Executive Summary -
A card with arguably the lowest APR in the market today at 7.25%. It is a no frills card which will appeal to those who carry a balance, have excellent credit and is looking for an on-going low rate.
The Iberia Bank Classic Visa is one of four Visa Cards in their line up. Most of their cards are known for having low rates and this one is no exception. Here is what you would be getting if you are approved.
Rates and Fees - Firstly, as with most cards, there are no annual fees. The interest rate you will get could be either 7.25%, 10.25% or 13.25%. The rate that you will get depends on their assessment of your credit profile. A 7.25% APR is perhaps the lowest (save for 0% teaser deals) rate you can get in the market today. And even 13.25% is not too shabby at all.
There is no introductory APR for purchases. However, there is a introductory balance transfer offer and here are the terms. You get a 1.99% APR for 6 months for balance transfers and the BT fee is 2% (slightly lower than the typical 3% that most cards charge).
Being a Visa card, you will get all the perks that come with the Visa Network. That includes, auto collision damage waiver insurance, travel accident insurance, roadside assistance and travel medical emergency services.
Given that this is a no frills card, the key question is how does it compare with others in terms of fees and rates. Firstly, let's look at the ongoing APR. At 7.25%, this is arguably the lowest ongoing rate in the market today. The next lowest is at 8% from the BarclayCard Ring MasterCard®. With this card, the risk is that you may not get approved for 7.25% APR. You might be approved for a slightly higher rate at either 10.25% or 13.25%. In contrast, the Barclays Ring card has a flat 8% APR.
In terms of 0% teaser deals for purchases, there is none for this card. In you are looking a card that offers such a deal, then there are others that offer really long 0% deals for purchases. You can check out our compilation of 0% APR purchases cards here. As far as balance transfers go, this card does not have the lowest rate (1.99% versus 0% for most cards). Neither does it have the longest introductory period (longest today is 18 months vs 6 months for this card). But despite not having the best teaser deals, what this card has is an extremely low rate (which most other cards cannot match).
Is This A Good Card?
After going through the details and comparisons, this is what I think. Being a no frills card, it will appeal the most to folks that simply want the lowest APR for their purchases and balances. The person who gets this card is one who carries a balance, but has excellent credit. He or she is not too bothered 0% deals. If this describes you, then I will not hesitate recommending this card. If you are concerned that you may get a higher rate than 7.25%, then I would suggest getting the BarclayCard Ring MasterCard® instead it has a flat 8% rate.
What is you are looking for a 0% deal? Well, it that is the case, then this will not be the best card to get. There are better balance transfer cards and better 0% deals available. What you can do is to get these other cards with better deal and also this card. When the introductory period ends, you can continue using this card to take advantage of their low rates.
What if you are looking for a reward or cash back card and yet want a low interest rate? Well, Iberia's gold version has it's lowest rate at 9.50% and pays 1% cash back for all purchases. That is an alternative if you are looking for a cash rewards card with a low rate.