Low-interest credit cards

Find a card with a low APR

Find a card Go to your account

Pay less, stress less

Lower credit card interest could help make borrowing costs easier to manage

Check cards with confidence

See your chances before you apply with no effect on your credit score

Little extras you’ll love

Unlock Meerkat Rewards and enjoy offers on cinema, dining, and more*

We're impartial – we only make money when we save you money

4.9/5 Excellent

We only compare cards from FCA-regulated providers, including:

See a full list of our credit cards providers

What is a low-interest credit card?

A low-interest rate credit card typically charges a lower Annual Percentage Rate (APR) than standard cards. For example:

The average APR in June 2026 was 36%, according to Moneyfacts
Whereas typical low-interest credit cards offer 9-13% APR, according to Experian

This means that taking out a low-APR credit card can reduce the cost of borrowing if you don't always pay off your balance in full each month.

That said, the cheapest way to borrow is through a 0% interest credit card – so if you qualify for one of them, it's worth investigating that option first.

When could a low-interest credit card be useful?

A low-interest credit card can be a helpful financial tool if you:

Compare credit cards

Carry a balance

If you don't usually pay off your entire balance each month, low-interest credit cards will cost you less than standard, higher-rate ones (but remember, 0% cards will be even cheaper).

Want a consistently low interest rate

Unlike interest-free periods on 0% credit cards, the interest rate won't expire on a low-interest credit card. It may change, but it should always be lower than standard rates.

Want flexibility

Using a low-interest credit card to pay for larger purchases gives you the flexibility to repay over time, but bear in mind it'll still cost you more than a 0% card.

Compare credit cards

What are the pros and cons of a low-interest credit card?

As with any credit card, there are positives and pitfalls to watch out for with low-APR credit cards:

Pros

Lower-than-average interest charges on outstanding balances, meaning you can spread the cost of bigger purchases more affordably than on a standard credit card
Could give you the breathing space to pay off debt faster and pay less interest overall versus standard credit cards
May be simpler to manage than 0% cards, which only offer 0% for a set period, as there’s no end date to keep an eye on.

Cons

More expensive than 0% cards
Interest is still charged if you don’t pay off your balance
The low rate usually won’t apply to cash withdrawals.

Quick tip

If you clear your balance in full each month, you usually won’t have to pay any interest at all – win!

How do low-interest credit cards differ from 0% interest cards?

Low-interest credit cards

- Charge a small amount of interest
- Offer a consistently lower ongoing interest rate
- Though the interest rate can go up or down with market rates, it should always stay lower than a standard card rate.

0% interest cards

- Don't charge interest (if you keep up with your minimum monthly payments and stay within your credit limit)
- Can give you an introductory 0% period of anything from a few months to a couple of years
- Move you onto a much high rate once the offer ends
- Some cards only offer 0% on purchases made in the first month or two, even if they let you pay the debt off at 0% for longer.

What our expert says...

“While low-interest cards are useful, 0% cards are even better – so check whether you qualify for one of these before going for an interest-charging card.

"Whatever type of card you take out, just remember that paying off at least the minimum sum each month is crucial if you want to avoid fees, a credit score hit, and the possibility of your card or interest rate offer being withdrawn.”

Ele Clark, Personal finance and insurance expert

Am I eligible for a low-interest credit card?

To get a low-interest credit card, you’ll need to:

Be at least 18
Be a permanent UK resident
Earn a regular income
Have a UK bank account

Having a good borrowing history and credit score increases your chance of being approved as well as getting more favourable rates. Lenders also have their own individual eligibility criteria on top of this basic checklist.

You can check which credit cards you could be accepted for using our credit card eligibility checker. It’s a soft search so won’t leave a mark on your credit file.

Check eligibility

Man using laptop changing broadband provider

What should I think about when comparing low-interest credit cards?

When comparing low-interest card offers, think about:

APR

The APR (or annual percentage rate) is the total cost of borrowing over a year. This includes interest plus any other standard charges, such as annual or monthly fees.

Balance transfer fees

If you're considering a low-interest balance transfer card, you'll usually need to pay a fee that’s a percentage of the amount being transferred.

Card fees

Some low-rate cards come with monthly or annual charges.

Eligibility

Some deals may only be available to new customers, or those with high credit scores. This is where using an eligibility checker comes in handy.

What do I need to compare low-interest credit cards?

To compare low-interest credit cards with us, you’ll just need to share a few details about yourself, including:

Email address
Your name, age, and marital status
Your current address and the date you moved in
Your previous address
How many dependants you have
Your employment status and annual income
Details of your outgoings such as mortgage/rent

Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.

Check your eligibility

What are the alternatives to a low-interest credit card?

Depending on your financial goals, it could be worth looking at other credit card types:

0% purchase card

0% purchase cards offer the possibility of avoiding interest altogether, if you clear your debt within the 0% period

0% balance transfer card

0% balance transfer cards are handy for shifting over existing debt and clearing it down with no interest over a set time

Credit builder card

Credit builder cards help you build your credit rating if you have a poor score or no credit history

Personal loan

Personal loans are less flexible than a credit card but give you fixed monthly payments over a set time. More suited to bigger, planned purchases

Arranged overdraft

Arranged overdrafts can be useful for short-term spending or emergencies. You’ll be given a limit and charged interest to use it (unless you get an interest-free buffer)

Bear in mind...

Slipping into an unarranged overdraft by going over your agreed limit could lead to charges and affect your credit score.

More info on credit cards

Curious to find out more about your credit card options? Our handy guides can help

Eligibility

Credit card APR

Understand how interest rates work and how they affect your repayments

No-fee credit cards

Benefit from everyday card features without an annual fee

Balance transfer credit cards

Moving existing debt to a 0% card can help you save on interest for longer

0% purchase credit cards

Spread the cost of big buys interest-free with a 0% purchase credit card

All credit card guides

Credit card repayment calculator

A simples way to estimate your repayments and plan ahead

Credit card eligibility checker

Check your chances risk-free before you make an application

FAQs

Are low-interest credit cards available to everyone?

Eligibility often depends on your credit history and the lender’s requirements. Those with good or excellent credit scores are more likely to be approved.

Do low-interest credit cards come with fees?

Some may charge fees while others don’t, so it’s always good to shop around and check the card’s terms carefully before applying.

Will I still be charged interest if I pay late?

Yes, you’ll still be charged interest if you pay late. Late payments can also lead to other penalties and may harm your credit score.

Looking for something else?

Man sitting in front of a laptop while holding his phone and credit card

0% purchase credit cards

Woman holding credit card while sitting at desk

Compare balance transfer credit cards

Close up of a calculator on a table with papers around

Personal loan calculator

Reviewed 22 Jul 2026 by Charlie Evans Personal finance expert

Charlie is a senior commercial leader with close to a decade of experience across the UK’s leading personal-finance and comparison platforms. Before joining Compare the Market as Head of Commercial in 2024, he held senior commercial roles at TotallyMoney and MoneySuperMarket Group.