The benefits of low rate credit cards

Low rate credit cards are the ideal type of credit card for any situation; whilst many credit cards can offer attractive 0% rates to tempt you over to them, following this initial period you can be shocked to discover that the APR is significantly higher. Low interest rate credit cards are convenient, straight forward and reliable. In this guide we look at the benefits of a low rate credit card, and which ones are the best on the market.

The benefits of a low rate credit card

Low rate credit cards ensure that the consumer knows where they are with the interest rate they pay. This will come as welcome news to those that have taken out a credit card, only to find that 6 months down the road their 0% interest rate has shot up to over 30% APR representative.

Credit cards' usual APR is 23% but you can find some really good deals at 5.9% APR. This rate is usually for life and makes your credit card worth of having. With promotional 0% balance transfer fees you may forget to pay off any outstanding amounts and they may cripple to a huge sum of money. 

The best low rate credit cards on the market

The following cards are the best low rate credit cards that are available on the market today:

Sainsbury's - Nectar Low Rate Credit Card

Representative APR for the Sainsbury's - Nectar Low Rate Credit Card is 7.8% (however this may be subject to change, dependent upon your credit status). Foreign purchase fees are charged at a 2.75% fee for purchases that are made in countries in the EU, as well as worldwide.

This particular low rate credit card benefits from double nectar points on everything your purchase at Sainsbury’s (please note, terms and conditions apply, check the fine print); you additionally collect Nectar points elsewhere, albeit at a lower rate of one nectar point for every £5.

Tesco Bank - Clubcard Credit Card with a Low APR

The Tesco Bank - Clubcard Credit Card with a Low APR card also benefits from a 7.8% representative APR, however one defining difference is that this card has a 0% balance transfer rate for 3 months, even more impressive is that any transfers are free of charge. Again, foreign and EU country purchases are charged at an additional 2.75%.

With this card you collect Clubcard points for all your purchases, gaining one point per £4 spent. Once more however, the APR you receive is subject to your credit status, so may be slightly more than the stated 7.8%.

Please also note that if you currently hold a Tesco Credit card then you will be unable to apply for this credit card.

You may want to read about: No Credit Check Credit Cards

Low rate credit cards provide convenience and the ability for people to purchase goods that may even be essential; to this end they can form a vital part of everyday life, and if used correctly (and not abused) they can allow for purchases that are charged at 0% interest rate for a limited period.