Best Low Interest Credit Cards of October 2023

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.

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.

Overview of the best interest rate credit cards

Here are the highlights of our top picks for low interest credit cards.

BankAmericard® credit card

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

Citi® Diamond Preferred® Card

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

Citi Simplicity® Card

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

Discover it® Cash Back

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

Bank of America® Customized Cash Rewards credit card

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

Capital One Quicksilver Cash Rewards Credit Card

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

Wells Fargo Reflect® Card

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

Wells Fargo Active Cash® Card

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

What is a low interest credit card?

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.

Types of low interest credit cards

There are two main types of low interest rate credit cards:

• 0% intro APR: Credit cards that temporarily charge no interest on purchases or balance transfers. This lasts only for a certain period of time, typically ranging from 12 to 20 months. In addition to the 0% intro APR periods, these cards also vary significantly in terms of the fees charged and other benefits offered.
• Low permanent APR: Credit cards with constant below-average APR. These still typically fluctuate with benchmark interest rates but tend to stay lower than the average APRs on the market. It isn't easy to identify these cards, as interest rates depend on several factors.

How to compare the best low interest credit cards

To compare low interest credit cards, start by deciding if you need:

• A 0% intro APR on purchases
• A 0% intro APR on balance transfers
• A low permanent APR
• A combination of the above perks

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.

How to get a low APR credit card

When you're ready to get a low APR credit card, here are the steps to follow.

1. Check your credit score so you know which cards you can qualify for.
2. Choose low APR credit cards with the features you want.
3. Compare the credit cards you selected.
4. Apply for the card that you like the most.

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:

• An instant approval
• A denial
• A further review

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.

How does credit card interest work?

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:

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.

How to use a low interest credit card

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.

Is a low interest card right for you?

Here are some examples of when a low interest credit card can be useful:

• You carry a balance often. If you tend to carry a balance on your credit card, getting a low interest credit card can help you save lots of money in interest.
• Your income fluctuates. People who have irregular income may benefit from having a low interest credit card to help cover expenses in periods when cash flow is particularly tight.
• You need emergency financing. Nothing beats having a few months of living expenses in your bank account. But having a low interest credit card as a backup source of financing can help you handle unforeseen large expenses (such as a car repair or a midnight call to a plumber) while minimizing the amount of interest you pay.
• You want to pay off debt. Whether you get a low interest credit card or a 0% into APR credit card, consolidating debt with a balance transfer can be an effective way to pay down debt quickly and save money on interest. Use our balance transfer calculator to see if a low interest credit card is right for you.

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.