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.
Editor: Laura Mohammad | Writer: Garrett Yarbrough
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
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CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
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Your guide to choosing the best low interest credit card
Although it’s usually best to pay off your credit card balance each month, sometimes that isn’t possible. That’s where low interest cards come in. Credit card interest rates can usually fall within a specified range, depending on your credit score. Low interest credit cards are known for ranges that fall below the average credit card interest rates.
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:
The Discover it Cash Back, like several other Discover cards, offers a super-low regular interest rate of 11.99%-22.99% variable APR, ideal for the occasional balance. 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. Unfortunately, there’s no traditional sign-up bonus on this card, and the purchase and travel benefits are nonexistent.
The Blue Cash Everyday offers 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. 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. With the Everyday, you can earn 3% cash back at U.S. supermarkets (up to $6,000 annually, then 1%), while with the Preferred, you can earn 6% cash at U.S. supermarkets (up to $6,000 annually, then 1%), which might make the Preferred the better choice for the larger family.
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. It also possesses one of the longest BT 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. 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.
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. Along with top-tier rewards, this card offers an introductory 12 billing cycle 0% interest period for both balance transfers made within the first 60 days and purchases (13.99%-23.99% variable APR after). A 3% fee (minimum $10) applies to all balance transfers.
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. Plus, 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. 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.
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). Plus, the card’s low-end ongoing APR is lower than the average credit card APR. 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.
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. Additionally, there are no fees of any kind, and you’ll earn 1.5% cash back on your purchases when you make a payment. On the flip side, 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.
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. The card’s 13.49%-23.49% variable APR is solid on the low end, and there’s no annual fee. 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.
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. Plus, 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. Just 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.
With its rewards, low introductory interest offer on purchases, as well as a low ongoing interest rate, it’s rather remarkable that the Cash Magnet has no annual fee. Like the Blue Cash Everyday, the regular variable APR starts out low at 13.99%-23.99%. Also, the 1.5% cash back on purchases is quite convenient, though not the most competitive rewards rate on the market.
The card earns 5x rewards on categories such as groceries, dining and travel, capped at $1,500 in combined purchases per quarter. By strategically spending in the bonus categories as well as earning 1X points on all purchases, cardholders can see significant rewards earnings. Plus, there’s no annual fee and an intro 0% APR offer on purchases for 12 months (12.90% – 22.90% variable APR after). Despite the offer for purchases, there’s no introductory window for balance transfers.
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?
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.
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.
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.
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.
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…
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.
Can you ask for a lower credit card interest rate?
There are several ways to lower your interest rate, the most direct being to simply ask. In most cases, you can call your card provider and work with them to negotiate a better rate. There’s even a chance you can work with your card issuer and come to an agreement on a new payment plan altogether. It’s important to stay mindful of what your interest rate is; that way there are no surprises if you ever carry a balance.
Which is best: low interest, balance transfer or 0% intro APR purchase credit card?
Although any of these types of cards can help you financially, your specific circumstances are what determine the best option for you. Each type has a slightly different impact: Low interest credit cards generally focus on providing a lower ongoing APR, zero interest cards don’t tack on interest charges for a set period and balance transfer cards are designed to help move credit card debt. Depending on the type of cardholder you are, there may be a clear-cut best choice.
Which kind of cardholder are you?
The level of consideration you give to a credit card’s interest rate depends on the way you will be using the card. The American Bankers Association’s Credit Card Industry Monitor divides cardholders into 3 types: transactors, revolvers and dormants. Transactors usually pay their balance in full each billing cycle, while revolvers tend to carry a balance from month to month. Dormants, who make up a quarter of accounts, don’t use their credit card at all. Having a credit card with low interest is only important for revolvers, who make up the largest segment of cardholders.
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:
*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:
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
Garrett Yarbrough
CreditCards.com expert Garrett Yarbrough strives to make navigating credit cards and credit building smooth sailing for his readers. He specializes in cash back and credit scores, delivering valuable next steps toward personal financial growth. Most recently, Garrett's credit card and credit monitoring analysis were regularly featured on NextAdvisor.com. You can send your questions to gyarbrough@redventures.com.
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.
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