Low-interest credit cards save you money by reducing the cost of debt: When you’re paying less in interest, you can pay back what you’ve borrowed more quickly. A card with a 0% intro APR period will save you the most on interest in the short term.
Look for one with an introductory interest-free period longer than a year. If you tend to carry a balance most months, a card with a low ongoing interest rate will work to your advantage in the long run.
You will find the best low-interest credit cards in this article so that you can make the best decision for your finance.
- Who has the Lowest Interest Rate Credit Card?
- What Are the Types of Low-Interest Credit Cards?
- How Can You Choose a Low-Interest Credit Card?
- What is a Good Interest Rate on a Credit Card?
- What is the Best Credit Card 2020?
- How do I ask for a Lower Interest Rate?
- How to Lower Your Credit Card Interest Rate
- What is an Excellent Credit Score?
- How Can I Get a Credit Card With Low Interest?
- Why is Credit Card Interest so High?
- What is The Difference Between 0% Credit Card And a Low-interest Card?
- How do 0% Credit Cards Work?
- What is a Good Interest Rate on a Credit Card?
- What is The Best Credit Card For The Average Person?
- What is The Best Low-Interest Credit Card For Bad Credit?
- Low Fixed Interest Credit Cards
- No Interest Credit Cards For 24 Months
- Low-Interest Credit Cards For Excellent Credit
- 18 Months no Interest Credit Card
- Low Rate Credit Cards For Life
- Low-Interest Credit Cards For First-Timers
- Low-Interest Credit Cards For Fair Credit
- Chase Credit Card Interest Rate
- 0% Interest Credit Cards Balance Transfer
Who has the Lowest Interest Rate Credit Card?
While it’s never a good idea to carry a credit card balance, there are times when it can’t be avoided. Financial emergencies can happen to anyone. You might need a new roof, lose your job or have an illness that leads to medical-related debt.
Read Also: What are the Credit Cards with the Best Options?
A personal loan might be the least expensive option if you think it will take more than two years to pay off your debt. But if you plan to pay off your debt in less than two years, take a look at the best low-interest credit cards. Many of these cards have 0% APR introductory offers, which last anywhere from 12 months to 21 months.
Low-interest credit cards are tools that can help you pay down debt while not digging yourself into a deeper financial hole. And in some cases, they offer a zero percent APR period that can provide a temporary break from credit card interest.
Consumers have a lot of low-interest credit cards to choose from, but which one is right for you? Find out below.
1. Discover it® Cash Back
Why this is one of the best low-interest credit cards: With Discover it Cash Back, you’ll get a 14-month 0% APR on purchases and balance transfers. After that, there is an 11.99% to 22.99% variable APR. Cashback rewards sweeten the deal, offering 5% cash back each quarter in rotating categories, such as Amazon.com, grocery stores, restaurants, gas stations, and when you pay using PayPal, up to the quarterly maximum when you activate.
All other purchases earn unlimited 1% cashback. There’s no annual fee, and Discover will match your cashback earnings at the end of the first year.
2. Blue Cash Everyday® Card from American Express
Why this is one of the best low-interest credit cards: The most creditworthy applicants will score a low annual percentage rate on this card, but it’s the best fit for consumers looking to earn cash back on everyday purchases. You’ll get 3% cash back on up to $6,000 annually at U.S. supermarkets and then 1% back; 2% back at gas stations and department stores; and 1% back on other purchases.
3. American Express Cash Magnet® Card
Why this is one of the best low-interest credit cards: Those looking for flat-rate cash back may like the 1.5% back on all purchases this card delivers. Good credit standing lets you access the lowest annual percentage rate offer, plus all new cardholders get 0% APR on purchases for 15 months.
4. Discover it® chrome
Why this is one of the best low-interest credit cards: Discover it chrome gives cardholders a 14-month 0% introductory APR for purchases and balance transfers and no annual fee. After that, there is a 11.99% to 22.99% variable APR. Gas and restaurant purchases earn 2% cash back on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. You’ll pay no annual fee for this card.
5. Citi® Diamond Preferred® Card
Why this is one of the best low-interest credit cards: This card has real appeal for those looking to do a balance transfer. An 18-month 0% annual percentage rate for transfers made within four months of opening your account can help you pay off lingering balances. After that, there is a 14.74% to 24.74% (variable) APR.
6. Citi® Double Cash Card
Why this is one of the best low-interest credit cards: The 18-month 0% introductory annual percentage rate on balance transfers is a top benefit. After that, there is a 13.99% to 23.99% (variable) APR. You’ll get 1% cash back when you make a card purchase and 1% back when you pay your bill. Plus, if you carry the occasional balance, the APR is below average for a rewards credit card.
7. Discover it® Miles
Why this is one of the best low-interest credit cards: Discover it Miles earns unlimited 1.5 miles per dollar on every purchase, which can be redeemed for cash or travel. Discover will automatically match all the miles you’ve earned at the end of your first year. There’s no annual fee, and cardholders get a 14-month 0% introductory APR on purchases (then a 11.99% to 22.99% variable APR applies).
8. Wells Fargo Visa Signature® Card
Why this is one of the best low-interest credit cards: Applicants with strong credit will get a low annual percentage rate on purchases, but the bonus cash back is the real draw of this card. You’ll earn five points per dollar on up to $12,500 spent on gas, grocery and drugstore purchases in the first six months; all other purchases earn one point per dollar.
What Are the Types of Low-Interest Credit Cards?
Low-interest cards have APRs that are lower than average or that have 0% APR introductory offers for a certain period of time on purchases or balance transfers. These cards are a good option for consumers who intend to make several large purchases and basically need to carry a short-term balance.
Low-interest credit cards are also a good choice for consumers who need to do a balance transfer and can pay off – or at least, pay down – their debt during the introductory period.
Let’s take a look at the two types of low-interest credit cards:
- Zero percent introductory APR credit cards
- Low APR credit cards
Zero percent introductory APR credit cards
Zero percent introductory APR credit cards offer 0% APR on purchases, balance transfers or both for a set period of time, usually 12 to 18 months. Note that the introductory periods for 0% APR cards can differ in length. For instance, the card might offer a 0% APR on balance transfers for 21 months, but the 0% APR on purchases might only last for 12 months.
These offers are available to new cardholders making purchases or transferring a balance onto the new card. With 0% introductory APR offers, you have a set period of time to pay off your balance without paying interest. If you pay your balance in full by the end of the promotional period, you won’t pay any interest at all.
Once the promotional period is over, interest will begin accruing at the “go-to rate” on any remaining balance. Be sure you’re aware of the lengths of intro periods so you can plan your monthly payments. You want to make sure you’ll be debt-free, or at least closer to that, before your new, much higher APR kicks in.
Eligibility
You’ll typically need good credit (a FICO score of 670 or higher) to qualify for the best low-interest credit cards. Often, card websites indicate whether good, excellent or average credit is required prior to filling out the application. The predictions are often based on educational scores instead of FICO scores, but they still give you a sense of what credit range you fit into.
In addition to your credit score, card issuers will look at your debt-to-income ratio, which is how much recurring monthly debt you have compared with your gross monthly income.
Recurring monthly debt includes, for example, credit card payments, loans, and mortgage or rent payments. Other expenses, such as groceries, gas and taxes aren’t included in your DTI ratio.
Lenders use your DTI ratio to determine if you’re overextended financially. The reasoning is that if you have a high DTI ratio, you’re more likely to default on a mortgage or a credit card.
