Low Interest Credit Cards

A low interest credit card makes large balances a little more manageable. If you carry a balance from one month to another, a low APR credit card could be a good choice for you. Browse the best low interest offers from our partners and compare introductory rates, ongoing rates, annual fees, and rewards to find the right card for you.

A low interest credit card makes large balances a little more manageable. If you carry a balance from one month to another, a low APR credit card could be a good choice for you. Browse the best low interest offers from our partners and compare introductory rates, ongoing rates, annual fees, and rewards to find the right card for you.

Summary

Best low interest credit cards of 2020:

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

1.25X
Earn unlimited 1.25X miles on every purchase, every day.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
N/A
Regular APR
14.49% - 24.49% variable

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

5%
Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate.
1%
Earn 1% unlimited cash back on all other purchases – automatically.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% for 18 months
Regular APR
13.49% - 24.49% variable

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

1.5%
Earn unlimited 1.5% cash back on every purchase, every day

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% intro on balance transfers for 15 months
Regular APR
15.49% - 25.49% variable
See Rates & Fees, Terms Apply

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

3%
3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
2%
2% Cash Back at U.S. gas stations and at select U.S. department stores.
1%
1% back on other purchases

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% on balance transfers for 15 months
Regular APR
14.49% - 25.49% variable
See Rates & Fees, Terms Apply

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

1.5%
Unlimited 1.5% Cash Back on your purchases.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% on balance transfers for 15 months
Regular APR
14.49% - 25.49% variable

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

1.8%
Enjoy 1.8% cash rewards on qualified digital wallet purchases, like Apple Pay® or Google Pay™, during the first 12 months from account opening
1.5%
Earn unlimited 1.5% cash rewards on purchases

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% for 15 months on qualifying balance transfers
Regular APR
15.49% - 27.49% variable

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% Intro APR for 18 billing cycles for any balance transfers made in the first 60 days
Regular APR
14.49% - 24.49% Variable APR on purchases and balance transfers

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

3X
Earn 3X points on eating out and ordering in
3X
Earn 3X points on travel including flights, hotels, homestays and car rentals
3X
Earn 3X points on gas stations, rideshares and transit
3X
Earn 3X points on popular streaming services
1X
Earn 1X points on other purchases

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% for 12 months on qualifying balance transfers
Regular APR
15.49% - 27.49% variable

Good to Excellent

Credit Recommended (670-850)

Apply Now

Rewards Rate

2%
Earn cash back twice. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% intro for 18 months on Balance Transfers
Regular APR
15.49% - 25.49% (Variable)

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Editorial disclosure: All reviews are prepared by CreditCards.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank's website for the most current information.


Comparing Low Interest Credit Card Offers

Updated: January 20, 2020

Although it’s usually best to pay off the balance each month, sometimes that isn’t possible. That’s where low interest cards come in. If you want to look at how interest rates work on credit cards, look no further. 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:

Wondering if you qualify? Want to understand how your score affects your interest rates? We look at that and more.


Best Low Interest Credit Cards

best low interest credit cards of 2020

Discover it® Cash Back

Why this card is the best credit card for low interest

The Discover it Cash Back, like several other Discover cards, offers a super-low regular interest rate of 13.49%-24.49% variable APR, ideal for the occasional balance.

Pros

The ongoing rewards and the first-year bonus feature are unsurpassed. Add to that, there is no annual fee.

Cons

There’s no sign-up bonus on this card, and the purchase and travel benefits are nonexistent.

Capital One® VentureOne® Rewards Credit Card

Why this card is the best low interest credit card for low fees

Not only does this card offer no annual fee, there is also no foreign transaction fee, ideal for international travel.

Pros

If you are looking for a starter travel rewards card, the VentureOne is a good one to pick. In addition, its sign-up bonus and ongoing rewards are just right for the occasional traveler.

Cons

While the Capital One VentureOne carries a 0% intro APR on purchases for 12 months then 14.49% - 24.49% (Variable), no such luck with balance transfers, making it an unfortunate choice if you want to pay off another card’s balance over time with no interest charges.

Discover it® Balance Transfer

Why this card is the best low interest credit card for first-year bonus

With the Discover it Balance Transfer, earn 5% cash back on up to $1,500 a quarter after signing up for the rotating categories (then 1%), then earn double that amount at the end of your first year.

