Low APR Credit Cards

Having a low-APR credit card can make carrying a balance a lot less expensive, with lower interest charges you’ll pay over a year.

A better solution, of course, is to not carry a balance at all by paying the bill in full each month. But if you don’t typically pay your credit card off when the bill comes due, then a low-interest credit card can save you a lot of money.

So, how does a low-interest card work, and how can you get one? Exactly how much money can you really save in credit card interest? We answer those questions and more below:

1. What is a Low-APR Credit Card?

Low APR credit cards have low interest rates, which is what credit card issuers charge for allowing you to borrow money on credit and carry it over from month to month, which is called revolving credit.

Banks make money off customers who have a credit card balance. A low APR, which stands for annual percentage rate, can make it easy to carry over balances each month by giving you the idea that you’re not paying too much for the privilege. These costs add up over the course of a year, which we’ll get to later.

Credit cards with low interest rates are offered to lenders’ best customers, meaning people with good or excellent credit, typically regarded as having a credit score above 700. A high credit score means it’s less likely, in the eyes of creditors, that you won’t pay your bills on time or at all.

Nonpayment is the last thing they want. They want the money you owe on your credit cards, including interest due.

Credit card interest rates change all the time, but basically, the lower your rate, the better. The lowest rate on a credit card is 0%, which is only offered for a limited time as a way to entice new customers. Buying a big-ticket item such as a new bedroom set can make switching to a 0% APR introductory credit card worthwhile if you pay the balance off during the intro period.

2. How Does a Low-APR Credit Card Work?

A low APR card works about the same as any other card, except it offers a low ongoing interest rate to consumers with excellent or at least good credit scores.

They can also be as low as zero for a while, making them the lowest rate you’ll ever find. A 0% APR credit card charges no interest for a certain amount of time, usually six to 18 months. Some go as long as 21 months.

No interest is charged during this introductory period, including on new purchases, balance transfers, or both, depending on which card you get. This can give you more time to pay off credit card debt and consolidate your debt by moving it from a high-interest card to one with 0% interest.

Amount Transferred	3% Balance Transfer Fee	Interest Savings Over 12 Months
$1,000	$30	$200
$2,500	$75	$500
$5,000	$150	$1,000
$7,500	$225	$1,500
$10,000	$300	$2,000

How often the interest rate changes on a credit card is also important. A low fixed rate is best but are hard to find. This means the rate stays the same and won’t go up even if you’re late making a payment. Fixed rates can be found on cards available at some credit unions, but even those are rare.

A variable rate can change monthly, quarterly, or annually, depending on the card’s terms. It can also change if you miss a payment, known as the penalty APR.

3. How Do I Get a Card With a Low APR?

Having an excellent credit score is the easiest way to qualify for a low APR credit card, especially if it’s a 0% APR card. A good credit score of 670 to 739 can also get you approved for a 0% or other low APR card.

Generally, the higher your credit score, the longer the 0% introductory period will be. However, low-APR credit cards exist for consumers of all credit types, even those with poor credit.

Some secured credit cards have low ongoing APRs for those with bad credit, and even students with limited credit histories can qualify for low APR cards. You can even get a business credit card with a low APR. All of these cards can be obtained easily by applying online.

Be sure to check your local credit union for a credit card with a low APR as well. These institutions generally offer lower rates and fees than most big banks.

4. What is an Introductory APR?

An introductory APR is a low interest rate, usually 0%, that runs for a certain amount of time, usually six to 18 months. It is a promotion offered by card issuers to entice new applicants, typically those who need to finance a large purchase or transfer high-interest debt to a new card with 0% interest.

The key to making the most of this promotion is to pay off the balance before the introductory period ends. If you don’t, you’ll pay interest at the regular APR. That counteracts any savings from the interest-free period.

Being charged 0% interest doesn’t mean no payments are required during the intro period. You’ll still have to make the minimum payment on time or risk having the 0% APR canceled. A penalty APR may be charged if you don’t pay at least the minimum payment due.

5. How Does Your Credit Score Affect Your Credit Card’s Interest Rate?

Banks set interest rates based on the risk you pose. A higher credit score gives the lender confidence that you’ll make payments on time and thus pose less risk for them. They’ll generally give you a lower interest rate than someone with a low credit score.

Prime Plus (720 to 799)	Average Credit Card APR
Superprime (800+)	9.30%
Prime Plus (720 to 799)	14.50%
Prime (660 to 719)	18.10%
Near Prime (620 to 659)	20.50%
Subprime (580 to 619)	21.60%
Deep subprime (579 and under)	22.80%

Credit card issuers provide a range of potential interest rates with their offers, but they don’t say which score leads to a specific interest rate.

People with the highest credit scores pay the least to use a credit card. A 2019 report by the Consumer Financial Protection Bureau, or CFPB, found the average total interest paid by consumers increases with lower credit scores.

