How guaranteed rates for credit cards will help boost transparency

Applying for credit cards can be a minefield. Often the interest rate you’re offered at the end is completely different to the one you see advertised at the beginning. But things are changing.

With Experian’s guaranteed rates, you’ll be able to see the Annual Percentage Rate (APR) you’ll get before applying for cards from selected lenders.

Currently, credit card providers only need to offer their headline APR – the interest rate they advertise for a card - to a minimum of 51% of customers that apply.

That means the remaining 49% can be offered a different deal at a more expensive rate. Customers often won’t know what that is until they’ve completed an application, which will also leave a mark on their credit report.

However, if you see Guaranteed APR, then it means the rate you see is the rate you’ll get before you apply. The guaranteed rate includes the APR, balance transfer and purchase rates if available. The cards will be displayed in order of eligibility – from the credit card you are most likely to be accepted for to the least likely.

This can help you make better financial decisions, as well as boost transparency in the credit card market.

Here are three ways comparing credit cards can help you:

  • Searching won't affect your credit score
  • See your chances of being accepted before you apply
  • The interest rate you see is the rate you’ll get

With Experian, you can compare credit cards from a variety of companies.

However, not all credit card companies we partner with are able to show guaranteed rates. Where it’s not possible to show you a guaranteed rate, we’ll show your eligibility rating. This will help you understand your chances of approval before you apply, but the APR may vary.

Just remember, we’re a credit broker, not a lender.† This means we can help you find deals, but we don't provide credit or decide whether to approve you.