Pros

The Discover it Balance Transfer not only has the same great rewards of the Discover it Cash Back, it also has a robust 0% intro APR on balance transfers of 18 months (it’s 13.49%-24.49% variable after that).

Cons

The 0% intro APR offer on purchases is rock-bottom in length at only 6 months, and like the Discover it Cash Back, the travel and purchase benefits are nowhere to be seen.

Capital One® Quicksilver® Cash Rewards Credit Card

Why this card is the best low interest credit card for low balance transfer fee

Earn 0% intro APR for 15 months on not only purchases but also balance transfers (it’s 15.49%-25.49% variable after that) with the Quicksilver.

Pros

The Capital One Quicksilver does double duty as both a rewards card and a 0% intro APR card, making it a good option for the long haul.

Cons

While this card’s regular APR starts out below the national average, it’s not by much. Once the 0% intro APR offer ends after the first 15 months, the rate is 15.49%-25.49% variable. The Discover cards are much better in this realm.

American Express Cash Magnet® Card

Why this card is the best low interest credit card for no annual fee

With its rewards, low introductory interest offer on balance transfers and purchases, as well as a low regular low interest offer, it’s rather remarkable that the Cash Magnet has no annual fee.

Pros

Like the Blue Cash Everyday, the regular variable APR starts out low at 14.49%-25.49%. Also, the 1.5% back on purchases is quite convenient.

Cons

If you want to maximize your rewards depending on the purchase, another card may be a better choice due to this card’s flat rate offer.

Blue Cash Everyday® Card from American Express

Why this card is the best low interest credit card for 0% intro APR

Not only does the Blue Cash Everyday offer 0% intro APR on balance transfers for 15 months, it offers the same for purchases. It’s 14.49%-25.49% variable after that.

Pros

The ongoing rewards on this card are strong for a cash back card with no annual fee, and the regular variable APR starts out low at 14.49%-25.49%.

Cons

The welcome offer on the Blue Cash Everyday can be beaten by some competitors, and its tiered ongoing rewards might make you hesitate if you don’t want to think about which card to pull out for specific purchases.

Wells Fargo Cash Wise Visa® card

Why this card is the best low interest credit card for digital wallet purchases

In addition to the Cash Wise’s flat rewards rate, you can earn 1.8% cash rewards on qualified digital wallet purchases, like Apple Pay® or Google Pay™, during the first 12 months from opening your account.

Pros

This card is competitive in all sorts of ways, from the sign-up bonus to the ongoing rewards to the 0% intro offer on both purchases and qualifying balance transfers for 15 months (then 15.49% – 27.49% variable).

Cons

The balance transfer fee heads into the upper range of 5% (with a minimum of $5) if you make the transfer after 120 days from opening your account. It’s 3% or $5, whichever is greater, up to 120 days. Also, there’s a foreign transaction fee of 3%.

BankAmericard® credit card

Why this card is the best low interest credit card for long balance transfer offer

The 18-billing cycle intro (0% Introductory APR) offer on both purchases and balance transfers made in the first 60 days is excellent (then 14.49%-24.49% variable APR thereafter).

Pros

The BankAmericard offers no penalty APR and no annual fee. Also, access your FICO Score for free online or through the mobile app.

Cons

Unfortunately, the BankAmericard has no sign-up bonus or ongoing rewards, which makes this not a good option for a seeker of rewards.

Wells Fargo Propel American Express® card

Why this card is the best low interest credit card for sign-up bonus

The Propel offers 20,000 points after a $1,000 spend within the first 3 months of card membership, a solid offer for a low interest card with no annual fee.

Pros

Along with its solid 3X rewards rate on dining, travel and select streaming services, this no annual fee card offers a 0% intro APR on both new purchases and qualifying balance transfers for the first 12 months (15.49%-27.49% variable after that).

Cons

If you are really looking for a balance transfer or purchase offer with a long intro APR, this might not be the card for you.

Citi® Double Cash Card

Why this card is the best low interest credit card for cash back

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

Pros

This card possesses one of the longest BT intro APR offers, with 0% for 18 months, then 15.49%-25.49% variable after that. This means balance transfers at 0% can be carried into mid-year 2021.

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.

