The UK's Cheapest Credit Cards

Although most credit cards provide you with an interest-free period of between 45 and 59 days, this applies only if you pay off your entire balance in full each month. Thus, if you spend on a credit card and don't clear your balance every month, then your card issuer will charge interest on your outstanding debt. My most recent analysis (covering more than three hundred different cards) showed that most credit cards charge a yearly interest rate of at least 16.5% APR on purchases. This is almost eleven percentage points greater than the Bank of England's base rate, which is currently 5.75% a year.