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If you're looking for a credit card, getting one with a low interest rate should be one of your top priorities. It's always ideal to pay off your balance in full each month, but sometimes it's not possible. The lowest interest credit cards can tide you over when you come up short. They can also serve as a back-up emergency fund, and even help you pay off debt quickly. Here are our top picks for the best low interest credit cards.
Great for: Long intro 0% APR on balance transfers
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 21 months
Regular APR
18.24% - 28.99% (Variable)
Rewards
N/A
Annual Fee
$0
A hard-to-beat 0% intro APR credit card that's a fit for cardholders wanting to pay off debt faster with balance transfer strategies and/or finance the cost of a purchase and temporarily avoid costly interest charges. Read Full Review
Citi Simplicity® Card
Great for: Long balance transfer and no late fees
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 21 months
Regular APR
19.24% - 29.99% (Variable)
Rewards
N/A
Annual Fee
$0
Welcome Offer There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening.
Lower intro balance transfer fee
With a long 0% intro APR offer, no late fees, no annual fee, and no penalty rate, this card is an unmatched pick.
Great for: 0% APR on purchases and balance transfers and unlimited Cashback Match
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 15 months
Balance Transfers: 0%, 15 months
Regular APR
17.24% - 28.24% Variable APR
Rewards Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.
1% - 5% Cashback
Annual Fee
$0
Welcome Offer Intro Offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Cashback Match
Includes a robust rewards program and rich sign-up bonus offer that has unlimited upside. Somehow this card also packs in a great intro APR offer for no annual fee. Read Full Review
Bank of America® Customized Cash Rewards credit card
Great for: Long intro APR and bonus cash back
On Bank of America's Secure Website.
On Bank of America's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24% - 28.24% Variable APR on purchases and balance transfers will apply. A 3% fee applies to all balance transfers.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR
18.24% - 28.24% (Variable)
Rewards 3% cash back in your choice category, 2% at grocery stores & wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% on all other purchases.
1% - 3% cash back
Annual Fee
$0
Welcome Offer $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
$200
Includes a big welcome offer, a long 0% intro APR, and a flexible cash rewards program that enables you to earn premium rewards in a category of your choice. Read Full Review
Capital One Quicksilver Cash Rewards Credit Card
Great for: Unlimited cash back and card perks
On Capital One's Secure Website.
On Capital One's Secure Website.
Good/Excellent (670-850)
Intro APR 0% intro APR on purchases and balance transfers for 15 months; 19.99%-29.99% variable APR after that; 3% fee on the amounts transferred within the first 15 months
Purchases: 0% intro on purchases for 15 months
Balance Transfers: 0% intro on balance transfers for 15 months
Regular APR
19.99% - 29.99% (Variable)
Rewards
1.5% cash back
Annual Fee
$0
Welcome Offer $200 cash back after you spend $500 on purchases within 3 months from account opening
$200 Cash Back
One of the most versatile and flexible cash-back cards we've seen. The long 0% intro APR makes the offer hard to pass up, especially if you're wanting to keep a one-card wallet that packs in a rich rewards program. Read Full Review
Great for: 0% intro APR for balance transfers and purchases
Good/Excellent (670-850)
Intro APR 0% intro APR, 21 months from account opening on qualifying balance transfers
Purchases: 0% intro APR, 21 months from account opening
Balance Transfers: 0% intro APR, 21 months from account opening on qualifying balance transfers
Regular APR
18.24%, 24.74%, 29.99% variable APR
Rewards
N/A
Annual Fee
$0
Welcome Offer
N/A
A clear leader with a 0% intro APR offer that is among the longest we've come across. Read Full Review
Great for: 0% intro APR and unlimited cash back
Good/Excellent (670-850)
Intro APR 0% intro APR, 15 months from account opening on qualifying balance transfers
Purchases: 0% intro APR, 15 months from account opening
Balance Transfers: 0% intro APR, 15 months from account opening on qualifying balance transfers
Regular APR
20.24%, 25.24%, or 29.99% variable APR
Rewards
2% cash rewards
Annual Fee
$0
Welcome Offer $200 cash rewards bonus after spending $500 in purchases in the first three months
$200 cash rewards offer
A standout cash back card that has no annual fee and comes with a competitive cash rewards welcome offer and 0% intro APR offer. Read Full Review
Whether you're looking to round out your wallet or open your first credit card, a low interest credit card is a must have. If you ever need to carry a balance or use a credit card to cover an emergency, you don't want to be hit with astronomical interest fees. If you're paying down debt, look for a low interest credit card that comes with a 0% intro APR offer, which could save you hundreds of dollars. Here's everything you need to know about choosing and using low interest credit cards.