Compare the best low APR credit cards of 2020

Credit Card Best For: 0% Purchase APR Period Regular APR CreditCards.com Rating
Discover it® Cash Back Low interest 14 months 13.49% – 24.49% (Variable) 3.7 / 5
Capital One® VentureOne® Rewards Credit Card Low fees 12 months 14.49% - 24.49% (Variable) 3.0 / 5
Discover it® Balance Transfer First year bonus 6 months 13.49%- 24.49% (Variable) 4.5 / 5
Capital One® Quicksilver® Cash Rewards Credit Card Low balance transfer fee 15 months See terms 3.3 / 5
Blue Cash Everyday® Card from American Express 0% intro APR 15 months 14.49% – 25.49% (Variable) 3.6 / 5
American Express Cash Magnet® Card No annual fee 15 months 14.49% – 25.49% (Variable) 4 / 5
Wells Fargo Cash Wise Visa® card Digital wallet purchases 15 months 15.49% – 27.49% (Variable) 2.8 / 5
BankAmericard® credit card Long balance transfer offer 18 billing cycles 14.49% – 24.49% (Variable) 3.6 / 5
Wells Fargo Propel American Express® card Sign-up bonus 12 months 15.49% – 27.49% (Variable) 3.5 / 5
Citi® Double Cash Card Cash back N/A 15.49% – 25.49% (Variable) 1.4 / 5

Research methodology: how we picked the best cards

Low interest credit cards 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 intro offers for purchases and balance transfers, 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. Here, we answer your most common questions about interest rates and credit cards.

What is the average interest rate on a credit card?

The national average interest rate for credit cards is currently 17.30%. When the Federal Reserve dropped interest rates 3 times in 2019, it prompted many card issuers to in turn drop their rates, bringing the national average to the current level. The average interest rate for retail store cards is 26.01%, our October 2019 study found, which is even higher than the average rate of cards that allow bad credit, which is currently 25.30%.

What is considered a low interest rate?

Typically, a low interest rate is considered a figure that is below the national average. According to CreditCards.com’s weekly rates survey, the low interest average is currently 14.10%.

How does your credit score affect your interest rate?

Card issuers in part look at your credit risk when deciding what interest rate to give you. One of those metrics is your credit score, which primarily looks at payment history and your balance-to-available-credit ratio. That’s one reason why it’s important to pay attention to your score.

What consumers know and don’t know about their cards’ APRs…

  • Carried a balance on at least 3 cards
  • 24%
  • Balance-carrying cardholders who knew the interest rate on all of their cards
  • 39%
  • Were unsure or unaware of their cards’ APRs
  • 48%
  • Men who weren’t sure about the interest rate on all their cards
  • 43%
  • Women who weren’t sure about the interest rate on all their cards
  • 53%
  • CreditCards.com poll

How credit card interest works

You probably know that if you carry a balance on your credit card, at some point you will pay interest. Here, we explain how that works.

Your interest is expressed in APR, or annual percentage rate. According to Discover, you divide that rate by 365 (days of the year) to calculate your daily rate. So, if your card has an APR of 15%, it will have a daily rate of .041096%. So, with a balance of $1,000 at 15%, you add the interest, and the new balance the next day is $1,000.41. This continues, with compounding, until the end of the month when your balance is $1,013.

You will usually get a grace period of roughly a month to pay your bill off and avoid interest, and of course you can take out a 0% intro APR card as well to avoid paying interest. But the bottom line is that if you don’t pay off your balance, you will eventually get slammed with interest, and your monthly charges can drag on for years if you only pay the minimum.

To calculate interest on a credit card, use our handy-dandy interest calculators, which allow you to figure out how long it will take you to pay off a balance with the minimum payment; how much you can save by speeding up the payment process; and more.

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. Some cards, such as The Amex EveryDay® Credit Card from American Express, offer a 0% intro offer for a set time, in the case of the EveryDay, for 15 months. Then, the balance is charged at the go-to rate of 14.49% – 25.49% variable, which is usually the standard rate for the card.
  • 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 go-to rate.
  • Cash advance APR. This rate usually kicks in immediately after you take out the cash.
  • Penalty APR. Some cards, such as Discover products, don’t have this type of APR, while others do. It can be considerably high and some issuers reassess your payment history regularly to decide if this rate continues.

