Low interest rate credit cards

If you want a credit card with a low interest rate, uSwitch.com can help you find one from amongst the hundreds on the market. Our impartial credit card comparison service highlights the typical interest rates for each card, plus any interest free introductory period.

Interest rates vary for each card, which is a compelling reason to compare rates before you commit to one. In March 2005, the average interest rate was 16% for normal purchases, according to Datamonitor, an information company that provides industry analysis for financial services.

There are different rates depending on how the debt is made. For example, you are likely to pay more interest on cash withdrawals. Credit cards also offer interest free periods on purchases. So if you pay your debt off within the time period, you will not pay interest.

If you use your card to shop, then you are charged an Annual Percentage Rate (APR). Credit card companies must, by law, provide this rate in their marketing.

The APR is calculated in a consistent way across all financial providers and allows you to make a fair comparison. So, you know that if the APR is low than you are getting a low interest rate credit card.

What is the APR? It's a bit technical. By definition, it's the annual cost of credit paid to the provider, expressed as a simple percentage. It includes the actual interest on the borrowed amount and any other additional charges that the lender makes, excluding penalty charges.

If you want to transfer an existing credit card balance to a new credit card, you are charged a different annual rate to the APR. It is normally lower than the APR, but it excludes any other fees.

How will you use your card? If you pay your outstanding balance every month then you'll never pay any interest, so you should opt for a card with other offers you can take advantage of, like free travel insurance or cashback.