Low Interest Credit Cards

All information about the American Express Cash Magnet® Card has been collected independently by CreditCards.com. The issuer did not provide the content, nor is it responsible for its accuracy. The American Express Cash Magnet Card is no longer available through CreditCards.com.

Your guide to choosing the best low interest credit card

Low interest credit cards carry purchase, balance transfer or other annual percentage rates that fall below the current industry standard. As such, they are a good option for revolvers — that is, cardholders who are known to carry a balance from month to month.

We crunched the numbers on more than 800 credit cards to determine the best credit cards with low interest rates, and also included information on how to best utilize these cards. Whether you want to understand the mechanics of our best low interest cards or the difference between interest and APR, we can help. Here, we look at:

• Best low interest credit cards
• Summary of low APR card offers
• Research methodology
• What is a low interest credit card?
• Which is best: low interest, balance transfer or 0% intro APR purchase credit card?
• How to save money with a low interest credit card
• Why you should avoid keeping a balance on your credit card

Best low interest credit card details

Best for low interest: Discover it® Cash Back

Overview: The Discover it Cash Back, like several other Discover cards, offers a low regular interest rate of 11.99%-22.99% variable APR, ideal for the occasional balance.

Pros: The ongoing rewards and the first-year bonus feature are unsurpassed: 5% cash back on rotating quarterly categories (up to $1,500 in quarterly purchases in various categories upon activation, then 1%) and Discover will match all the cash back you earn at the end of your first year. Add to that, there is no annual fee.

Cons: Unfortunately, there’s no traditional sign-up bonus on this card, and the purchase and travel benefits are nonexistent.

Best for cash back: Citi® Double Cash Card

Overview: The Citi Double Cash Card possesses one of the longest balance transfer intro APR offers, with 0% for 18 months, then 13.99%-23.99% variable after that. This means balance transfers at 0% can be carried into 2022.

Pros: The Double Cash’s ongoing rewards of 1% cash back when you spend, then another 1% as you pay for the purchase make it top-of-line among flat-rate cash back cards.

Cons: As superior as the Citi Double Cash’s rewards are, its lack of a 0% intro APR on purchases may give you pause. Also, there’s no sign-up bonus.

Best for 0% intro APR: Blue Cash Everyday® Card from American Express

Overview: The Blue Cash Everyday offers a 0% intro APR for a lengthy 15 months on purchases. It’s 13.99%-23.99% variable after that. The ongoing rewards rate is great, especially for a no annual fee card.

Pros: With the Everyday, you can earn 3% cash back at U.S. supermarkets (up to $6,000 annually, then 1%), 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on general purchases.

Cons: The Blue Cash Preferred® Card from American Express does have a higher rewards rate, but only for those who are willing to pay an annual fee after the first year.

Best for everyday purchases: Citi Rewards+® Card

Overview: Cardholders get a 0% introductory APR on purchases and balance transfers for 15 months. After that, the card’s APR is 13.49% to 23.49% variable. There’s no annual fee.

Pros: The Citi Rewards+® offers something unique: Not only will you earn 2X ThankYou points at supermarkets and gas stations (on up to $6,000 per year in purchases, then 1 point per dollar) as well as 1X points on all other purchases, but every purchase you make will be rounded up to the nearest 10 points. This feature helps you get more rewards out of every purchase, no matter how small.

Cons: One potential downfall lies in its redemption options: If you want to get the most value out of your rewards, you’ll have to redeem your points for travel purchases, which can only be booked through the ThankYou Travel Portal, or gift cards.

Best for airline miles: Discover it® Miles

Overview: You can temporarily avoid interest on new purchases, thanks to this card’s 14-month 0% introductory APR offer on purchases (11.99%-22.99% variable APR after). If you’re planning overseas travel, you’ll appreciate the lack of foreign transaction fees, too.

Pros: This Discover travel card earns 1.5 miles per dollar on all purchases, and Discover will match the miles you’ve earned at the end of your first year – all without an annual fee.

Cons: There are two potential drawbacks: Miles can’t be transferred to frequent flyer loyalty programs, and there are no annual bonuses beyond the first year miles Match.

Best for no fees: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Overview: The Petal 2’s lack of fees makes it a fine option for the cardholder looking for a low interest card: There’s no annual fee, no foreign transaction fee and no late fee.

Pros: You’ll earn 1% cash back during your first year with this card, then up to 1.5% cash back after 12 on-time monthly payments, which makes it competitive with the Capital One Quicksilver Cash Rewards Credit Card.