So, what’s an awesome ratio? A good guideline to follow is the 36% rule, which states that your DTI ratio should not exceed 36%. But this varies among lenders. Some mortgage lenders even accept 43%, and there are FHA-insured loans that accept a DTI ratio of 50%.
Before you apply for a credit card, it’s a good idea to calculate your own ratio. It’s an important thing to know because if it’s high, you should reconsider applying for more credit at this time.
If your ratio is low, which is around 20%, it implies that you’re in a good position to pay your balance.
Potential lenders also review your credit report and if you have delinquent accounts or a history of bankruptcy, you might not be approved for a new low-interest credit card or for 0% introductory APR credit card offers.
Timeline
Once you’re approved for a balance transfer credit card, you’ll most likely have a time limit to do the transfer. The time limit is usually within a couple of months, which varies by issuer, but you’ll typically have anywhere from 60 to 90 days to complete your transfer, starting with the date your new account is established.
Don’t put off starting the transfer process because it can take several weeks to complete, from start to finish. Make sure you continue to make payments on the credit card that had your original balance.
Call the issuer and also check your account online to determine if the transfer has been done. If you miss payments during the transfer stage, you could get hit with late fees and other penalties. Your credit score might take a dive, too, if the late payment gets reported to the bureaus.
The introductory 0% APR lasts for the duration of the promotional period. This period varies depending on the card, but is usually between 12 and 18 months, although a few offers last as long as 21 months.
All payments made during the introductory period will apply directly to the principal debt, assuming you haven’t made any charges subject to interest. If you’re paying down a balance, not having to pay interest during this time shrinks the principal amount of debt faster.
Transfer fee
When comparing balance transfer offers, note what the transfer fee will be for each card. There are a few cards that will waive the fee, but the intro periods for these credit cards might also be shorter
There are three different types of balance transfer fees:
- Percentage of the balance transferred. This is typically 3% to 5% and is imposed immediately or within a specified number of days of the balance transfer approval.
- Minimum flat fee. Some credit card issuers charge a percentage of the balance transfer amount or a fee of $5 to $10, whichever amount is greater. This is charged immediately or within a specified number of days of the balance transfer approval.
- No fee. The card issuer does not charge for balance transfers at all or doesn’t charge for a period of time (usually 60 days) after the account is opened. After the free transfer period is over, you may have to pay a percentage or flat fee to perform a balance transfer.
Balance transfer fees are applied on top of the amount of the balance transferred. Remember to take balance transfer fees into account when calculating what your monthly payment must be to pay off the balance during the intro period. In most cases, you’ll still end up saving money on compound interest, but this exercise tells you if you still come out ahead after paying the transfer fee.
Limitations on what can be transferred
Credit card issuers generally place limitations on the type of debt you are allowed to transfer. Often, balances can’t be transferred between credit cards issued by the same financial institution. For instance, if you have a Chase credit card with a balance, you can’t transfer that balance to another Chase credit card.
In addition to credit card balances, some financial institutions allow transfers on outstanding balances from other loans and installment debt. The fine print of the balance transfer offer will state the type of debt you’re allowed to transfer.
Important note: If you’re consolidating debt held by someone else, such as a spouse, keep in mind that any debt transferred onto a balance transfer card then becomes the responsibility of the account owner.
Your balance transfer amount can’t go over the credit limit set on the new card. So, you might not have the opportunity to transfer every last cent of debt you owe, but you can still transfer what’s allowed and make some progress.
To transfer small balances from multiple cards, you have to decide which card balances you want to pay first. You then provide the new credit card issuer the account numbers and payment amounts for each balance you want to transfer.
Interest charges for new purchases
While some balance transfer cards extend the 0% offer to include new purchases, not all do. If the card does not have a 0% APR on new purchases, any payment amount above the minimum monthly payment will go toward paying the new purchase balance rather than the transferred balance.
According to the Credit Card Act of 2009, when a card has balances calculated at different interest rates, card issuers must apply payments above the minimum to balances with the highest interest rate first.
While this can save you interest charges, it also makes it more difficult to pay off the balance with 0% if there are new charges added to the card that are subject to interest. This is only one of several reasons you don’t want to use your balance transfer card for new purchases.
Low APR credit cards
According to U.S. News research, the average APR for all credit cards is between about 17% to 24%. Credit cards with a low ongoing APR have an interest rate that’s below average. These low-interest credit cards also might include a 0% APR introductory offers.
Low-interest credit cards are ideal for consumers who need a card with a low APR in case a short-term financial emergency arises. For those who can’t qualify for a 0% introductory APR balance transfer offer, transferring a balance to a card that has a lower interest rate than your current one still has monetary benefits.
It’s not a good idea to use a credit card to finance a large purchase over time. If you’re sure you can pay it off before the intro period ends, that’s fine. But keep in mind that if your balance is so large you can’t pay it off before the intro rate ends, then reconsider using a credit card. If you’re going to pay interest, a personal loan could be a cheaper choice.
Balance transfer cards are a better choice for existing credit card balances
Keep in mind that a low interest credit card does not always mean it has a 0% APR. If you have existing debt, a card with a 0% APR on balance transfers is the better option for saving money on interest.
But if you don’t qualify for the top offers, abalance transfer card is still a possibility. Let’s say you have a $5,000 balance on a credit card with a 23.99% APR. If you can transfer your balance to a credit card with a 10.99% APR introductory offer for 12 months, then you’ll at least save some money.
Transferring debt to a low-interest credit card still incurs interest payments, but it’s better than paying interest at the original higher rate.
How Can You Choose a Low-Interest Credit Card?
If you have very good credit, you have an abundance of choices when it comes to low-interest credit cards. But before you apply for a low-interest credit card, research the terms and conditions (and the rates and fees) of each card to find the best fit. And don’t forget to consider the length of the intro period if it’s a balance transfer card.
Here are six simple steps to take to find the right low-interest credit card.
1. Determine whether you need a 0% introductory rate or low APR card, or both
A card with a 0% introductory offer on balance transfers or purchases is good for consumers who need to make a large purchase or pay down or pay off a large balance in a specified time window.
A low APR card, on the other hand, is a good credit card to have in your wallet. Sometimes, life is unpredictable and expensive. Low-interest credit cards can be a lifesaver if you have a financial emergency. If you find yourself in a sticky situation and need to carry a balance for a few months, you’ll have a card to use that charges low interest.
2. Compare interest rates
Research low-interest credit cards and compare APRs to find the card that fits your needs with the lowest available interest rate. Keep in mind that other factors, including balance transfer offers, annual fees and other fees, may outweigh the benefit of having the absolute lowest APR.
3. Subtract annual fees
Some, but not all, credit cards charge annual fees. If you’re using a balance transfer card to pay down debt, annual fees can impede your progress. If you choose a credit card with an annual fee, be sure that the reduction in interest charges is greater than the fee.
4. Understand late fees and penalties
If you make a late payment, there can be significant penalties, including late fees and loss of your balance transfer offer. Late fees can be as high as $39 for each late payment. Some cards also apply a penalty APR if your payment is more than 60 days late. This rate is often significantly higher than the regular APR. Pay attention so this doesn’t happen to you. Set up text or email reminders so you never miss payments
5. Compare cardholder benefits
Many credit cards have benefits, including travel insurance, rental car insurance and extended warranty coverage on purchases made with the card. When you take advantage of the perks, you get extra value from the card.
6. Estimate rewards
Many rewards cards – cards that offer cash back, miles or points with purchases – also offer balance transfer deals. Rewards cards usually don’t earn rewards on balance transfers. But really, it’s best to wait until the transferred balance is paid off before you use your card to make new purchases.
