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See moreBest low-interest credit cards 2025
Find out if a credit card that offers a consistently low interest rate for borrowing could be for you, and the best deals on the market
In this article
- What is a low-interest credit card?
- Best low-interest credit card deals
- Low-interest credit card provider reviews
- Who should use a low-interest credit card?
- Which low-interest credit card is right for me?
- Low-interest credit cards: pros and cons
- Low-interest credit cards FAQs
- How we analyse credit cards
What is a low-interest credit card?
A low-interest credit card is a deal that comes with a relatively low rate on purchases and/or balance transfers for as long as you have the card.
The average APR on a credit card is 35.6%, but the best low-interest deals charge as little as 8.9% APR, offering a cheaper way to borrow or shift debt whenever you need it.
The other benefit is that there is no need to switch cards because an introductory deal has expired.
This guide reveals the best low-rate credit card deals on the market, and our unique analysis can help you distinguish between the offers. Plus we explain what you need to know about low-interest deals and provide answers to common questions people have about this type of credit card.
Best low-interest credit card deals
We reveal the market-leading low-interest deals for purchases and balance transfers in the table.
We've also indicated if a brand is a Which? Recommended Provider, and whether the low-rate credit card has met the strict benchmarks of our analysts to be named a Which? Best Buy in this category. For more information on the terms we use in the table, skip to how we analyse credit card providers and deals.
Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular T&Cs of a credit card provider before committing to any financial products.
The Co-operative Bank 3 Year Fixed Rate Visa | 64% | 8.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 8.9% (variable), representative 8.9% APR (variable). Credit available subject to status. Terms apply. | 8.9% | 0% | 8.9% |
RECOMMENDED PROVIDER best buy Lloyds Bank Credit Card Visa | 74% | 10.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 10.9% (variable), representative 10.9% APR (variable). Credit available subject to status. Terms apply. | 10.94% | 5% | 10.94% |
RECOMMENDED PROVIDER best buy Tesco Bank Clubcard Credit Card Low APR Mastercard | 79% | 10.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 10.9% (variable), representative 10.9% APR (variable). Credit available subject to status. Terms apply. | 11.46% | 3.99% | 10.94% |
The NatWest Credit Card Mastercard | 74% | 12.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 12.9% (variable), representative 12.9% APR (variable). Credit available subject to status. Terms apply. | 12.9% | 0% | 12.9% |
The Royal Bank Credit Card Mastercard | 69% | 12.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 12.9% (variable), representative 12.9% APR (variable). Credit available subject to status. Terms apply. | 12.9% | 0% | 12.9% |
Table notes: table correct as of 1 May 2025. The average provider score is 72%. For more information on our research and the terms we use in the table skip to how we analyse credit card providers and deals.
- Find out more: best credit card deals
Low-interest credit card provider reviews
When searching for a low-interest credit card deal it can be difficult to differentiate between offers, so you might find our credit card company reviews handy in your research.
Which? has surveyed thousands of customers of 28 credit card brands, including top low-interest credit card providers, such as Lloyds Bank and Tesco Bank. You can take a look at how they stack up in our guide to the best credit card providers.
Only t he companies that combine great deals with top-notch customer satisfaction become Which? Recommended Providers.
Who should use a low-interest credit card?
With a low-interest card, you get a low rate for as long as you have the card. This means you get a consistently cheap deal and there's less pressure to pay off your balance within a set period.
It can be easier to budget, and you won't have to switch around regularly to avoid interest rate hikes as you do with 0% promotional offers, which have a time limit that can catch you out.
Credit card deals with 0% on balance transfers and 0% on purchases are cheaper than a low-interest credit card. But if you're not likely to pay off the total you spend before the end of the promotional period, you can get stung with interest.
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Which low-interest credit card is right for me?
With a credit card there are four main types of transactions you can do. You can:
- make a new purchase
- make a balance transfer from another card (usually for a one-off fee)
- make a money transfer to a current account (with a one-off fee)
- make a cash withdrawal.
Some low-interest credit card providers have a uniform rate for all types of transaction, but others vary the interest they charge.
Make sure you are getting a card that offers the cheapest deal for what you want to use it for.
Even if you're accepted for a credit card, you won't always end up with the advertised rate. Legally, providers only have to offer their headline rates to 51% of those that apply, so you could be part of the 49% that get a less attractive deal.
Lenders will assess your application based on your individual circumstances. Those with a better credit profile and score are more likely to be offered the best deal.
Low-interest credit cards: pros and cons
Still weighing up whether you should go for a low-interest credit card? Check out the pros and cons to help you decide.
Pros
- Peace of mind There are usually no annual fees on low-rate credit cards and, what's more, there'll be no unexpected rate jumps when a promotional period ends.
- Easier to budget Because you usually get a rate for as long as you have the card, it's easier to budget and you won't have to switch your cards regularly.
- No pressure With a low-interest card there's no pressure to pay off your balance within a set time.
Cons
- Not the cheapest way to borrow If you're looking to transfer a balance or make an expensive purchase, you could be better off with a 0% purchase or balance transfer deal, provided you can repay the debt within the promotional period.
- Low-rate might not be for everything The low-interest credit card you get might offer a good deal for purchases but might have a different rate for other types of transactions, such as balance transfers or cash withdrawals.
Low-interest credit cards FAQs
Have a query about low-rate credit cards? See if you can find the answer in our Q&A below:
How we analyse credit cards
Sam Wilson, credit card market analyst, says: 'At Which? we put credit card products and providers under the microscope to help you save time when shopping around for a new deal.
'We run a survey each year to gather the experiences of customers to help us find the best providers, and we keep a close eye on the credit card market to determine which deals are the best in their category.'
Here's some more information about our research and the terms we use in this guide.
Customer score
Our provider customer scores are based on an online survey of 4,014 members of the public, conducted in October 2024.
Provider scores are worked out using a combination of overall satisfaction and the likelihood of recommending the provider to a friend.
Sample sizes for customer score: Amazon (109), American Express (Amex) (217), Aqua (123), Asda Money (77), Bank of Scotland (76), Barclaycard (440), British Airways (99), Capital One (244), First Direct (112), Halifax (198), HSBC (197), John Lewis (82), Lloyds Bank (219), Marks and Spencer Bank (134), MBNA (125), Nationwide (168), NatWest (193), Ocean (42), Post Office (42), Royal Bank of Scotland (RBS) (149), Santander (165), Tesco Bank (207), The Co-operative Bank (76), TSB (99), Vanquis Bank (71), Virgin Atlantic (69), Virgin Money (including Clydesdale Bank and Yorkshire Bank) (96), Zopa (40).
Which? Recommended Providers
To become a Which? Recommended Provider, a lender must have:
- a provider score of at least 74%
- at least one top-10 card in one of the seven main categories available on the market
- a product analysis score that's average or above
- not have a representative APR of more than 35% on any of its mainstream cards at the time of the analysis.
Which? Best Buys
To become a Which? Best Buy, a credit card must have been one of the top five cards in its category and must also satisfy specific criteria for the type of card, such as the size of balance transfer fee or length of 0% period. A provider must have also achieved a provider score of over 70% in our latest credit card provider customer satisfaction survey.
We also review our analysis regularly, which means we will withdraw Best Buys if providers make adverse changes to APRs, 0% periods or fees.
- Find out more: Which? symbols, logos and ratings explained
Why should you trust Which? research?
We’re not influenced by third parties. We work entirely on behalf of you, the consumer – nobody else. See our statement of editorial independence for more.