loans for bad credit
There are lenders who specialise in offering loans to people with poor credit history, but your options may be more limited and the interest rates are often higher.
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Credit-builder cards
Credit-builder cards are designed to allow you to improve your credit score and offer lower credit limits and a higher chance of acceptance.
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Borrowing from friends or family
Can make borrowing more affordable, but can also strain relationships.
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Find everything you need to know about credit cards
What is the difference between a low interest and no interest rate credit card?
A low interest rate credit card charges you interest if you don’t clear your balance in full every month whereas a no interest rate credit card allows you to build up a balance without incurring interest.
A no-interest, or 0% interest, card is likely only to be offered for an introductory period to entice customers to apply for the card. There are also likely to be terms attached to keep the 0% rate, such as making sure you still meet the minimum required payment each month.
What is the eligibility criteria for a low APR credit card?
Customers with a higher credit score are more likely to be eligible for a low APR card. This is because they have proved they can borrow responsibly in the past. It’s difficult to be precise because each credit card provider will have its own criteria for deciding who is eligible for a low-rate credit card.
Will I get the low APR that is advertised?
Lenders can only advertise an APR as ‘representative’ or ‘typical’ if 51% of their customers get that rate or lower. This means you are not guaranteed to get the low APR, but you will have more chance if you have a high credit score.
What are my alternatives to a credit card for low cost borrowing?
If you need to borrow there could be other options available:
An agreed overdraft. Make sure the overdraft is authorised by your bank and check the interest rate as it could be expensive if you are in the red for a long time.
Loan. A personal loan or secured loan can give you access to funds, the advantage being you can usually borrow more than on a credit card and the repayments are fixed and structured.
What should I consider before applying for a low interest card?
You should think about your credit score. You’re more likely to be accepted for a low interest credit card with a good credit rating. The major draw of low interest cards is their interest rate, but it’s still important to make sure to read the small print. You might not benefit from the attractive low rate if you miss a payment, for example.
What is considered a low APR on a credit card?
A low APR on a credit card is 10% and under.
Will I get a higher credit limit on a low rate card?
The credit limit you get will mainly depend on your credit report. Your credit limit could be increased by using your credit card wisely, e.g., keeping up with payments.
How can low-interest credit cards help me save money on my existing debt?
Low-interest credit cards can help you save money by reducing the amount you pay in interest on existing debt. Balance transfer cards allow you to move high-interest debt to a new card with a lower interest rate, potentially lowering monthly payments. However, be aware of the balance transfer fee, which is usually a percentage of the transferred amount.
Purchase credit cards with low-interest rates are ideal for new purchases, helping you pay interest at a reduced rate compared to standard cards. Using a purchase credit card strategically can help you manage debt more effectively and reduce the overall cost of borrowing, freeing up funds for savings and other financial goals.
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Reviewed on 10 Dec 2025 by
