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- Best Credit Cards
- Best Low Interest Credit Cards
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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. Low 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.
The Ascent's picks for the best low interest credit cards:
- Long intro 0% APR on purchases and balance transfers: Citi® Diamond Preferred® Card
- Long balance transfer and purchase offer: Citi Simplicity® Card - No Late Fees Ever
- Balance transfers and cash back: Citi® Double Cash Card – 18 month BT offer
- Bonus cash back: Bank of America® Cash Rewards credit card
- Long 0% intro APR for balance transfers and purchases: U.S. Bank Visa® Platinum Card
- Unlimited cash back: Capital One® Quicksilver® Cash Rewards Credit Card
- Balance transfers and purchases: Wells Fargo Platinum card
Great for: Long intro 0% APR on purchases and balance transfers
Rating image, 4.5 out of 5 stars.
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.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.
Bottom Line
A hard-to-beat 0% intro APR credit 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
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: 0%, 18 months
Balance Transfers: 0%, 18 months
Ongoing APR
14.74% - 24.74%, variable
Welcome Bonus
N/A
Highlights
- 0% Intro APR for 18 months on purchases from date of account opening and 0% Intro APR for 18 months on balance transfers from date of first transfer. After that the variable APR will be 14.74% - 24.74%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater
- Get free access to your FICO® Score online.
- With Citi Entertainment®, get special access to purchase tickets to thousands of events, including concerts, sporting events, dining experiences and more.
- Shop with confidence knowing that you have dependable protection benefits, including $0 Liability on Unauthorized Charges and Citi® Identity Theft Solutions.
- The standard variable APR for Citi Flex Plan is 14.74% - 24.74%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
Great for: Long balance transfer and purchase offer
Citi Simplicity® Card - No Late Fees Ever
Rating image, 4.5 out of 5 stars.
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.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.
Bottom Line
If getting rid of credit card debt is on your to-do list, this card can help. With no late fees, no annual fee, and no penalty rate, this card is an unmatched pick that’s made even better with an incredible 18 month 0% intro APR offer on balance transfers and purchases. Read Full Review
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: 0%, 18 months
Balance Transfers: 0%, 18 months
Ongoing APR
14.74% - 24.74%, variable
Welcome Bonus
N/A
Highlights
- No Late Fees, No Penalty Rate, and No Annual Fee... Ever
- 0% Intro APR on balance transfers for 18 months from date of first transfer. All transfers must be completed in first 4 months. After that, the variable APR will be 14.74% - 24.74%, based on your creditworthiness.
- 0% Intro APR on purchases for 18 months from date of account opening. After that, the variable APR will be 14.74% - 24.74%, based on your creditworthiness.
- If you transfer a balance with this offer, after your 0% Intro purchase APR expires, both new purchases and unpaid purchase balances will automatically accrue interest until all balances, including your transferred balances, are paid in full
- There is a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater.
- The standard variable APR for Citi Flex Plan is 14.74% - 24.74%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
- Stay protected with Citi® Quick Lock and $0 liability on unauthorized charges
Citi Simplicity® Card - No Late Fees Ever is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
Great for: Balance transfers and cash back
Rating image, 5.0 out of 5 stars.
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.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.
Bottom Line
Earn up to 2% on all purchases - 1% when you buy, and 1% when you pay the minimum each month. Add that to no annual fee and an 18 month 0% intro APR offer on balance transfers and this card is a winner. Read Full Review
Rewards
2% cash back: 1% when you buy plus 1% as you pay
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: 0%, 18 months
Ongoing APR
13.99% – 23.99%, variable
Welcome Bonus
N/A
Highlights
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
- To earn cash back, pay at least the minimum due on time.
- Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness.
- Balance Transfers do not earn cash back.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
- The standard variable APR for Citi Flex Plan is 13.99% – 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
Great for: Bonus cash back
Rating image, 4.5 out of 5 stars.
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.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.
Bottom Line
Includes a market-leading bonus in the no-annual fee category and a flexible cash rewards program that enables you to earn premium cash back in a category of your choice. Plus, the long intro APR offer makes this card a standout among its peers. Read Full Review
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.
Annual Fee
$0
Intro APR
Purchases: 0%, 12 billing cycles
Balance Transfers: 0% Intro APR for 12 billing cycles for any balance transfers made in the first 60 days
Ongoing APR
13.99% - 23.99% Variable
Welcome Bonus
$200 after making at least $1,000 in purchases within 90 days of account opening
Highlights
- No annual fee
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
- Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases
- 0% Introductory APR for 12 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 13.99% - 23.99% Variable APR will apply. A 3% fee (min $10) applies to all balance transfers
- No expiration on rewards
- If you're a Preferred Rewards member, you can earn 25% - 75% more cash back on every purchase
- Contactless Cards - The security of a chip card, with the convenience of a tap
Great for: Long 0% intro APR for balance transfers and purchases
U.S. Bank Visa® Platinum Card
Rating image, 5.0 out of 5 stars.
