dcsimg
Low Interest Credit Cards

The Best Low Interest Credit Cards

Low interest credit cards have either a low ongoing APR or a low introductory APR (typically 0% interest for a fixed period of time such as 21 months).  If you may occasionally carry a balance, a low interest credit card is a good option.  Try to find a card that suits you and doesn’t carry an annual fee.  Apply for the best choice by filling out a secure online application.

Category
Monthly Spend
Balance
  • Earn 5,000 bonus reward points after your first purchase with promotional code "POINTS5000"
  • 2X rewards for your first 60 days, then 1 point for every $1 spent
  • Subject to Credit Approval
  • No limit to the amount of reward points you can earn
  • Earn bonus reward points on select categories every quarter
  • Choose from over 6 million different reward options, including cash back, merchandise, gift cards, travel, events, activities and more
  • Promotional balance transfer rates as low as 4.99%
  • No balance transfer fee*
  • No annual fee*
 

 Card Rating

 Credit Needed

 All invited to apply

 
  • Membership eligibility and product restrictions apply and are subject to change.
  • Enjoy our lowest rate card.
  • Pay no annual, penalty APR or foreign transaction fees.
  • Get travel and retail benefits.
  • Special Benefits for Military: Reduced Rate: Get 4% APR on all balances for up to 12 months during deployment or PCS. After 12 months, the regular APR of between 7.40% and 24.40% will apply. This rate will vary with the market based on the prime rate. Special 4% SCRA Rate: When you have a balance on your account at the time you enter active military duty, get 4% APR on that existing balance until one year after you complete active duty.
  • Security Benefits: Chip card technology has added security when used at a chip-enabled terminal and greater acceptance worldwide. Zero liability coverage for unauthorized transactions if your card is lost or stolen. Collision damage waiver coverage pays for physical damage and theft to most rental vehicles. Get account balances and transaction history by sending a text message. Access your account on usaa.com or from a mobile device.
 

 Card Rating

 Credit Needed

 Good

 
These quotes are from credit card issuers which have paid for a link to their website. Offers are subject to change without notice and may not be the same for all consumers.
Key facts on low interest credit cards

The interest rate will often be the first characteristic you notice when you consider a new credit card, and for good reason. In the long run, a difference of one, two or even five percentage points can make a big difference on what you pay in finance charges.

Because of this, you'll often see low interest credit cards promoting their APRs (annual percentage rates) in big type in print and online ads. These promotions may leave you wondering, "What is a low interest card? And if they're so great, why would anyone get anything else?" Low rate credit cards can offer great benefits, but there are a few things you should know before you apply for one.

Is a low interest credit card right for you?

A low interest rate is particularly important for card holders who carry a balance from month to month. If you're still paying for last summer's vacation or your living-room furniture, using a card with a rate in the single digits is a good financial move.

On the flip side, if you pay off your balance each month, your card's rate may mean less to you. But some card holders prefer the peace of mind of knowing the card has a low rate, just in case they need to carry a balance in the future.

Also, not everyone is eligible for the best low interest credit cards. These deals usually are targeted to applicants with good to excellent credit histories. Cards targeted to those with poorer histories often have APRs that are double or triple that of the best low interest cards. Making yourself eligible for lower rates is one very compelling reason to pay close attention to your credit's health.

Do low interest cards have drawbacks?

Many card offers come with a teaser rate--an introductory APR that only lasts for a certain amount of time and may only apply toward certain types of transactions (balance transfers, for instance). But if you have a big balance to pay off and the low teaser rate ends after six months, you may find yourself with a higher-rate card before you've gotten traction on paying off your balance.

In addition, even cards without introductory offers--or with favorable standard APRs--may have an adjustable rate. In those cases, that 11 percent APR you searched hard to find could increase based on the most recent prime rate activity.

Always read the terms carefully before you apply for any card. Card terms are presented consistently, so you can compare offers easily to see which card better fits your situation. You also are entitled to a written notification if you are turned down for a card. If you are turned down, use the notification from the card company to plan your strategy for boosting your creditworthiness. The Federal Reserve's website has more information about how credit reports affect your financial options.

How can you get a low interest card?

Consider these tips for finding the best low interest credit card:

  • Keep an eye out for new rates or special offers in your mailbox or online. Online sites often have the most recent information about current deals.
  • Talk to your current credit card company about a lower rate or a different card within their family of cards.
  • Look at offers from credit unions or membership associations. Many financial companies with limited memberships offer lower standard rates.

With a low rate, more of your dollars go toward paying down your balance instead of paying for interest. And keeping your credit card balance manageable is one of the keys to staying on solid financial footing.

Disclaimer: Because rates & offers from advertisers shown on this website change frequently, please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise.