Credit cards are some of the most common tools used by the general public to carry out any expenses– whether those are for everyday use or for emergencies. Credit cards can be used for them all.
But one major issue with credit cards is their interest rate. If one goes to calculate it from the perspective of a year, the annual percentage rate (APR) comes down to almost 22-23%, which can be a lot considering how much you use your credit card.
This is where low interest credit cards come in. With the help of these, your APR will only be around 5%, as opposed to the 23% that regular credit card companies share.
Now, you must be thinking, why not go for options like payday loans or even a personal loan? Well, with a credit card, you can use the money instantly and you have it with you at all times.
In the case of a loan, you might have to go through a long application process which might not always be suited for your circumstances. Besides, credit cards can also be used for your everyday expenses, and filling out a long-form online whenever you need money can be a bit exhausting after a while. The convenience of a credit card is unmatchable.
If you carry out your due research and choose a card that is best suitable for your needs, you might actually end up benefitting from this credit system at a very low cost. Here are some low-interest cards that you can consider using:
1. Santander Everyday Credit Card
This credit card is great for everyday expenses and has deals on shopping, movies, as well as fuel. You can use this for your daily use and enjoy the benefits that come with it. You can enjoy a balance transfer fee of 0% on this card for 18 months.
This comes without any additional fee or hidden costs. It is perfect for a homemaker to use for groceries or even any other home-related expenses that one might have.
You will also be charged a 0% interest on purchases for the first 26 months of using your card from the date of issuing it. With the help of this, you can borrow money for a short period without any additional interest and enjoy the benefits that come with the card as well.
The APR of this card is variable but it is usually around 19% which is lower than the average APR in the United Kingdom.
2. Halifax Low Fee Credit Card
Halifax is known for its low interest and consumer-friendly credit cards. By applying for this card, you can ensure that your low-interest rates will be maintained since you will get a deal better than most other consumers.
The balance transfer fee for this card is 0% for the first 23 months and the charges are 1.5%. You can also get a 0% charge on purchases for 9 months from the date of getting your card.
The APR for this card can go up to 20%.
3. Barclaycard Platinum Balance Transfer
At a 21% APR, this card offers its users a 0% charge on balance transfers and can be very useful in times of need, especially if you are in quick need of money.
Having a low charge on balance transfers is extremely important and a quality you should definitely look for in your credit card since it can be very helpful in the long term when you add up extra costs and end up saving on this one.
In terms of purchases, this card offers its users a 0% charge for 18 months from the date of getting the card to the customer.
4. Virgin Money All Round Credit Card
This card offers contactless payments to its customers for up to £45. By opting for this card, users can get their hands on several deals that come under the Virgin Group along with access to exclusive lounges and discounts on Virgin Experience Days.
They even offer users a 0% charge on balance transfer if the transfer is made within 60 days of acquiring the card. The APR for this card is 21%, but the deals that come along with it can save you plenty of money and help you dodge extra charges.
5. Tesco Bank Club Card Credit Card
The offers and deals on this card are subject to different people and their circumstances, like income status, spending needs, credit rate, etc. However, this card is still very popular among the average user due to the benefits it gives in regular usage.
It has fuel and shopping benefits along with access to exclusive lounges and other places all throughout the country. It offers a 0% charge on balance transfers if the transfer is made within 90 days of purchasing the card
The card has an APR of 20.9% and is fairly easy to get.
All the above cards are subject to a fair amount of conditions and eligibility criteria that need to be fulfilled. Some basic requirements include being at least 18 years of age, along with being a resident of the UK, having an income of at least £3000, and being able to show a good credit rate.
Out of all these, a good credit rate is the most important category and is one that will help you the most while applying. There are different ways in which you can increase this credit rate.
Some of them include paying your debts on time, not having any outstanding loans for a longer period of time, and basically managing your credit well. If you can do this, it is comparatively easier for you not only to acquire a card but to also maintain it, i.e., use it well and repay it too.
Even after all this, it is important to critically view the prospective cards and judge which is best for your needs. Compare the offers and see what you will be able to afford based on your income and spending needs. The APR of all the cards above are rough estimates and can be variable depending on current interest rates and the economic climate.