What are credit card interest rates?
An introduction to interest rates and how you’re charged for borrowing.
When you borrow money on a credit card, you can be charged interest for the service.
The amount of interest you’ll pay is worked out as a percentage of the money you borrow.
This is an interest rate.
- The higher it is is, the more expensive it'll be for you to borrow.
- The lower it is, the cheaper it'll be for you to borrow.
Frequently Asked Questions
Interest is calculated daily and charged to your credit card statement when it’s produced each month.
A variable interest rate is an interest rate that can change over time – whether up or down.
This depends on economic conditions, how you manage your account and a variety of other factors.
A good example is if your credit score changes.
A very low or 0% interest rate/ interest free period given for a set amount of time.
If you research and plan how you’re going to use the introductory offer, you could reduce the amount of interest you’ll pay overall.
Just remember to check if any other fees apply.
And keep an eye on the exact date when your offer runs out and the card returns to its standard interest rate.
This is usually reflected on your credit card statement.
Sometimes, the interest rate isn’t the only cost of borrowing with a credit card.
To account for this, Annual Percentage Rate (APR) considers both a card’s interest rate and any other standard fees.
This means that the APR percentage offers a more complete picture of how much borrowing will cost.
Important legal information
Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065 Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.Visit the Lending Standards Board website
We may monitor or record telephone calls to check out your instructions correctly and to help us improve the quality of our service. Calls from abroad are charged according to the telephone service provider’s published tariff. Not all Telephone Banking services are available 24 hours a day, 7 days a week. Please speak to an adviser for more information.
How much we lend and the issue of a credit card depends on an assessment of your circumstances. You must be 18 or over and a UK resident to apply.
Terms and conditions apply to all Lloyds Bank credit cards benefits. Full details will be sent with your card. After each introductory period ends you will be charged at the appropriate standard rate.
Mastercard® is a registered trademark, and the circles design is a trademark of MastercardInternational Incorporated.