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.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.
Bottom Line
With a 20 billing cycle intro APR offer for both balance transfers and purchases, this is one of the best low interest credit cards on the market. Read Full Review
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: 0%, 20 billing cycles
Balance Transfers: 0%, 20 billing cycles
Ongoing APR
13.99% - 23.99%, variable
Welcome Bonus
N/A
Highlights
- 0% Intro APR on purchases and balance transfers for 20 billing cycles. After that, a variable APR currently 13.99%-23.99%.
- No Annual Fee.
- Fraud protection detects and notifies you of any unusual card activity.
- Free TransUnion® Credit Score when you enroll in Online Banking.
- Choose your payment due date.
- Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your U.S.Bank Visa® Platinum Credit Card. Certain terms, conditions, and exclusions apply.
Great for: Unlimited cash back
Capital One® Quicksilver® Cash Rewards Credit Card
Rating image, 4.5 out of 5 stars.
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.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.
What We Like About The Card
This may be the most versatile and flexible cash-back card on the market. 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
Rewards
Unlimited 1.5% cash back, no minimum to redeem
Annual Fee
$0
Intro APR
Purchases: 0%, for 15 months
Balance Transfers: N/A
Ongoing APR
15.49% - 25.49%, variable
Welcome Bonus
$150 after spending $500 within 3 months
Highlights
- One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases for 15 months; 15.49%-25.49% variable APR after that
- 15.49%-25.49% variable APR on balance transfers; No transfer fee
- Pay no annual fee or foreign transaction fees
Capital One® Quicksilver® Cash Rewards Credit Card is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
Great for: Balance transfers and purchases
Wells Fargo Platinum card
Rating image, 4.5 out of 5 stars.
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.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.
Bottom Line
A clear standout card in its category with a long 0% intro APR for 18 months on both qualifying balance transfers and purchases, no annual fee, and a FICO® Score for free. Read Full Review
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: 0%, 18 months
Balance Transfers: 0%, 18 months on qualifying balance transfers
Ongoing APR
16.49% - 24.49%, variable
Welcome Bonus
N/A
Highlights
- Pay down balances instead of interest with Wells Fargo’s longest intro APR
- $0 Annual Fee
- Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card
- Easy access to your FICO® Credit Score with Wells Fargo Online®
- Zero Liability protection for promptly reported unauthorized transactions
- Convenient tools to help create a budget and manage your spending with My Money Map
- Select "Apply Now" to learn more about the product features, terms and conditions
Wells Fargo Platinum card is temporarily unavailable on The Ascent. All information was collected independently from the issuer. Some items may be out of date.
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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 cards 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.
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 charge no interest on purchases or balance transfers. This lasts only for a certain period of time, typically ranging from 12 to 21 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 does interest work for credit cards?
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% 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 |
Note: Figures rounded to the nearest dollar.
Here's the takeaway: After six months, the cardholder with a 0% 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.
Tips for using 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.
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.
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% APR credit card, consolidating debt with a balance transfer can be an effective way to pay down debt quickly and save money on interest.
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.
FAQs
-
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.
- Promotional 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 21 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 around 10% or so, which is in line with rates on two-year personal loans.)
A zero interest credit card 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.
- Promotional 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 21 months. The advantage to these cards is that they offer a super-low APR, although only for a short period of time.
-
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 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.
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Given that most 0% APR credit cards 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.
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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 within 15 or 18 months.
| Card | Rating | Great For |
|---|---|---|
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Rating image, 4.5 out of 5 stars.
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Great For: Long intro 0% APR on purchases and balance transfers |
|
|
Rating image, 4.5 out of 5 stars.
|
Great For: Long balance transfer and purchase offer |
|
|
Rating image, 5.0 out of 5 stars.
|
Great For: Balance transfers and cash back |
|
|
Rating image, 4.5 out of 5 stars.
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Great For: Bonus cash back |
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Rating image, 5.0 out of 5 stars.
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Great For: Long 0% intro APR for balance transfers and purchases |
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Rating image, 4.5 out of 5 stars.
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Great For: Unlimited cash back |
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Rating image, 4.5 out of 5 stars.
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Great For: Balance transfers and purchases |
About the Author
Co-founder and personal finance industry analyst for The Ascent by The Motley Fool, a new online publisher of the year award recipient in 2017. Prior to that, he was a Director for The Motley Fool. He has 11 years of finance experience under his belt and has published over 800 educational and research articles that have appeared on websites such as MSN, AOL, and Yahoo Finance. He holds an MBA in Finance from George Washington University.
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