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TPG UK always recommends paying your balance in full each and every month to avoid interest charges, which usually outweigh any rewards benefits you receive. But if that’s not possible, there are cards that provide a lower interest rate than some of the more expensive (but more rewarding) credit card options.

One of those is The American Express Rewards Low Rate Credit Card, which has no annual fee and — as the name suggests — a low interest rate.

Who Is This Card For?

This card is marketed towards those whose primary focus is on a low rate of interest charged on purchases, while still having access to some rewards benefits.

Welcome Bonus and Annual Fee

This card has no annual fee but still provides a welcome bonus. You’ll get 2,500 Membership Rewards points for spending £1,000 in the first three months of holding the card. Based on TPG UK’s latest points valuations, those 2,500 Membership Rewards points are worth approximately £38.

Representative example: 9.9% APR variable with a purchase rate of 9.9% per annum variable with an assumed credit limit of £1,200.

Earning

There’s a straightforward earn rate of 1 Membership Rewards point per (full) £1 spent. Unfortunately, as this is a no annual fee card, there are no categories or purchases that earn a higher rate than this.

Redeeming

The Membership Rewards can be transferred to a number of airline and hotel partners. With most airlines, you’ll receive a 1:1 transfer rate, meaning your 5,000 Membership Rewards would become 5,000 British Airways Avios. Read our complete guide to Membership Rewards here.

You could alternatively elect to redeem those 2,500 Avios for a £12.50 gift voucher for retailers like Boots and Currys PC World, although we think there’s more value in transferring them to an airline or hotel program instead.

Perks

  • A low 9.9% interest rate on purchases.
  • You can opt to have free supplementary cards for any close family and friends in order to maximise your Membership Rewards or low-interest rate. But remember you, as the primary cardholder, will still be responsible for paying the balance each month.
  • There’s travel accident insurance for up to £150,000 when you use the card to purchase that transport.
  • Purchase protection up to £2,500 and refund protection up to £200 for eligible items (conditions apply).

Keep in mind that some of these benefits, such as the insurances, are subject to enrollment.

Which Cards Compete With This Card?

American Express UK offers a trio of Amex Rewards Cards that are all branded similarly. The other two in this trio are the Rewards Credit Card from American Express UK, which offers twice the welcome bonus (5,000 Membership Rewards points), and the Rewards Purchases Credit Card from American Express UK (review coming soon), which offers a generous 0% interest rate on purchases for 18 months.

Both of these other cards offer arguably a better value proposition than this card if you are interested in either interest-free periods for purchases.

Bottom Line

The Rewards Low Rate Credit Card from American Express UK isn’t a terribly exciting card. The welcome bonus is low, but fortunately, there is no annual fee.

This card seems to be pitched towards those who may not pay the balance in full each month, looking instead to pay the lowest ongoing interest rate. Again, we would always recommend paying your balance in full each and every month.

You can apply for this card here.

Featured image by The Points Guy

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The American Express® Business Platinum Card

The Business Platinum Card from American Express offers 40,000 bonus Membership Rewards® points as well as a slew of other valuable benefits like lounge access, hotel elite status and a digital subscription to The Times and The Sunday Times for Primary and Platinum Supplementary Cardmembers.

Apply Now
More Things to Know
  • Earn 40,000 Membership Rewards points when you spend £6k in your first 3 months of Card Membership
  • Up to 99 free Supplementary Cards - one complimentary Platinum Employee Cards and 98 Complimentary Gold Employee Cards
  • Global Lounge Collection - Access to more than 1,200 airport lounges across 130 countries, including The Centurion® Lounges and membership of Priority Pass™
  • Hotel Status at Hilton, Marriott Bonvoy™, Meliá Hotels International, Radisson Hotel Group, Shangri-La Hotels & Resorts – enjoy benefits such as complimentary upgrades, early check-in and late check-out, enhanced loyalty points, complimentary Wi-Fi and more
  • The Times and The Sunday Times annual digital subscription (£312 value per Card) – available for Primary and all Supplementary Cardmembers
  • Fine Hotels and Resorts – Enjoy a collection of over 1,000 hand-selected iconic 5-star properties worldwide. Receive complimentary benefits worth an average total value of £400 per stay.*
  • £150 statement credit for every booking with onefinestay (unlimited use)
  • Dedicated Account Management Team
Annual Fee
£595
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.