Here are the highlights of our top picks for low interest credit cards.
Great for: 0% intro APR for purchases and balance transfers
The BankAmericard® credit card packs in a rare combination of a long 0% intro APR for both purchases and balance transfers made within the first 60 days. Many competing cards offer a long 0% intro APR for one, and at the expense of the other.
Read the full BankAmericard® credit card review
Great for: Long intro 0% APR on balance transfers
The Citi® Diamond Preferred® Card doesn't charge an annual fee and starts you off with an impressive purchase and balance transfer 0% intro APR.
Read the full Citi® Diamond Preferred® Card review
Great for: Long balance transfer and no late fees
The Citi Simplicity® Card eliminates common credit card fees, as it doesn't charge a late fee, annual fee, or penalty APR.
Read the full Citi Simplicity® Card review
Great for: Balance transfers and bonus cash back
The Discover it® Cash Back gives you plenty of time to pay off balances you transfer over. You get the best of both balance transfer and cash back worlds with this card.
Read the full Discover it® Cash Back review
Great for: Bonus cash back
The Bank of America® Customized Cash Rewards credit card packs in all of the essentials that make a one-card wallet possible. There's a big sign-up bonus, no annual fee, long 0% intro APR offer, and robust rewards program.
Read the full Bank of America® Customized Cash Rewards credit card review
Great for: 0% purchase and balance transfer intro APR and cash back
The Capital One Quicksilver Cash Rewards Credit Card charges no interest on purchases and balance transfers for an introductory period and offers flat-rate cash back rewards.
Read the full Capital One Quicksilver Cash Rewards Credit Card review
Great for: 0% intro APR for balance transfers and purchases
The Wells Fargo Reflect® Card stands out as a top choice with its impressive lengthy 0% introductory APR offer. In addition, it boasts a wide range of valuable credit card benefits, making it a clear frontrunner.
Read the full Wells Fargo Reflect® Card review
Great for: 0% intro APR and unlimited cash back
The Wells Fargo Active Cash® Card is an exceptional cash back card with no annual fee. It offers a generous cash rewards welcome offer and a 0% introductory APR offer.
Read the full Wells Fargo Active Cash® Card review
Low interest credit cards, or low APR credit cards, are cards that charge a below-average annual percentage rate (APR) on purchases, either on a temporary or a permanent basis. The best low interest rate credit cards can save you a tremendous amount of money if you carry a credit card balance, and they can also help you pay down debt faster.
The interest rate you pay on any given credit card depends on a few factors, such as your credit history and overall debt profile. If you qualify for low interest credit cards, you'll be charged less interest than usual, making it more affordable to carry a balance. Some cards even offer 0% intro APRs for several months on both purchases and balances transferred from other cards. Generally speaking, this is the best way to save money on your credit card balances.
There are two main types of low interest rate credit cards:
To compare low interest credit cards, start by deciding if you need:
Next, pick out cards that have the features you're looking for and see how they measure up. To make this easier, use a tool for comparing credit cards side by side.
Let's say that you need a 0% intro APR on purchases to finance a kitchen remodel. In that case, you'd narrow down your search to low interest cards with an intro 0% purchase APR. You could then see which cards have the longest intro 0% APR offers.
As you're comparing low interest cards, it's worth looking at other features besides the APR, such as welcome bonuses and purchase rewards. These also add value and can work well as a tiebreaker if multiple low interest credit cards meet your needs. For example, if you need a 0% intro APR for 15 months or more and you find several cards offering that, you could compare their rewards to make your selection.
Check out the video below to learn how to pick the best low interest card.
