What are the best low-rate credit cards

Low-rate credit cards provide an alternative to the more popular purchase or balance transfer cards, especially for those people who don’t want to constantly chase promotional rates.

Many of these cards don’t charge a balance transfer fee so, on larger balances, it may be cheaper to opt for this type of card compared with an interest-free card, especially if you are unable to repay the balance before the promotional offer comes to an end.

Here are five of the best.

Sainsbury’s Low Rate Credit Card

This card from Sainsbury’s offers the lowest standard credit card rate in the market at just 6.9pc. Only available to Nectar cardholders, although a Nectar account can be easily opened at no cost, but loyalty points will not be earned on any spending on the card.

Kevin Mountford, head of banking at Moneysupermarket.com, said: “The card doesn’t come with any promotional balance transfer or purchase offers, but this card could be a cheaper borrowing option than a personal loan. It is only available to those with a good or excellent credit rating.”

Barclaycard Platinum Simplicity Card

Barclaycard’s Platinum Simplicity Card has one of the lowest interest rates currently available at 7.9pc on both balance transfers and purchases. There is no handling fee on balance transfers. Cardholders can manage their accounts online, and make contactless payments using the card on purchases up to £15. You must be 21 to apply for the card, with at least four years of managing credit commitments well, always making payments on time. You must also have a regular income of over £20,000 a year and not already have a credit card with Barclaycard.

Capital One Click Card

This card is designed specifically for shopping online, has a low annual percentage rate of 9.94pc on purchases and no fees to transfer a balance. Capital One are currently offering a £10 bonus for every account opened before 31 March.

“The main advantage of this card is that it gives you access to exclusive discounts when you use it to shop online,” said Mr Mountford.

Current offers include 20pc off anything on the Ted Baker site, plus free delivery, 25pc off travel at Travelpack.com and 30pc off on the Zavvi entertainment site. The card promises enhanced security for those nervous about handing over their details online. To qualify for the card you must be a UK resident, have a minimum income of £20,000 and be aged at least 21. You may be refused if you have applied for a Capital One card in the last six months.”

Lloyds TSB Advance Card

This card from Lloyds charges no interest on purchases for the first six months, and after that charges a low 11.95pc variable APR, lower than many rates on other interest-free cards. The card also offers 4.9pc interest on balance transfers for 12 months with a 3pc handling fee when you move your debts over. “It is probably best just to use the card for purchases, as there are other deals offering much more competitive rates on balance transfers,” said Mr Mountford.

The Co-operative Bank Fixed Rate Credit Card

The Co-operative Bank offers a rate of 9.9pc APR fixed for 5 years, with the rate reverting to 12.9pc, still lower than many other cards on the market. This card provides peace of mind that the rate won’t rise, ideal for anyone looking to fix their repayments over this period.