What is a Good Interest Rate on a Credit Card?
A good APR varies based on your creditworthiness and the type of card you have. If you have good credit, a good APR is easy to come by — but what qualifies as a “good” annual percentage rate may vary based on several factors.
APRs are tied to a benchmark figure called the prime rate, which is the lending rate that banks offer to customers with the best credit. When the prime rate increases, credit card interest rates usually do, too.
Some cards have APR ranges — for example, 13% to 23% — which may depend on the type of credit card and your specific creditworthiness. The better your credit score, the lower your interest rate. That’s why the lowest advertised APR isn’t always what you’ll get.
Of course, if you don’t carry a balance from month to month, the APR is irrelevant because you’ll never be charged interest. But if you do carry a balance, as 47% of Americans who have credit cards do, then the APR will determine how much interest you pay over time.
How to evaluate APRs
The average APR charged in the third quarter of 2019 for credit card accounts that incurred interest was 16.97%, according to the Federal Reserve. NerdWallet recently found that over the last five years, average credit card interest rates have increased by 35%.
But not all credit cards are created equal — and some will be more expensive to carry a balance on than others. For example, a rewards credit card with benefits and perks is likely to have a higher APR than a balance transfer credit card.
And different transactions — purchases, balance transfers and cash advances — may have different APRs on the same card. There’s even sometimes a penalty APR for late payments. These rates are spelled out in the credit card’s terms and conditions, so be sure to review them.
If a low APR on purchases is your priority, you might also consider researching options from credit unions, where interest rates on credit cards tend to be lower than at major banks.
What to expect from cards with low APRs
Depending on the issuer, low-interest credit cards usually require a good credit score — 690 or higher — to qualify.
These cards may lack some of the bells and whistles of rewards credit cards, but they can save you money on interest if your account has a balance each month — such as from financing a large purchase or transferring an existing high-interest balance to the card.
An ideal APR is a 0% introductory offer that lets you avoid interest payments for a period of time. The U.S. Bank Visa® Platinum Card, for example, offers a lengthy 0% intro APR period: 0% intro APR for 20 billing cycles on purchases and balance transfers, and then the ongoing APR of 13.99% – 23.99% Variable APR.
The second-best option is a low ongoing rate. For example, the Lake Michigan Credit Union Prime Platinum Card makes NerdWallet’s list of best credit union credit cards. The ongoing APR is 6.25% Variable.
What is the Best Credit Card 2020?
We’ve spent thousands of hours analyzing the credit card market in order to identify the best credit cards for a wide range of needs and objectives. This list represents our top rated cards across a number of categories, all driven by our rating methodology, comprehensive card database and proprietary points valuation models.
We focus on highlighting the best cards possible and do not give any preference to cards from which we may receive compensation. These are the cards we’d recommend to our family and friends, and they’re the same ones we’re recommending to you.
1. Capital One® Quicksilver® Cash Rewards Credit Card
The Capital One Quicksilver Credit Card is our best overall credit card and best for cash back because of its combination of low fees, low interest and high rewards earning rate. With no annual fee you don’t need to worry about making sure you’re extracting maximum value from the card every year to make it worth it.
The absence of a foreign-transaction fee makes this a rare cash-back credit card that’s worth bringing on a trip abroad once travel is no longer a public health concern and helps to make a compelling case that if you’re only going to carry one card that this should be it.
2. United℠ Explorer Card
Based on our analysis, the United Explorer offers the highest value per mile earned of any airline credit card, and miles can be redeemed in multiple ways, including for flights on member participating airlines in its Star Alliance, one of the largest global airline partnerships.
As with our best hotel card, you’d need to be committed to United as the airline you’ll primarily fly with in order to extract the maximum benefit from the card. The compelling introductory bonus of the card really adds to the value of the card because of the high value placed on redeeming those points with United. The $95 annual fee is in line with its competitors and is waived the first year.
The card does not charge foreign transaction fees which helps make it a good choice for international travel. United recently announced that they have permanently eliminated reservation change fees, which should greatly reduce any traveler anxiety around booking future award travel with earned miles and make the introductory bonus on this card that much more appealing.
3. Chase Sapphire Reserve®
The Chase Sapphire Reserve is our best credit card for travel because of it’s competitive one-time point bonus, annual travel credit, high rewards earning rate, the fact that points are worth 50% more if you redeem them for travel through the Chase Ultimate Rewards portal, and the ability to transfer points on a 1:1 basis to eligible hotel and airline partners.
While the annual fee is high, if you’re an avid traveler the annual travel credit can help justify it and it has numerous other travel-related benefits that make this the best card for travel if you’re not ready to commit yourself to a single airline or hotel.
4. Bank of America® Travel Rewards for Students
The Bank of America Travel Rewards for Students is our pick for the best student credit card because of the high earning rate on its rewards program that you can then redeem all sorts of travel expenses. It also has a long introductory APR on purchases and no annual fee which add to the card’s strong rating.
Plus, the lack of foreign transaction fees makes this an ideal card for student travel outside the U.S. Bank of America Travel Rewards for Students also offers excellent credit education and monitoring services.
5. World of Hyatt Credit Card
The World of Hyatt Credit Card is our best for hotels because it consistently offers the highest point redemption value of any hotel program we have analyzed, though the points tend to be more challenging to accumulate compared to other hotel programs.
The World of Hyatt Credit Card also offers a competitive one-time bonus, a complimentary night at a category 1-4 Hyatt hotel on each cardmember anniversary, and a very high earning rate on spend at Hyatt hotels. These benefits could quickly justify the card’s annual fee.
6. Chase Sapphire Preferred® Card
The Chase Sapphire Preferred has a bonus (potentially worth up to $1,000) as large or larger than the bonuses with many ultra-premium travel cards with an annual fee that is substantially less than cards with competitive one-time bonuses. It also has flexible redemption options and generous rewards making it one of the most valuable travel-rewards cards on the market.
It pays 2 points per dollar spent on travel and restaurant purchases, with each point worth a cent for cash back, but worth 1.25 cents if redeemed for travel through Chase Ultimate Rewards. The $95 annual fee can easily be justified by the travel and dining rewards you could earn over the course of a year.
7. Ink Business Preferred℠ Credit Card
Investopedia’s pick for best business credit card is the Ink Business Preferred card from Chase because of its strong points rewards program through Chase’s Ultimate Rewards program that receive a 25% premium when redeemed for travel.
The card also pairs really well with other Chase business and consumer cards that earn Ultimate Rewards. Ink Preferred also currently offers the highest introductory bonus of any business card in the business card market at 100,000 points after spending $15,000 in purchases during the first three months of account opening. This bonus is worth $1,250 when redeemed for travel through Chase Ultimate Rewards.
8. Citi Simplicity®
We chose the Citi Simplicity Card as the best balance transfer card in the market primarily due to its exceptionally long 18 month 0% APR introductory period along with consumer-friendly terms like no annual fee, no late fees or penalty rates.
While Simplicity offers no rewards we don’t consider that a negative in the case of a balance transfer card, as rewards can tempt counterproductive additional spending when trying to dig out from debt. Citi does charge a 3% balance transfer fee but the length of the introductory period justifies extra cost in terms of savings potential.
9. Capital One® Secured Mastercard®
The Capital One Secured Mastercard is Investopedia’s choice for Best Secured Card due to its lack of an annual fee and its security deposit flexibility, allowing customers to make installment deposits over time rather than all up front.
Capital One also provides automatic credit line increases over time with responsible card use and offers an array of non-secured card options that customers can consider once they have built up their credit scores. No annual fee makes the Capital One Secured Mastercard an affordable on-ramp to establishing a positive credit history.