How to choose the best low interest credit card for you

Factors to consider

    • 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, start with a super low APR – in the case of the Discover card, it’s 13.49%-24.49% variable.
    • Are you interested in rewards? – Most of our top low interest credit cards offer travel or cash back rewards, as in the case of the Quicksilver.
    • What is the annual fee? – The bulk of our low interest cards offer no annual fee, but some, such as the Blue Cash Preferred® Card from American Express, have an annual fee that may actually be worth your while because of the rewards offered.
    • Are you planning a big purchase? – Low interest credit cards might offer a 0% intro APR on balance transfers, purchases or both. Some, such as the BankAmericard, offer extended 0% intro APR on both. In the case of the BankAmericard, it’s 18 billing cycles for purchases and balance transfers made within the first 60 days of opening your account (it’s 14.49%-24.49% variable after that).

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:

Card: Discover it Cash Back
Discover it Balance Transfer card
Capital One VentureOne Rewards
Capital One VentureOne Rewards
Credit Required: Good – Excellent Good – Excellent
0% intro APR period – Purchases: 14 months 12 months
0% intro APR – Balance transfer: 14 months n/a
Regular APR: 13.49%-24.49% (Variable) 14.49% - 24.49% (Variable)
Annual fee: $0 $0
Rewards rate: 5% on rotating categories each quarter* 1.25X miles on every purchase

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

As you can see, the cards’ lowest rates and annual fees are comparable. The Discover card has a longer 0% intro APR period for purchases and the Capital One does not offer a 0% intro APR period on balance transfers. If you are not transferring a balance and plan to pay off your balance each month, the rewards for either card can be worth your while, depending on your preferred spending habits.

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 124 months to pay the minimum amount, and you would end up paying $2,122 in interest alone.

Card debt rose by $13 billion in the third quarter of 2019 when compared to the previous period, according to the New York Fed, while seriously delinquent credit card accounts (more than 90 days past due) leveled off to 8.3% in 2019.

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…

Rate Monthly payment Months to pay off Amount owed Interest to pay off
16.5% 3% or $25, whichever is greater 124 $3,000 $2,122
16.5% $200 17 $3,000 $383

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.

Comparing payoff with low interest vs. higher interest…

Card Regular APR Rate Monthly payment Months to pay off Amount owed Interest to pay off
Capital One VentureOne Rewards 14.49% - 24.49% (Variable) 14.49% 3% or $25, whichever is greater 113 $3,000 $1,651
Capital One VentureOne Rewards 14.49% - 24.49% (Variable) 24.49% 3% or $25, whichever is greater 187 $3,000 $5,031

As you can see, even when you are paying the minimum, with the same card but the lowest and highest interest rate offered, the difference in the amount paid in interest is considerable, with the lowest rate paying more than $3,000 less in interest charges than the highest rate.

Can you ask for a lower credit card interest rate?

The most direct way to lower your interest rate on your credit card is to simply ask. We found in a 2018 survey that 56% of consumers who asked for a lower interest rate got it. And it’s important to stay mindful of what your interest rate is, although another of our polls found that one-third of cardholders with a balance didn’t know their interest rate.

Why you should avoid keeping a balance on your credit card

In addition to interest incurred when carrying a balance, there’s another reason why you should avoid card debt. The second most important factor of your credit score is your credit utilization ratio, or how much you owe on your cards compared to how much credit you have available. So, if you owe $500 and you have $5,000 in available credit, then your utilization ratio is 10%.

Figuring out your credit utilization ratio

Card Credit available Amount owed Credit utilization ratio
Bank of America Cash Rewards $2,000 $200 $200/$2,000=10%
Capital One Quicksilver $2,000 $300 $300/$2,000=15%
Discover it Cash Back $1,000 $0 $0/$1,000=0%
TOTAL $5,000 $500 $500/$5,000=10%

As you can see, there is a ratio for each card and a total ratio for all cards combined. Both matter. The industry standard is to keep the ratios under 30%, but it’s best to keep them as close to 0% as possible, partly to avoid paying interest and partly to keep your credit healthy.

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:

You can read some individual reviews for low interest credit cards at 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.


All information about The Amex EveryDay® Credit Card from American Express has been collected independently by CreditCards.com and has not been reviewed by the issuer. The Amex EveryDay® Credit Card from American Express is no longer available through CreditCards.com.


Laura is an editor and writer at CreditCards.com. She has written extensively on all things credit cards and works to bring you the most up-to-date analysis and advice. Laura’s work has been cited in such publications as the New York Times and Associated Press. You can reach her by e-mail at laura.mohammad@creditcards.com and on Twitter @creditcards_lm.


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