Cons: Keep in mind that, although the low end of the regular APR range is good, it can also be quite high at 12.99%-26.99% variable.

Best for balance transfers: Citi® Diamond Preferred® Card

Overview: It offers one of the longest promotional APR periods on balance transfers currently available: You’ll get a whopping 18 months to tackle your transferred balance without paying interest on transfers completed within the first 4 months (the card’s APR is 14.74%-24.74% variable after that).

Pros: While there’s no base rewards program, the card does tout some of the benefits associated with popular Citi credit cards, including Citi Easy Deals and Citi Flex Plan.

Cons: The card does charge a balance transfer fee of 3% (or $5, whichever is higher). You can save a significant amount if you opt instead for a balance transfer card that charges no balance transfer fee at all.

Best for managing payments: Upgrade Visa® Card with Cash Rewards

Overview: This card has a special feature designed to help with making regular, on-time payments. Your balance is automatically put into an installment plan with a fixed monthly payment so that you know exactly how much you’re paying. With a regular APR of 8.99%-29.99%, cardholders who qualify for the low end may see some benefit.

Pros: Additionally, there are no fees of any kind, and you’ll earn 1.5% cash back on your purchases when you make a payment.

Cons: This card does not offer an introductory 0% interest window and does not allow for balance transfers, making it a less-than-stellar option for those looking to manage debt from an existing credit account.

Best for flexible cash back categories: Bank of America® Customized Cash Rewards credit card

Overview: Along with top-tier rewards, this card offers an introductory 15 billing cycle 0% interest period for both balance transfers made within the first 60 days and purchases (13.99%-23.99% variable APR after).

Pros: This card offers cash back rewards that are almost guaranteed to fit your spending: Earn 3% cash back in a category of your choice (gas, dining, travel, drug stores, online shopping or home improvements and furnishings), 2% back at grocery stores and wholesale clubs – with a $2,500 combined spending limit on 2% and 3% categories each quarter – and 1% cash back on all other purchases.

Cons: A 3% fee (minimum $10) applies to all balance transfers.

Summary of the best low APR credit cards of 2021

Research methodology: How we chose the best low interest credit cards

It’s no surprise that when deciding the best low interest credit cards, we chose cards with low APRs. We also took the length of the introductory period into account, since a longer 0% APR period may reduce the total amount of interest accrued on a large purchase.

Number of low interest cards we analyzed: 869

Criteria used: Regular APR, intro APR, other rates and fees, rewards rates, rewards categories, redemption options, miscellaneous features and benefits, customer service, security, credit needed, ease of application

What is a low interest credit card?

Low interest credit cards can be cards with introductory offers for purchases and balance transfers, usually 0% interest for a certain amount of time, or they can be simply a card with a low ongoing interest rate.

If you pay your credit card balance in full, your interest rate doesn’t matter much because you won’t be charged any interest. But if you sometimes carry a balance from month to month or if you want to do a balance transfer from another credit card, a low interest rate can save you thousands in the long run.

What is credit card interest?

Credit card interest is the amount that you are charged when you don’t pay your credit card balance in full at the end of each month. Your interest rate will be stated as an APR, or “annual percentage rate.” This is the yearly cost of borrowing money and consists of your interest, fees, and other charges represented as a percentage amount. The amount that you pay in interest each month can vary based on things like creditworthiness and the type of credit account that you have. In general, a better credit score means a better interest rate.

To help alleviate the problems interest can create, low interest credit cards can come with intro offers for purchases, balance transfers, or both, usually at 0%, or they can be simply a card with a low regular interest rate, as in the case of some of the Discover cards.

What is the average interest rate on a credit card?

Typically, a low interest rate is considered a figure that is below the national average. Currently, the national average interest rate for credit cards is 16.12%, well below the average for the last three years. When the Federal Reserve dropped interest rates in March 2020, many lenders cut interest rates on new credit cards. This sudden rate change could be beneficial to those who have an outstanding credit card balance (but you may need to ask for a lower rate) or are interested in a card with a lower interest rate.