How do I ask for a Lower Interest Rate?
If you’re worried about a high interest rate on your credit card eating into your savings, you should know it’s not a number that’s set in stone. Most cards have a variable interest rate, meaning it can fluctuate based on several factors, including your card issuer’s discretion.
You can negotiate a lower interest rate on your credit card by calling your credit card issuer—particularly the issuer of the account you’ve had the longest—and requesting a reduction.
While the issuer isn’t guaranteed to say yes, you’re most likely to find success if you have a history of on-time payments and your credit score is strong or has recently increased. Sharing personal circumstances like unemployment or other financial difficulties can also help you make your case.
How to Lower Your Credit Card Interest Rate
If you carry a balance on your credit card, a higher interest rate, also called an annual percentage rate (APR), can make it harder to put a dent in your debt. When you make payments on a high-APR card, more of your money goes toward interest, which means it takes longer to chip away at the principal balance.
Negotiating a lower credit card interest rate is one strategy to get out of debt. It can also offer breathing room if you’re dealing with a financial emergency that affects your ability to cover all your bills. Here’s how to do it:
1. Start With the Card You’ve Had the Longest
It’s a good idea to ask for lower rates on all your credit cards if you have more than one. But prioritize the issuer you’ve had a card with the longest. Particularly if you consistently pay your credit card bill by the due date, as that track record should give you some leverage.
Let the issuer know why you’re seeking a rate reduction: Perhaps you’re facing a new financial burden such as job loss, a salary cut or unexpected medical bills. Maybe you’ve recently worked on building your credit, and you’d like to focus now on paying off debt. Or you might have received offers in the mail or online for cards with lower rates than you currently have.
Mention that you’ve made on-time payments for several years and ask whether the issuer would consider reducing your interest rate as a way to reward your loyalty and reliability.
Another way to start is to call the issuer of the card that carries the highest interest rate. A drop in that card’s rate will reduce the amount of interest you pay by the biggest margin. But if you haven’t had the card for too long, you won’t be able to use your customer loyalty to your advantage.
2. Ask for a Temporary Break if Necessary
If your issuer isn’t willing to offer a lower rate indefinitely, ask for a temporary reprieve: for instance, a one-year rate reduction of 1 to 3 percentage points. Be sure to mention it if your credit score has recently gone up, which can show that you’ll make payments on time in return. Or you can ask for a temporary break for as long as you’ll need to bounce back from financial trouble.
3. Try Again
Keep detailed notes of all your calls. If a credit card issuer is unable to lower your current interest rate, even for a short time, call again in three to six months. Asking again won’t hurt, especially if you continue to make your payments on time. And be sure to mention any new, lower rate card offers you’ve gotten from competing issuers in the meantime.
While you can threaten to cancel your credit card if the issuer doesn’t agree to your request, know that doing so could negatively impact your credit scores. Canceling a credit card reduces your overall available credit, which means you’ll be using a higher proportion of it if you have debt on other cards. A higher credit utilization rate can hurt your credit scores.
4. Call the Rest of Your Issuers—and Put Your Savings to Use
Repeat this process with the rest of your issuers. Even if you have a card with a much lower balance than the others, call the credit card company and try to negotiate a lower rate anyway. Any money you save on interest helps, and be sure to use those savings to make extra or larger payments on cards with higher rates.
As you pay down debt, consider using the debt avalanche method to pay off your cards with the highest interest rates first. That means making minimum payments on the rest of your cards, and putting as much as possible to the one with the highest interest rate.
Once the first balance you’ve targeted is gone, focus on the next highest-rate card and repeat the cycle. You’ll save the most money in interest over time this way, especially coupled with lower rates from your successful negotiations.
What is an Excellent Credit Score?
For a score with a range between 300-850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most credit scores fall between 600 and 750. Higher scores represent better credit decisions and can make creditors more confident that you will repay your future debts as agreed.
Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships financing auto purchases, to make decisions about whether or not to offer your credit (such as a credit card or loan) and what the terms of the offer (such as the interest rate or down payment) will be.
There are many different types of credit scores. FICO® Scores☉ and scores by VantageScore are two of the most common types of credit scores, but industry-specific scores also exist.
Why Credit Scores Matter
Credit scores are decision-making tools that lenders use to help them anticipate how likely you are to repay your loan on time. Credit scores are also sometimes called risk scores because they help lenders assess the risk that you won’t be able to repay the debt as agreed.
Having good credit is important because it determines whether you’ll qualify for a loan. And, depending on the interest rate of the loan you qualify for, it could mean the difference between hundreds and even thousands of dollars in savings. A good credit score could also mean that you are able to rent the apartment you want, or even get cell phone service that you need.
Think of your credit scores like a report card that you might review at the end of a school term, but instead of letter grades, your activity ends up within a scoring range. However, unlike academic grades, credit scores aren’t stored as part of your credit history. Rather, your score is generated each time a lender requests it, according to the credit scoring model of their choice.
Every time you set a major financial goal, like becoming a homeowner or getting a new car, your credit is likely to be a part of that financing picture. Your credit scores will help lenders determine whether or not you qualify for a loan and how good the terms of the loan will be.
However, credit scores are usually not the only things lenders will look at when deciding to extend you credit or offer you a loan. Your credit report also contains details that could be taken into consideration, such as the total amount of debt you have, the types of credit in your report, the length of time you have had credit accounts and any derogatory marks you may have.
Other than your credit report and credit scores, lenders may also consider your total expenses against your monthly income (known as your debt-to-income ratio), depending on the type of loan you’re seeking.
How Can I Get a Credit Card With Low Interest?
If you’re applying for a credit card and hoping for a low-interest rate, you should know that in general, the better your credit is, the better your chance of qualifying for the card. Generally, borrowers who demonstrate good credit behaviors and have strong credit have a better chance of getting approved for a new credit card with a lower interest rate.
One of the best ways to build and maintain your credit is to make on-time payments every month. It also helps to maintain low balances on any credit cards you may have. Credit card issuers might also look at your income and debt levels. The best way to avoid paying interest on your credit card is to pay off your statement balance in full by the due date every month.
If you do that consistently, it won’t matter what your interest rate is. But if paying off your entire statement balance each month isn’t possible — or you already have credit card debt that you’re trying to pay down — opening a credit card with a low-interest rate could help.
Why is Credit Card Interest so High?
Credit card interest rates might seem outrageous, some stretching beyond a 20% annual percentage rate, far higher than mortgages or auto loans.
The reason for the seemingly high rates goes beyond corporate profit or greed: It’s about the risk to the lender. If you don’t pay your mortgage or auto loan, the bank can take your house or car. If you don’t pay your credit card bill, the card issuer’s options are limited. An issuer can wreck your credit rating and endure the hassle and expense of suing you, but there’s no guarantee it will get its money back.
In finance, generally the more risk you take, the better potential payoff you expect. For banks and other card issuers, credit cards are decidedly risky because lots of people pay late or don’t pay at all. So issuers charge high-interest rates to compensate for that risk.
Unsecured loan: Credit cards are typically unsecured, meaning there’s no collateral — no asset the lender can take if the borrower doesn’t pay. That’s as opposed to a secured credit card, which requires an upfront deposit as collateral, or loan for a house or car, which a lender can repossess and resell to get some of its money back.
That’s why the bank doesn’t give you the title to your car, for example, until you finish paying the auto loan. And unsecured credit card balances are not backed by anybody else’s promise to pay, such as the federal government backing some student loans.
