Halifax has launched a new market-leading low-rate credit card offering a single rate 6.45% on purchases and interest-free balance transfers.
The Low Rate card has one simple rate, and charges no fee on balance transfers made within the first 90 days. After this, a 3% charge will apply.
Lloyds Bank and Bank of Scotland - both fellow members of the Lloyds Banking Group - have unveiled identical cards, each offering 6.45% interest and no balance transfer fee for the first 90 days.
Just be aware that only 51% of successful applicants are required to be offered the top rate advertised rate, others may get 10.95% or 14.95% depending on their credit history.
[SPOTLIGHT]Read How to repair your credit rating.
How the cards compare
The three cards from Halifax, Lloyds Bank and Bank of Scotland come with the lowest APRs on the market.
The next best card is the MBNA Low Rate Credit Card, which comes with a representative APR of 6.6%, followed by the Tesco Bank Clubcard Credit Card with Low APR, which boasts a representative APR of 7.8%. On the plus side, you do earn Clubcard points with the Tesco card.
Is a low rate card right for me?
A card which comes with a low rate for life is useful for borrowers who don't want to have to keep chopping and changing between 0% cards. It's a good long-term option, as you don't have to worry about keeping track of exactly when introductory offers come to an end.
However, if you have big purchases coming up, or sizeable debt on a card already, and you need to pay it off in chunks then you will be better off with a 0% credit card. Check out The best 0% purchase credit cards and The best 0% balance transfer credit cards.
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