Average credit card interest rates…

• Low interest
• 12.90%
• National average
• 16.12%
• Bad credit
• 25.30%
• Source: CreditCards.com Weekly Rate Report

Types of APRs

Here are the typical APRs charged by card issuers:

• APR for purchases. The most common APR, this rate is applied when you carry a balance. For example, if you charged $500 to your card in one month and only made the $25 minimum payment. Some cards, such as The Amex EveryDay® Credit Card from American Express, offer a 0% intro purchase offer for a set time, allowing you to carry a balance without accruing interest. In the case of the EveryDay, the balance is charged the regular variable rate of 12.99%-23.99% after 15 months.
• APR for balance transfers. Similar to the purchase APR, balance transfer cards will usually offer a 0% intro APR for a set amount of time, then revert to the regular variable rate. These often include a balance transfer fee.
• Cash advance APR. Being able to withdraw cash using your credit line is convenient in a pinch, but it triggers an interest rate that’s usually higher than the ongoing APR.
• Penalty APR. This is typically a considerably higher interest rate that’s triggered when you violate issuer terms – usually for late monthly payments. After 6 consecutive on-time payments, the issuer may lower your rate again. Some cards, like Discover products, don’t carry this type of APR.

All information about the Amex EveryDay Credit Card from American Express has been collected independently by CreditCards.com. The issuer did not provide the content, nor is it responsible for its accuracy.

Want to learn more? Click here to learn more about credit card APRs.

How to save money with a low interest credit card

A high interest rate is one of the biggest culprits in attaining card debt. If you owe $3,000 and you are paying a rate of 16.5% APR, then it would take you 45 months to pay the minimum amount, and you would end up paying $1,041 in interest alone. Low interest cards can help lessen the extremes and avoid fighting an uphill battle.

How can I avoid paying interest on a credit card?

To avoid that debt, the best thing you can do is to pay in full each month. Also, avoid putting charges on your card that you can’t pay in full by the due date. Want that big-screen TV but don’t have the cash? Start setting aside the money rather than paying with your card without a plan.

If you’re already stuck in debt, you can avoid paying some interest by paying more than the minimum amount. Remember that $3,000 at a 16.5% rate, in which you end up with more than $2,000 in interest charges because you paid the minimum? Well, if you paid $200 a month, those interest charges would drop to $383.

If you pay more than the minimum…

Another way to save money on interest is to transfer an existing balance to a balance transfer card or a low interest card.

With a lower interest rate, and even better, 0% intro APR, you can pay off that card debt at a faster rate. Also, you save hundreds of dollars in interest charges.

How to lower your credit card APR

If your current cards tout high APRs, there are some ways to score more favorable terms and conditions. You could potentially lower your credit card interest rates via the following strategies:

• Negotiate with your current issuer. Call your issuer directly to see if they’ll consider lowering your credit card APRs. If your account is in good standing and your credit is in good shape, they just might oblige.
• Apply for a new credit card. Credit card offers change frequently and there is a chance you can qualify for a new card advertising lower interest rates. You may be able to apply this rate to an existing balance by applying for and conducting a balance transfer. Learn how balance transfers work.
• Improve your credit. Better credit can net you better credit card offers, so check your credit reports to see where you stand before calling your issuer or applying for a new card. You can currently check your credit reports for free each week via AnnualCreditReport.com. If your credit is less than stellar, you could improve your standing by making all your loan and credit card payments on-time, keeping your debt levels low and limiting new credit inquiries. Learn more about how to improve your credit score.

Which is best: Low interest, balance transfer or 0% intro APR purchase credit card?

As we mentioned earlier, there are several different types of credit card APRs — and, as such, there are a few different types of low interest credit cards. Each one serves a slightly different purpose. Depending on the type of cardholder you are, there may be a clear-cut best choice.

• Low interest credit cards generally focus on providing a lower ongoing APR, so if you’re known to carry a balance on occasion, this type of credit card might be the best option for you.
• Zero interest credit cards don’t tack on interest charges for a set period. They’re a good option for you’re looking to make a large purchase that you’ll need more than one billing cycle to cover in full.
• Balance transfer credit cards are designed to help move credit card debt. Used correctly, they could help you pay down existing balances more quickly and save you hundreds of dollars in interest. Learn more about the best balance transfer credit cards.

The best credit card for you will vary, depending on your financial goals. Be sure to evaluate all card offers holistically before applying. Other important factors to consider include fees, penalty APRs, rewards and ancillary services.

The best credit cards for low interest seekers

The credit-builder: If you’re starting from a healthy financial situation, but still are looking to improve your credit score, a low interest card or 0% intro APR purchase card may be the choice for you. These cards often come with features designed to boost your credit, plus any early mistakes made will be softened thanks to the lower APR.