Uncertainty: Unlike with other kinds of loans, credit card issuers don’t ask you why you need the money. You can use it to pay for a medical bill or car repair or to play casino blackjack or buy bobblehead dolls. And banks don’t know exactly how much you’ll be borrowing. It could be zero or your maximum credit line. That uncertainty is a risk to the lender.
Profit: Most card issuers are in business to make a profit for shareholders — or, in the case of credit unions, funnel profits into benefits for members. Credit card interest revenue helps boost bottom lines and pay for the lucrative benefits of rewards credit cards and 0% periods of balance transfer cards.
What is The Difference Between 0% Credit Card And a Low-interest Card?
Both a 0% credit card and a low-interest credit card save you money on interest, but they do it in different ways — short-term versus long-term.
• A 0% card doesn’t charge any interest at all for a period of time after you open the account, then it shifts to an often-high ongoing interest rate. Zero-percent cards are good for people who want to spread out payments on a large purchase or gain breathing room to pay down debt without interest.
• A low-interest credit card doesn’t typically have a 0% period. Instead, it charges an ongoing interest rate that lower than other cards on the market. Low-interest cards are good for people who expect to roll over a balance most months (meaning they don’t pay off their balance in full every month).
While 0% cards often offer rewards as an incentive to keep using them after the 0% period runs out, low-interest cards do not. The lower interest rate is the “reward.”
How do 0% Credit Cards Work?
A 0% APR credit card offers no interest for a period of time, typically six to 21 months. During the introductory no-interest period, you won’t incur interest on new purchases, balance transfers or both (it all depends on the card).
These cards can help you consolidate credit card debt by transferring balances to a balance transfer credit card or pay for new purchases over time without incurring interest.
There are some quirks about 0% APR cards that you should understand before choosing a card, which we explain below.
1. The 0% APR period doesn’t apply to all transactions
While you may be excited about a 0% APR offer, you should be aware that promotional financing doesn’t always apply to all transactions you make with your card. Usually, the transactions that qualify for no-interest financing include new purchases and balance transfers. Other actions, such as cash advances, are excluded.
2. The length of the interest-free period varies by type of transaction
In some cases, the intro period may be greater for one transaction versus the other. The Discover it® Balance Transfer offers an introductory 0% APR period for the first 18 months on balance transfers and an introductory 0% APR period for the first six months on purchases (after 13.49% to 24.49% variable APR).
And some cards only offer a 0% APR on balance transfers or purchases. For example, the Citi® Double Cash Card offers 0% for the first 18 months on balance transfers (then 13.99% to 23.99%, variable APR), but no special financing for purchases. New purchases will immediately incur a 13.99% to 23.99% variable APR.
3. There are limits to how much of your balance qualifies for no interest
When you are approved for your new credit card, you’ll be assigned a credit limit based on your application. A credit limit is the maximum amount of money that can be charged to your card. If you have a 0% APR on new purchases, you can only spend up to your available credit limit.
Credit limits become particularly important if you plan on completing a balance transfer. Often, credit card issuers set limits on what portion of your credit limit may be utilized by transferring a balance from an existing account.
The terms for the Chase Slate® credit card state: “The total amount of your request(s) including fees and interest charges cannot exceed your available credit or $15,000, whichever is lower.”
That means if you receive a $30,000 credit limit for your new Chase Slate card, you will only be able to transfer up to $15,000 of existing debt to your new account. If your plan was to transfer $20,000 from another balance, you would have to reconsider.
4. There may be a fee for balance transfers
Most balance transfer credit cards charge a balance transfer fee, which is usually 3% per transfer, like with the Citi® Double Cash Card. So if you transfer $5,000, you’ll incur a $150 fee. This fee can be outweighed if the amount you save on interest during the special financing period is more than the 3% fee (and it often is). You may want to also consider no-fee balance transfer credit cards.
5. You might not qualify for a 0% APR card
If you’re looking to open a 0% APR card, check your credit score first. Introductory no-interest credit cards typically require good credit (scores 670 to 739) or excellent credit (scores 740 and greater).
If your score falls in the fair and average credit range (580 to 669) or bad credit range (below 669), you may have trouble qualifying for a 0% APR card. Some cards for people with less than stellar credit may still offer 0% APRs, but the intro period will typically be shorter than cards for good or excellent credit.
If you fall into this category, consider alternative debt-payoff options, such as personal loans, that may have more lenient credit requirements and generally lower interest.
6. Your offer may be canceled
If you fail to make at least the minimum payment on time, you may risk your 0% APR being canceled.
For instance, the terms for the Blue Cash Preferred® Card from American Express state: “Loss of introductory APR: We may end your introductory APR and apply the penalty APR if you do not pay at least the minimum payment due within 60 days after its payment due date.”
7. Any remaining balances will incur interest
If you carry a balance after the intro period ends, it will incur interest at the regular APR. This can counteract any savings you may have received during the interest-free period. As a result, it’s key to pay off your balance in full prior to the 0% APR ending.
8. Some cards charge retroactive interest
While you may see a 0% APR card as a way to finance purchases or debt, there may be increased penalties for carrying a balance after the intro period ends. Some cards (mainly store cards) charge deferred interest (or retroactive interest), which kicks in when you continue to carry a balance after the 0% APR period ends.
With deferred interest, you’ll incur a charge for all the interest you accrued since the date you made your purchase. The surefire way to avoid deferred interest is to have a repayment plan in place that ensures you have no balance left when the intro period ends.
What is a Good Interest Rate on a Credit Card?
A good APR for a credit card is anything below 14% — if you have good credit. If you have excellent credit, you could qualify for an even better rate, like 10%. If you have bad credit, though, the best credit card APR available to you could be above 20%. Even the best secured credit cards for building credit often have a credit card APR starting around 22.99%.
The highest credit card interest rates are usually found on:
- Secured credit cards
- Credit cards for bad credit
- Store credit cards
- Lucrative travel rewards cards
- Cash back credit cards
Those with the lowest APRs tend to be low-interest credit cards and credit cards from credit unions. Some of the best low interest credit cards have a credit card APR range starting at 12% to 14%. Many popular credit unions offer credit cards with interest rates that start at 5.99% to 8% for their most creditworthy members.
For context, the average credit card APR across all credit card types ranges from 15.49% to 22.61% as of June 2020. Credit cards usually offer an APR range, rather than a single across-the-board rate for all transaction types.
A good way to improve your chances of getting approved for a low-interest credit card is to improve your credit score. Only consumers with an excellent credit score qualify for credit cards with the lowest credit card APR.
Even if you get a good APR for a credit card, most credit card interest rates are actually quite high. Credit cards are especially expensive when compared with the average interest rate on a personal loan (which is 9.41%). Still, you should strive for the best credit card APR you can get, particularly if you plan to carry a balance.
To give you a sense of just how much difference a few percentage points can make when it comes to paying off credit card debt, the table below shows you what it looks like to pay off $10,000 of credit card debt in $300 monthly installments with three different interest rates.
| Metric | 18% APR | 14% APR | 10% APR |
|---|---|---|---|
| Time to pay off debt | 3.9 years | 3.6 years | 3.3 years |
| Total interest paid | $3,967 | $2,738 | $1,764 |
| Total amount paid | $13,967 | $12,738 | $11,764 |
As you can see, having an 18% APR instead of a 10% APR tacks on more than seven extra months to your monthly payments and costs you $2,203 more in interest.
There is no one answer to what a good interest rate for a credit card is — it depends largely on your credit score and how you want to use the credit card. However, the national average for a low-interest credit card is sitting at 13.99% at the time of this writing.