When you're ready to get a low APR credit card, here are the steps to follow.
See our guide on how to apply for a credit card for more details.
Any time you're planning to get a new credit card, the first thing you should do is check your credit. You can do this through free credit score services online. Look for one that provides your FICO® Score, because that's the most widely used credit score by lenders.
Review the best low APR credit cards and compare what each one has to offer. Make sure that the cards you pick are all available for consumers in your credit score range. This gives you a better chance of being approved.
Once you've found the right low interest credit card, select the "Apply Now" option. Fill out the application with the required information. After you submit the application, there are three possible outcomes:
If your application is approved, then you're finished. If it's denied, you can either call the card issuer and ask for a reconsideration or choose another low interest card to apply for.
It's important to understand how credit card APRs work so that you understand how much your credit card balance is costing you.
APR stands for "annual percentage rate." It's the rate of interest applied to your balances. Most credit card companies use an average daily balance method for calculating interest. To arrive at the daily interest rate, they divide the card's APR by 365.
To illustrate the impact the best low interest credit cards can have, compare how making a payment of $100 per month on a $3,000 initial credit card balance would reduce your debt over six months in three different APR scenarios:
Month | Balance with 18% APR | Balance with 12% APR | Balance with 0% intro APR |
---|---|---|---|
0 | $3,000 | $3,000 | $3,000 |
1 | $2,945 | $2,930 | $2,900 |
2 | $2,889 | $2,859 | $2,800 |
3 | $2,833 | $2,788 | $2,700 |
4 | $2,775 | $2,716 | $2,600 |
5 | $2,657 | $2,569 | $2,500 |
6 | $2,597 | $2,495 | $2,400 |
Here's the takeaway: After six months, the cardholder with a 0% intro APR would have reduced their debt by nearly $200 more than the cardholder with an 18% APR, even though they both made the same payments.
Low interest credit cards can come in handy if you utilize them correctly. Here are a few tips on how to best put them to use.
Keep one in your wallet to cover emergencies. Ideally, you should have enough cash in an emergency fund to cover at least six months of living expenses. But if you don't have anything in your savings account, or it's not enough to pay for an unexpected expense, you could use a low interest credit card as a kind of backup emergency fund.
Unlike some other options, such as a personal loan, the funds on a credit card are immediately available. And the low interest rate should help keep your payments affordable. You can use our emergency fund calculator, to calculate how much you may need in an unexpected situation.
Use it to finance a big purchase. Low interest credit cards can be a good way to buy big-ticket items you can't afford to pay for all at once. Look for a really low rate -- or, even better, a 0% intro APR on new purchases. You'll want to explore all of your options first though, as it's often wiser to wait until you've saved enough money to pay upfront.
If you go with a 0% intro APR credit card, you could potentially finance the purchase without paying any interest at all. But it's crucial that you make sure you can pay off the balance before the introductory period ends.
Do a balance transfer to pay off debt more quickly. If you're trying to pay off debt with a high interest rate, you know firsthand how crippling those massive interest charges can be. Doing a balance transfer -- that is, transferring your existing debt to a credit card with a lower interest rate -- can significantly relieve that burden.
It will ensure that more of your monthly payment goes toward chipping away at that balance rather than paying interest fees. You can even opt for a balance transfer credit card with a 0% intro APR on balance transfers, but you'll want to make sure you can pay off the balance before your introductory period ends. But be sure to research your options first: If you can qualify for a low interest personal loan and use that to pay off your debt, you might save even more money.
Don't use it as an excuse to rack up more debt. If you're someone who's trying to save money or get out of debt, then a low interest credit card may seem like a great option. However, it's important to remember that the low rate is only helpful if you're disciplined enough to not overspend.
In fact, using a low interest credit card as an excuse to rack up even more debt could defeat the whole purpose of your financial goals. So, before you jump on board with a low interest card, take the time to examine your finances and determine if you'll be able to stay within your means. With a bit of self-discipline, you can make the most of a low interest credit card and get back on track with your finances.
