1.The Co-operative Bank 3 Year Fixed Rate Visa
The Co-operative Bank
- No rewards breakdown available
No specific upfront 'welcome bonus' cash incentive, but provides long-term interest savings.
No direct rewards like cashback on this specific card.
8.9% Variable APR
This card stands out as a solid choice for those looking to manage their monthly repayments with a fixed interest rate for three years, making it ideal for budgeting without the worry of fluctuating rates.
Pros:
- Fixed rate on purchases and balance transfers for 3 years
- No annual fee
Cons:
- No direct rewards
- Reverts to variable rates after 3 years
- 1%Clubcard points on spending in Tesco
- 0.25%Clubcard points on spending outside Tesco
Focus on 0% interest periods rather than a direct welcome bonus.
Collect Clubcard points on spending both in and out of Tesco.
12.9% Variable APR
What sets this card apart is its balance between low ongoing costs and valuable rewards, making it a good option for consistent Clubcard shoppers.
Pros:
- Low ongoing interest rate
- Collect Clubcard points
Cons:
- No 0% interest on purchases
- Higher ongoing APR than some competitors
3.Lloyds Bank Ultra Credit Card Visa
Lloyds Bank
- 1%Cashback on all purchases for the first year
- 0.25%Cashback on all purchases thereafter
1% cashback on all purchases for the first 12 months.
1% cashback on all purchases for the first year.
12.9% Variable APR
The standout feature here is the unlimited cashback for the first year, making it an attractive option for those who want to earn rewards on their everyday spending.
Pros:
- Unlimited cashback
- No foreign exchange fees
Cons:
- Cashback drops after the first year
- Interest rates can change
4.NatWest Credit Card Mastercard
NatWest
- 1%Back at supermarkets
- 0.5%On other spending
Focus on ongoing rewards rather than large upfront cash bonuses.
1% back at supermarkets, 0.5% elsewhere.
12.9% Variable APR
This card shines for its straightforward rewards structure, particularly for those who frequently shop at supermarkets, making it a practical choice for everyday use.
Pros:
- No foreign transaction fees
- No annual fee
Cons:
- Limited rewards on non-supermarket spending
- Higher APR for some cards
- No rewards breakdown available
Focus on 0% interest on purchases rather than a cash bonus.
No traditional rewards like points or cashback.
12.9% Variable APR
This card prioritizes low costs over rewards, making it a sensible choice for those looking to manage their spending without incurring interest.
Pros:
- 0% interest on purchases for 3 months
- Low ongoing APR
Cons:
- No rewards structure
- Limited benefits compared to other cards
6.Lloyds Bank Platinum 0% Purchase & Balance Transfer
Lloyds Bank
- No rewards breakdown available
0% interest on purchases and balance transfers for a limited time.
No direct rewards structure.
24.94% Variable APR
This card is designed to help manage debt or spread the cost of spending, making it a practical choice for those looking for interest-free periods.
Pros:
- Long 0% interest periods
- No annual fee
Cons:
- Reverts to high APR after promotional period
- Balance transfer fees apply
7.M&S Bank Credit Card Purchase Plus
M&S Bank
- 1%Points for spending in M&S
- 0.2%Points for spending elsewhere
0% interest on purchases for up to 25 months.
1 point for every £1 spent in M&S and 1 point for every £5 spent elsewhere.
24.9% Variable APR
This card is ideal for those who frequently shop at M&S, offering a long interest-free period while allowing you to earn rewards on your purchases.
Pros:
- Long 0% interest period on purchases
- Collect points on spending
Cons:
- Higher APR after promotional period
- Limited rewards on non-M&S spending
8.Barclaycard Platinum 24-month Purchase Card
Barclaycard
- No rewards breakdown available
0% interest on purchases for up to 24 months.
No cashback or points rewards.
24.9% Variable APR
This card is designed for those looking to make large purchases and spread the cost over two years without incurring interest.
Pros:
- Long 0% interest period on purchases
- No annual fee
Cons:
- No rewards structure
- Reverts to high APR after promotional period
9.MBNA 0% Dual Credit Card
MBNA
- 15%Cashback at selected retailers
- 0%No rewards on balance transfers
Up to 25 months interest-free on both balance transfers and purchases.
Up to 15% cashback at selected retailers.
24.9% Variable APR
This card is ideal for those looking to manage debt while also earning cashback on their spending, making it a versatile option.
Pros:
- Long 0% interest period
- Cashback rewards available
Cons:
- Transfer fees apply
- High standard APR after promotional period
Final Words
As you consider your options for low-interest credit cards this January, remember that comparing rates, fees, and benefits is key to making an informed decision. Take the time to evaluate your choices to find the card that best suits your financial needs and goals.
Frequently Asked Questions
The Co-operative Bank 3 Year Fixed Rate Visa offers a fixed interest rate of 8.9% per annum on purchases and balance transfers for three years. With no annual fee and no balance transfer fee, it's designed for long-term interest savings.
The Tesco Bank Clubcard Credit Card focuses on 0% interest periods rather than a direct welcome bonus. You can collect Clubcard points on spending both in and out of Tesco, earning 1% on spending in Tesco and 0.25% on spending outside Tesco.
The Lloyds Bank Ultra Credit Card Visa offers 1% cashback on all purchases for the first 12 months. After the first year, the cashback rate drops to 0.25% on all purchases, allowing users to benefit from cashback rewards.
When selecting a low-interest credit card, consider the APR, any annual fees, and reward options. It's also important to evaluate additional features like introductory offers, balance transfer rates, and how the card fits your spending habits.
Many low-interest credit cards do not charge annual fees, but some may impose balance transfer fees or foreign transaction fees. Always review the terms and conditions to understand any potential costs before applying.
The application process for low-interest credit cards typically involves filling out an online form with your personal and financial information. It's advisable to check your credit score beforehand, as this can influence your approval chances and interest rates.
While it can be challenging to obtain a low-interest credit card with bad credit, some lenders specialize in offering cards to those with less-than-perfect credit histories. It may be beneficial to explore secured credit cards or cards designed for credit rebuilding.