What is The Best Credit Card For The Average Person?
Below, we are comparing the best credit cards for the average person
| Best For: | Average Credit Card | Annual Fee |
|---|---|---|
| Building Credit | Capital One Platinum Credit Card | $0 |
| No foreign transaction fee | Avant Credit Card | $59 |
| Walmart purchases | Capital One Walmart Rewards® Mastercard® | $0 |
| Flat-Rate Rewards | Capital One QuicksilverOne Cash Rewards Credit Card | $39 |
| International purchases | Upgrade Visa® Card with Cash Rewards | $0 |
| Fraud Protection | Indigo® Platinum Mastercard® | $0-$99 |
| College Students | Discover it® Student Cash Back | $0 |
| Cash back rewards | Credit One Bank® Platinum Visa® for Rebuilding Credit | $75 for the first year. After that, $99 annually ($8.25 per month) |
| Rebuilding credit | Milestone® Gold Mastercard® | $35-$99 |
| Rewards | Credit One Bank® Platinum Rewards Visa | $95 |
| No Annual Fee | Petal®1 “No Annual Fee” Visa® Credit Card | $0 |
| No Credit History | Chase Freedom® Student credit card | $0 |
What is The Best Low-Interest Credit Card For Bad Credit?
When you have a credit score that’s less than stellar, it can be a challenge to find a credit card you can get approved for. And, if you apply for a card and get rejected, that can further impact your score as each credit inquiry goes on your credit report.
You typically have two options when you have subpar credit and you’re seeking a credit card: A secured card, where you put down a security deposit equal to the line of credit you’re seeking or an unsecured credit card designed for those with poor credit.
If you balk at the idea of putting down a deposit, know that many unsecured cards for people with bad credit often come laden with fees and sky-high APRs. If you go with a secured card, try to choose one that reports to all three credit bureaus so your on-time payments can help build your credit score as quickly as possible.
Whatever you choose, aim to use the new line of credit as a building block towards a stronger credit profile so you can qualify for better cards and rates on your other loans in the future.
1. Discover it® Secured Credit Card
The Discover it® Secured Credit Card comes with a great combination of features for those looking to build their credit. The card comes with no annual fees, no account opening fees and the card earns rewards to boot.
Rewards: Earn 2% cashback at gas stations and restaurants on up to $1,000 in combined purchases each quarter and an unlimited 1% cashback on all other purchases.
Welcome Offer: Intro Offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cashback you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Annual Fee: $0
2. Bank of America® Customized Cash Rewards Secured Credit Card
If your spending centers around typical household categories, the Bank of America Cash Back Secured card offers some of the best rewards potential we’ve seen in a secured credit card. If you can swing the $300 minimum opening deposit, you can build your credit while earning cashback—a win-win for new-to-credit cardholders.
Rewards: Earn 3% cashback in the category of your choice: gas, online shopping, dining, travel, drug stores or home improvement/furnishings, 2% cashback at grocery stores and wholesale clubs and 1% cashback on all other purchases. You’ll earn 3% and 2% cashback on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%.
Welcome Offer: N/A
3. Navy FCU nRewards® Secured Credit Card
The Navy Federal nRewards® Secured card is an excellent option for someone with eligible military affiliation looking to build their credit profile.
Rewards: Earn 1% cashback for every dollar spent.
Welcome Offer: N/A
Annual Fee: $0
4. Petal® 1 “No Annual Fee” Visa® Credit Card
When you’re new to credit, it can be a challenge to qualify for an unsecured credit card. The Petal 1 Card is one of a small handful of cards that may consider applicants with a thin or no credit profile.
Rewards: Earn 2% to 10% cashback at select merchants.
Welcome Offer: N/A
Annual Fee: $0
5. BankAmericard® Secured credit card
There are some secured cards that pack on the fees, but BankAmericard isn’t one of them. If you’re partial to Bank of America but you don’t qualify for an unsecured card with them, the BankAmericard Secured card could be an option.
Rewards: None
Annual Fee: $0
Low Fixed Interest Credit Cards
Discover it® Cash Back: Best for low interest
Why we picked it: The Discover it Cash Back, like several other Discover cards, offers a low regular interest rate of 11.99% to 22.99% variable APR, ideal for the occasional balance.
Pros: The ongoing rewards and the first-year bonus feature are unsurpassed: 5% cashback on rotating quarterly categories (up to $1,500 in combined quarterly purchases in various categories upon activation, then 1%) and Discover will match all the cashback you earn at the end of your first year. Add to that, there is no annual fee.
Cons: Unfortunately, purchase and travel benefits are nonexistent. There’s no traditional sign-up bonus on this card, and instead it matches the cashback you earn in the first year. That means you’ll be waiting a year for that bonus rather than receiving it within the first one to three months as is typical.
Who should apply? With an incredible cashback rate, this low-interest card offers a lot of potential value to those who can make the most of its rotating quarterly bonus categories. You’ll need to have good to excellent credit (670 or higher) in order to be approved.
Navy Federal Credit Union Platinum card: Best low interest credit union card
Why we picked it: With an APR of 5.99% to 18% variable, the Navy Federal Credit Union Platinum card boasts one of the lowest interest rates available. Also worth noting: it charges no annual fee, no foreign transaction fees, no cash advance fees and – a rarity – no balance transfer fees.
Cardmembers enjoy a 12-month 0% introductory APR on balance transfers requested within 30 days of account opening (offer expires June 30, 2021). After that, the 5.99% to 18% APR variable applies.
Pros: Aside from its incredibly low fees, this card includes a range of benefits including collision damage waiver, travel and emergency assistance, cellphone protection and other frills.
Cons: In order to apply, you must first join the Navy Federal Credit Union. That requires that you have military ties through family, are currently in the armed forces or employed by the Department of Defense, or have veteran status. Another potential sticking point: this card is without a rewards program.
Who should apply? Anyone who is eligible to open an account and apply for this card stands to save a ton in fees, particularly if they plan to carry a balance or take advantage of the introductory balance transfer offer.
State Department Federal Credit Union Platinum Rewards Credit Card: Best low interest credit union card with rewards
Why we picked it: Aside from having one of the lowest interest rates at 6.99% to 14.99% variable APR, the SDFCU Platinum Rewards Credit Card offers 1X Flexpoint Rewards on every purchase. Flexpoints are indeed flexible and can be redeemed for travel, gift cards, merchandise as well as charitable donations.
This card requires a State Department Federal Credit Union membership which is limited to employees and on-site contractors of the State Department, those with familial or household ties to a State Department employee, plus an extensive list of State Department organizational affiliations.
Members of the American Consumer Council are also eligible to join, which, for most would-be applicants, is probably the easiest route. This requires you to be an American consumer who currently uses or has purchased a major consumer product or service within three years of submitting an application for membership, plus $8 annually or $15 for a lifetime membership.
Pros: There’s no annual fee, no fee for balance transfers or foreign transactions.
Cons: While its low rates and lack of fees are enticing, the barriers to gaining membership could be a major deterrent for some. Another potential turn-off: the rewards program and ancillary perks can feel a little bare-bones when compared to other cards.
Who should apply? Anyone willing to jump through the hoops of eligibility can save a lot of money in fees, particularly frequent travelers or someone considering a balance transfer.
Air Force Federal Credit Union Visa® Platinum credit card: Best low interest credit union card
Why we picked it: The Air Force Federal Credit Union Visa® Platinum credit card offers a very low interest rate of 7.75% to 14.75% variable and charges no annual fee.
