What is a low rate credit card?

Find out everything you need to know about low rate credit cards and whether they could be the right type of card for you.

What is a low rate credit card?

Low rate credit cards, also referred to as low APR credit cards, give you a low interest rate on purchases and balance transfers for the duration of the card’s lifetime. Low rate cards typically have a rate of 10% or less.

What are the benefits of a low rate credit card?

When taking out a low rate credit card, it’s important to check whether the perks of the card match with your borrowing needs. Here’s our round up of the main benefits usually offered on a low rate credit card:

Sticking with one lender for longer: As your card has a long term low interest rate you don’t need to worry about frequently changing lenders to lock in a good deal.

Affordable monthly repayments: As your interest rate will be consistently low, the interest accrued on your balance should be manageable. It’s a good idea to pay your balance off in full each month so you avoid interest payments altogether.

Rewards on spending: Some providers offer rewards on spending, such as loyalty points, vouchers and cashback.

What to watch out for

Before you apply for a low rate card, make sure you consider these potential pitfalls:

Annual fees: If your provider charges an annual fee, this will add to your monthly repayments.

Value of rewards: Make sure the rewards, if any, are actually beneficial to you. Dedicated rewards cards may offer better alternatives.

Missed payments: If you miss your monthly repayment, you risk losing your low rate. Your credit score could also be negatively affected.

How to get a low rate credit card that’s right for you

The most competitive cards are available for those with a good credit score. Credit Monitor lets you check your score for free, plus you’ll get free, personalised tips to help you improve your score. A better score means you’re more likely to have access to a wider range of credit card deals, so you’ll have more options to choose from.

We’ll also keep an eye on your credit file and let you know about any activity that could be suspicious, so you can act on it quickly and make sure your score isn’t negatively impacted.

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