Here are some examples of when a low interest credit card can be useful:
While we'd never advise carrying a balance for long periods of time, a low interest credit card can be better than the alternatives. You would pay about $10 in interest every month on a $1,000 balance at a 12% APR. That's far better than paying a $35 overdraft fee or getting a loan shark rate from a payday loan store.
Card | Rating | Great For |
---|---|---|
Rating image, 4.25 out of 5 stars.
4.25 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Long intro 0% APR on balance transfers |
|
Rating image, 4.75 out of 5 stars.
4.75 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Long balance transfer and no late fees |
|
Rating image, 5.00 out of 5 stars.
5.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: 0% APR on purchases and balance transfers and unlimited Cashback Match |
|
Rating image, 4.00 out of 5 stars.
4.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Long intro APR and bonus cash back |
|
Rating image, 4.50 out of 5 stars.
4.50 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: Unlimited cash back and card perks |
|
Rating image, 5.00 out of 5 stars.
5.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: 0% intro APR for balance transfers and purchases |
|
|
Rating image, 5.00 out of 5 stars.
5.00 stars
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Great For: 0% intro APR and unlimited cash back |
We think about credit cards and their APRs in two different ways. Some cards offer exceptionally low APRs for a certain period of time (0% intro APRs on purchases or balance transfers), while others offer persistently low APRs, generally for people who have excellent credit. These cards fit into two distinct categories because they are designed for very different purposes.
Intro APRs: If you need a low APR to help finance a purchase or pay down existing credit card debt with a balance transfer, a 0% intro APR is ideal. There are many credit cards that offer a 0% intro APR for as long as 20 months. The advantage to these cards is that they offer a super-low APR, although only for a short period of time.
Low interest cards: Some cards offer consistently low APRs, usually to people who have excellent credit scores. (The credit card with the lowest interest rate will usually have an APR that ranges from 10% to 18%, which is in line with rates on two-year personal loans.)
A credit card with 0% intro APR is generally the better way to go, especially if you can pay off your entire balance before the introductory period expires. Cards with permanently low interest rates are still an expensive way to borrow money, especially with the emergence of the personal loan industry over the past few years.
It can be difficult to find a credit card with a permanently low interest rate, and it's typically a better idea to obtain a personal loan if you need to finance a large purchase over an extended period of time. These have fixed rates that are often superior to even the lowest permanent credit card APRs and allow you to repay your debt over a few years.
It is sometimes possible to lower your credit card interest rate. If you've never missed a payment, or if you've diligently been paying off a balance for a while, your credit card issuer might be willing to reward you by decreasing your APR slightly. Give customer service a call and request a lower interest rate -- the worst that can happen is they'll say no. If that's the case, you can look into opening a low interest credit card instead.
Credit card interest can be a little tricky, but once you understand how it works, it’s actually pretty simple.
The first thing you should understand is that credit cards show interest rates on an annual basis, but most credit cards charge interest on a daily basis. So if a credit card has an 18% APR, that means it actually carries an interest rate of about 0.049315% per day (18% ÷ 365 days = 0.049315%).
If you have a $5,000 balance, the next day the balance would grow to $5,002.70 at an 18% APR, assuming that no other purchases or payments are made. This interest calculation is made every day during a billing cycle. After 30 days, the $5,000 starting balance would grow to about $5,074.50 at an 18% APR.
Given that most credit cards with 0% intro APR don't come with annual fees, it's not necessary to close the card when the introductory period ends. In fact, closing it could lower your credit score. Your credit utilization ratio -- that is, your overall debt divided by your overall credit limit -- plays a large part in calculating your credit score. The lower it is, the better. By keeping your credit card open after the 0% intro APR ends, and also not running up a balance, you'll be keeping your debt-to-credit ratio low. However, the key is not to run up a balance. If you can't trust yourself to keep the card open without falling into debt, it's best to close the card and remove the temptation.
It makes sense to get a low interest credit card when you want a credit card on hand to use for everyday purchases or emergency expenses. The lower interest rate will help you save money if you ever need to carry a balance. Low interest credit cards can also make sense if you want to do a balance transfer to pay off debt. However, it's worth considering a balance transfer credit card with a 0% intro APR if you'll be able to pay off your balance during the intro period.
Our Credit Cards Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
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