Pros: The balance transfer fees aren’t quite as good as, say, the Navy Federal Credit Union Platinum card, but 2% (or $2, whichever is greater) is better than what’s offered by most cards on the market.
Cons: Eligibility is awfully narrow. Membership to the credit union is open to those affiliated with the armed forces, be it through family or past service. Another potential path: you live in, conduct business in, or worship in Bexar County, Texas or Clay, Lowndes, or Oktibbeha counties in Mississippi. Employment at certain companies, volunteer work, and membership at certain churches could also get you in.
Who should apply? If you happen to meet the membership requirements, this card could save the right person a fair amount in interest and fees.
No Interest Credit Cards For 24 Months
No, there aren’t any no-interest credit cards for 24 months right now. The closest you’ll find is 0% interest for 20 billing cycles on both purchases and balance transfers from the U.S. Bank Visa® Platinum Card.
A 0% credit card works just like any other credit card except that for a certain period of time after you open your account, the bank doesn’t charge any interest on your balance. You’re still responsible for paying at least the minimum amount due each month.
(And be sure you do: If you don’t, the issuer might cancel your 0% period.) Once the introductory 0% period ends, your APR rises to the ongoing rate, and you will be charged interest on your balance going forward.
Low-Interest Credit Cards For Excellent Credit
An excellent credit score opens up opportunities to qualify for some of the best credit cards available from our partners. With a FICO Score above 800, you could get a top-of-the line credit card that offers generous rewards programs, lavish perks, low-interest rates and more.
| Card Name | Best for | Bankrate Review Score |
|---|---|---|
| Blue Cash Preferred® Card from American Express | Overall cash back for families | 4.0 / 5 |
| Citi® Double Cash Card | Up to 2% cash back | 3.6 / 5 |
| Chase Freedom Unlimited® | Cash back in multiple categories | 4.6 / 5 |
| Discover it® Cash Back | Rotating cash back categories | 4.2 / 5 |
| Blue Cash Everyday® Card from American Express | Families with no annual fee | 3.9 / 5 |
| Capital One Quicksilver Cash Rewards Credit Card | Simple cash back | 3.2 / 5 |
| Capital One SavorOne Cash Rewards Credit Card | Dining and entertainment | 4.5 / 5 |
| Capital One VentureOne Rewards Credit Card | Flexible travel rewards | 3.6 / 5 |
| Discover it® chrome | First-year bonus | 3.9 / 5 |
| Citi Rewards+® Card | Rewards on small purchases | 3.2 / 5 |
18 Months no Interest Credit Card
A 0% APR credit card with an introductory offer on purchases, balance transfers or both can help you temporarily avoid interest charges and potentially save hundreds of dollars. On this page, you can compare the best 0% APR credit cards available from our partners and get expert advice on how to manage debt responsibly.
| Card name | Intro purchase offer | Intro balance transfer offer | Regular APR (variable) |
|---|---|---|---|
| Citi Custom Cash℠ Card | 15 months | 15 months | 13.99% – 23.99% variable |
| Citi® Diamond Preferred® Card | 18 months | 18 months | 13.74% – 23.74% |
| U.S. Bank Visa® Platinum Card | 20 billing cycles | 20 billing cycles | 14.49% – 24.49% |
| Wells Fargo Active Cash℠ Card | 15 months from account opening | 15 months (on qualifying transfers) | 14.99% – 24.99% |
| Wells Fargo Platinum card | 18 months from account opening | 18 months (on qualifying) | 16.49% – 24.49% |
| Discover it® Cash Back | 14 months | 14 months | 11.99% – 22.99% |
| Capital One SavorOne Cash Rewards Credit Card | 15 months | N/A | 14.99% – 24.99% |
| Capital One Quicksilver Cash Rewards Credit Card | 15 months | N/A | 14.99% – 24.99% |
| Bank of America® Customized Cash Rewards credit card | 0% intro APR on purchases for 15 billing cycles | 0% intro APR for 15 billing cycles for any balance transfers made in the first 60 days | 13.99% – 23.99% |
| Citi Simplicity® Card | 18 months | 18 months | 14.74% – 24.74% |
| Blue Cash Everyday® Card from American Express | 0% intro APR for 15 months | N/A | 13.99% – 23.99% |
| Bank of America® Unlimited Cash Rewards credit card | 15 billing cycles | 15 billing cycles for any transfers made within the first 60 days | 13.99% – 23.99% |
| BankAmericard® credit card | 0% intro APR on purchases for 18 billing cycles | 0% intro APR for 18 billing cycles for any balance transfers made in the first 60 days | 12.99% – 22.99% |
Low Rate Credit Cards For Life
1. U.S. Bank Visa® Platinum Card
- 0% Intro APR on purchases and balance transfers for 20 billing cycles. After that, a variable APR currently 14.49% – 24.49%.
- Great offer from U.S. Bank, a 2021 World’s Most Ethical Company® – Ethisphere Institute, February 2021.
- No Annual Fee*
- Flexibility to choose a payment due date that fits your schedule.
- Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your U.S.Bank Visa® Platinum Credit Card. Certain terms, conditions, and exclusions apply.
2. Banc of California Mastercard® Platinum Card
- Pay down your other credit card balances faster with a great low introductory rate for an extended time
- No annual fee
- Introductory 0.00% APR for the first 20 billing cycles on purchases and balance transfers.
3. Bank of Oklahoma Platinum Visa® Credit Card
- With the Platinum Card, you can enjoy the everyday convenience of a non-rewards card while saving on interest and paying down your other credit card balances faster.
- Consumer Credit cards also come with a variety of important features, including: extended warranty coverage, auto rental collision damage waiver coverage and zero fraud liability.
- Introductory 0.00% APR for the first 20 billing cycles on purchases and balance transfers.
4. Community Banks of Colorado Platinum Visa® Credit Card
- Annual Fee: $0
- Regular APR: 13.49% – 23.49% Variable APR
- Intro APR: 0% on Purchases and Balance Transfers for 20 billing cycles
- Balance Transfer Fee: 3%
5. Farmers National Bank Platinum Visa® Credit Card
- Consumer Credit cards also come with a variety of important features, including: extended warranty coverage, auto rental collision damage waiver coverage and zero fraud liability.
- Introductory 0.00% APR for the first 20 billing cycles on purchases and balance transfers.
- After that, a variable APR, currently 13.49% to 23.49%.
- No annual fee
Low-Interest Credit Cards For First-Timers
In the event you don’t have much of a credit history yet, shopping for cards can be frustrating. You find a great credit card, only to be declined. If the most rewarding credit cards are still out of reach, there are still very good credit cards designed for consumers with average or limited credit.
| Card | Best for: | Credit Score Required |
|---|---|---|
| Chase Sapphire Preferred® Card | Premium Travel Rewards | Excellent |
| Discover It® Cash Back | Cash Back | |
| Ink Business Cash® Credit Card | Entrepreneurs | |
| Chase Freedom Unlimited® | Everyday Purchases Rewards | |
| Citi® Double Cash Card – 18 month BT offer | Balance Transfers + Cash Back | Good/Excellent |
| Capital One QuicksilverOne Cash Rewards Credit Card | Cash Back | Average/fair/limited (600 – 699) |
| Capital One Platinum Credit Card | No Annual Fee | |
| Chase Freedom® Student credit card | Students | |
| Petal® 1 “No Annual Fee” Visa® Credit Card | Building credit while earning rewards | Poor (300 – 599) |
| Credit One Bank® Unsecured Visa with Cash Back Rewards | Cash Back—No Security Deposit | |
| Platinum Secured Credit Card from Capital One | First Credit Card—Credit Builder |
Low-Interest Credit Cards For Fair Credit
A fair credit score (580 to 669) might not get you a top-rated credit card, but you still have a lot of solid options to choose from. We’ve chosen the best credit cards for fair credit and average credit available.