The traveler: Credit score permitting, those looking to take advantage of their card’s reward system to earn free flights, hotels and similar benefits should look toward travel credit cards. Another savvy saving option: Strategizing with a card offering a 0% intro APR on purchases is the perfect opportunity to pay for a trip upfront and cut away at the balance over time.

The debt-holder: For those with credit card debt or any other outstanding movable balance, a balance transfer card can be a no-brainer. By moving debt to an interest-free account, you can declutter your financial situation and make right of past mishaps. This can provide huge savings by avoiding ongoing charges on your debt, likely more useful than earning rewards or a low ongoing APR.

The renovator: Anyone with plans to upgrade their home or yard may want to explore their credit card options and take note of any welcome offers ahead of time. A zero interest card giving freedom on purchases will allow you to buy expensive items interest-free, so you can plan to pay off their cost over the time of the offer. Plus, some options will reward you with cash back or points for your early spending.

The consistent cardholder: You don’t have any transferable debt, and you’re not planning on making a large purchase anytime soon. As long as you pay your balance on time and in full, a low interest card is likely the best choice for you. That way, you won’t have to worry about interest charges and you may even get some extra benefit out of your card by foregoing intro APR offers.

Still unsure of where you stand? Let’s look at some key components of finding the right card:

Factors to consider for low interest credit cards

• What is your credit score? Our top low interest cards require good or excellent credit, and it’s important to apply for a card that matches your credit. If you don’t have good credit, a low interest card is probably not a good option.
• How does the regular APR compare to other cards? If you plan to carry a balance month to month, note the regular APR. Some, such as the Discover it Cash Back (11.99%-22.99% variable), start with a super low APR.
• Are you interested in rewards? Most of our top low interest credit cards offer travel or cash back rewards.
• What is the annual fee? The bulk of our low interest cards offer no annual fee, but some have an annual fee that may actually be worth your while because of the rewards offered.
• What’s next for you? Think about your finances in the upcoming months. If you’re looking to cut down on debt or know you have a large purchase to make, it’s easier to get a sense of direction on the type of card to get.

Comparing two low interest card offers

Here we look at a side-by-side comparison of two low interest cards with the features listed above. As you can see, the cards’ APR rates and annual fees are comparable:

Card:	Discover it Cash Back	American Express Cash Magnet® Card
Credit Recommended:	Good – Excellent	Good – Excellent
0% intro APR period – Purchases:	14 months	15 months
0% intro APR – Balance transfer:	14 months	N/A
Regular APR:	11.99%-22.99% (Variable)	13.99%-23.99% (Variable)
Annual fee:	$0	$0
Rewards rate:	5% on rotating categories each quarter*	1.5% unlimited cash back on purchases

*On up to $1,500 in combined purchases each quarter after enrollment, then 1%

Additional Resources

With our picks for the best low interest credit cards on this page, we cover a unique selection of credit cards with low regular interest rates. We have also curated and compiled a list of the best credit cards with long 0% APR offers and for balance transfers specifically — check them out:

• Best 0 APR Credit Cards of 2021
• Best Balance Transfer Credit Cards of 2021

You can read some individual reviews for low interest credit cards in our reviews section. You can use these to get a better idea of how products compare to one another and decide which offer is the best for your needs.

About the Author

Jeanine Skowronski

Jeanine Skowronski is a credit card expert, analyst, and multimedia journalist with over 10 years of experience covering business and personal finance. She has previously served as the Head of Content at Policygenius, Executive Editor of Credit.com, Deputy Editor at American Banker, Staff Reporter at TheStreet and a columnist for Inc. Magazine. Her work has also been featured in The Wall Street Journal, Fox Business, Business Insider, U.S. News & World Report and more.

About the Editor

Laura Mohammad

CreditCards.com Senior Editor Laura Mohammad writes, edits and coaches extensively on all things credit cards and works to bring you the most up-to-date analysis and advice. In Laura's 20+ years as a financial and personal finance journalist, her work has appeared in such publications and websites as The New York Times, The Associated Press, StreetAuthority.com and American City Business Journals. You can reach Laura at laura.mohammad@creditcards.com.

About the Reviewer

Poonkulali Thangavelu

Creditcards.com Senior Writer Poonkulali Thangavelu is a highly accredited journalist specializing in using credit cards wisely and other personal finance and business topics. Her work has been syndicated by Fidelity, MSN, Nasdaq, Yahoo and others.