| Card Name | Best for | Annual Fee | Bankrate Review Score |
|---|---|---|---|
| Capital One Platinum Credit Card | No annual fee | $0 | 3.7 / 5 |
| Capital One QuicksilverOne Cash Rewards Credit Card | Flat-rate cash back | $39 | 3.4 / 5 |
| Discover it® Student Cash Back | Rotating cash back bonus categories | $0 | 4.1 / 5 |
| Indigo® Platinum Mastercard® | Bankruptcy forgiveness | $0-$99 | 2.6 / 5 |
| Upgrade Visa® Card with Cash Rewards | Low interest and low cost | $0 | 3.1 / 5 |
| Avant Credit Card | No penalty APR | $59 | 3.2 / 5 |
| Milestone® Gold Mastercard® | Fraud protection | $35-$99 | 2.7 / 5 |
| Credit One Bank® Platinum Visa® for Rebuilding Credit | Rebuilding credit | $75 first year, then $99 ($8.25 per month) | 2.6 / 5 |
Chase Credit Card Interest Rate
Chase offers highly rated credit cards for travel, cash back, business and more. A good or excellent credit score is typically required, but Chase in turn provides cardholders with generous rewards programs and sign-up bonuses along with easy redemption options.
| Card Name | Best For | Bankrate Review Score |
|---|---|---|
| Chase Sapphire Preferred® Card | All-around travel | 4.1 / 5 |
| Chase Freedom Unlimited® | Flat-rate cash back | 4.6 / 5 |
| Ink Business Preferred® Credit Card | Business travel | 3.8 / 5 |
| Ink Business Cash® Credit Card | Everyday business purchases | 4.1 / 5 |
| Ink Business Unlimited® Credit Card | Small business owners | 3.9 / 5 |
| Chase Freedom® Student credit card | Students | 3.5 / 5 |
| Chase Freedom Flex℠ | Cash back in multiple categories | 4.0 / 5 |
| Chase Sapphire Reserve® | Luxury travel | 4.5 / 5 |
| Southwest Rapid Rewards® Plus Credit Card | Best Southwest starter card | 3.7 / 5 |
| Southwest Rapid Rewards® Premier Credit Card | Best Southwest value card | 3.7 / 5 |
| Southwest Rapid Rewards® Priority Credit Card | Best overall Southwest card | 3.6 / 5 |
0% Interest Credit Cards Balance Transfer
A balance transfer involves moving debt from a high-interest credit card to a new card with a lower interest rate, ideally one with an introductory 0% period. Essentially, you’re using one card to pay off another, but because you aren’t paying as much in interest, you have more money available to pay down your debt more quickly.
Citi Simplicity® Card
Our pick for: Long 0% period + no late fees
The Citi Simplicity® Card has a solid introductory 0% APR period for both balance transfers and purchases. It doesn’t charge an annual fee, late fees or penalty APRs either.
U.S. Bank Visa® Platinum Card
Our pick for: Longest 0% period for transfers and purchases
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A lengthy 0% introductory APR period for both purchases and balance transfers has made the U.S. Bank Visa® Platinum Card a NerdWallet favorite.
Bank of America® Unlimited Cash Rewards credit card
Our pick for: Long-term value: 0% periods for transfers and purchases + flat-rate rewards
The Bank of America® Unlimited Cash Rewards credit card is one of many 1.5% flat-rate cash-back cards on the market. It comes with a decent sign-up bonus, a generous intro APR period, and the potential to supercharge your earnings through Bank of America®’s Preferred Rewards program.
Citi® Diamond Preferred® Card
Our pick for: Long 0% period for transfers and purchases
The Citi® Diamond Preferred® Card offers a 0% introductory APR period on balance transfers and new purchases for 18 months. It doesn’t have the late-fee forgiveness of Citi’s other balance-transfer card, but it’s still a great option.
Citi Custom Cash℠ Card
Our pick for: Long-term value: 0% periods for transfers and purchases + bonus cash back
The Citi Custom Cash℠ Card offers a lot of value for a $0 annual fee: 5% back automatically in your eligible top spending category on up to $500 spent per billing cycle (1% back elsewhere). The list of eligible 5% categories is varied and includes biggies like restaurants, grocery stores and more. And unlike competitors, there’s no activation schedule or bonus calendar to keep track of.
Wells Fargo Active Cash℠ Card
Our pick for: Long-term value: 0% periods for transfers and purchases + high ongoing rewards
Among flat-rate cash-back cards, you’ll be hard-pressed to beat the Wells Fargo Active Cash℠ Card. It earns an unlimited 2% back on all purchases, which is excellent. But in addition, the card offers a rich sign-up bonus and a generous 0% intro APR on both purchases and balance transfers. That’s an impressive, hard-to-find combination of features on a card with a $0 annual fee.
Wells Fargo Platinum card
Our pick for: Long 0% period for transfers and purchases
The Wells Fargo Platinum card is pretty bare bones — but they’re good bones. You get a nice, long introductory 0% APR period on both purchases and balance transfers, plus no annual fee. There are no rewards, but you get automatic cell phone protection when you pay your wireless bill with the card, so there’s a great reason to hold onto it long-term.
BankAmericard® credit card
Our pick for: Long 0% period for transfers and purchases
The BankAmericard® credit card isn’t flashy, nor does it aim to be. You get a decent 0% introductory APR period to whittle down debt or finance a large purchase. And that’s about it.
HSBC Gold Mastercard® credit card
Our pick for: Long 0% period for transfers and purchases + late fee waiver
How does the HSBC Gold Mastercard® credit card set itself apart from competing cards that have a similar introductory 0% APR periods? By offering a little forgiveness: It waives the fee on a late payment if you haven’t been late in the preceding year.
Discover it® Balance Transfer
Our pick for: Long-term value: 0% periods for transfers and purchases + bonus cash back
What makes the Discover it® Balance Transfer stand out from other balance-transfer cards is its ongoing cash-back rewards, which give you a great reason to keep using the card regularly even after its introductory 0% APR period ends.
Citi® Double Cash Card – 18 month BT offer
Our pick for: Long-term value: 0% period for transfers + rewards
Year after year, the Citi® Double Cash Card – 18 month BT offer has been our choice for the best flat-rate cash-back card. You earn 2% cash back on every purchase — 1% when you buy something and 1% when you pay it off. There’s no 0% intro period for purchases and no sign-up bonus, but the high rewards rate more than makes up for the lack of bells and whistles.
Citi Rewards+® Card
Our pick for: 0% period + ’rounded-up’ rewards
The Citi Rewards+® Card might not be right for everyone, but its unique rounding-up feature means that every purchase will earn at least 10 points. The card offers bonus rewards at gas stations and supermarkets and has no annual fee. And the 0% intro APR period shouldn’t be overlooked.
SunTrust Prime Rewards Credit Card
Our pick for: Low rate for an extended period
You won’t get a 0% period with the SunTrust Prime Rewards Credit Card, but you’ll get an astonishing three years at a super-low rate, and you can avoid paying a transfer fee. The big catch? Not everyone can apply. It also offers modest rewards, so it has some value after the promo interest period runs out.
Summary
Credit card issuers are allowed to charge whatever interest rate they want; they only have to disclose the rate in the card’s terms and conditions. You should always make sure you know the interest rate range of the card you apply for, and when you receive the card, check the rate you were approved for.