This is measured with an effective interest rate: the total amount of interest charged per year divided by the total balance at the end of the year. The highest credit scores lead to the lowest effective interest rates and vice versa.

6. What are the Different Credit Card APRs?

APRs can be all over the map for credit card offers. The lowest rates are offered to people with good credit.

There are five general APRs that all cards charge:

• Regular Purchase APR: This is the APR you’ll be charged for everyday purchases made with the card. You can avoid this interest charge altogether by paying your balance in full each billing cycle.
• Balance Transfer APR: The balance transfer APR is a promotional rate you’ll be charged on any balance that is transferred from another credit card account. The rate is usually 0% for up to 18 months, sometimes longer.
• Introductory APR: This is another promotional rate used by credit card issuers to entice new customers, but it applies to new purchases, not balance transfers. These are great for financing large eligible purchases with no interest for six months or more, after which the rate will change to the regular purchase APR.
• Cash Advance APR: This is the APR you’ll be charged if you withdraw cash from your credit line. It is almost always higher than your regular purchase APR, there is also a cash advance fee you may be charged, and your transaction will begin to accrue interest immediately because cash advances do not qualify for the grace period.
• Penalty APR: This is the rate you’ll be charged for making late payments. The average penalty APR is around 25%.

Carefully read the terms and conditions of each card offer you’re considering before applying.

7. What is a Good APR for a Credit Card?

A good APR for a credit card is anything lower than the average credit card APR, which is 24.20% as of March 2025. Find a card with a rate lower than that and you’re doing good.

Such cards may not have the benefits you’d expect from a rewards card, though if you have excellent credit, you should still be able to qualify for such cards. Low APR cards are meant to save you money when carrying a balance, and paying out high rewards is less likely with such cards.

8. What is the Cheapest Credit Card Interest Rate?

The cheapest credit card interest rate is 0%. It will be an introductory rate for a set number of months, usually six to 15, and then the rate will revert to the regular APR, which will depend on your creditworthiness.

But don’t expect to get that unless you have good credit, and preferably excellent credit. If you belong to a credit union, you may be able to find a low-rate card more easily since the main goal of credit unions is to help their members.

9. How Do I Choose the Best Low APR Credit Card?

The best low APR credit card may be one with a 0% intro rate, but be sure to check what the rate will rise to when the 0% offer ends.

Regardless of the type of credit card you’re looking for, things to look for include:

• No annual fee
• Rewards such as cash back, points, or miles
• The APR range
• Whether a security deposit is required
• Fees charged by the card, such as a cash advance fee, foreign transaction fee, late payment fee, or penalty APR

Some benefits you would expect from a credit card may not be as strong on a card with a low, regular APR. Rewards or 0% intro rates may not be offered on a card with a low ongoing APR.

If you don’t carry a balance often, then a 0% balance transfer card or one that doesn’t charge interest on purchases for a year may not appeal to you.

10. Can a Low Interest Credit Card Help Me Save Money?

Yes, paying lower interest on a credit card balance is a big way to save money. The biggest is to pay the balance off in full each month so that you’re not carrying a balance or any interest charges. This is also beneficial for your credit scores.

But if that doesn’t work for you, then switching to a credit card with a lower rate will save you money.

Use a debt repayment calculator to run the numbers for your revolving debt to get an idea of how much money you can save with a low-interest credit card.

11. What is a Variable APR?

A fixed interest rate normally doesn’t change, though it can with enough warning. Fixed-rate cards, however, aren’t offered as much by credit issuers because the CARD Act of 2009 required them to notify customers before changing rates.

In most circumstances, the higher rate can only be applied to purchases and other transactions after you get the notice, according to the CFPB.

A variable APR changes with the index interest rate, such as the prime rate published in The Wall Street Journal. The cardholder agreement on your card issuer’s website will detail how a card’s APR can change over time. Or you can request a copy from your credit card company.

A variable rate can change whenever the prime rate changes, but your rate could change in other circumstances too. Being 60 days late on a credit card payment can trigger an automatic rate increase and a drop in your credit score.

12. Do Secured Cards Offer Low APRs?

Yes, secured cards generally offer low APRs. But not all secured cards have low APRs.

Some, like the First Progress Platinum Prestige Mastercard® Secured Credit Card, have low APRs. Others, like the Bank of America® Customized Cash Rewards Secured Credit Card and Capital One Platinum Secured Credit Card, charge higher APRs.

You’re borrowing money from yourself by paying a refundable deposit on a secured card, so you should search for the lowest APR you can find.

13. How Do I Maintain a Low APR?

Having a low APR credit card is a good thing to have if you carry a balance, and it’s something you don’t want to lose. To make sure your balance stays low, there are a few things you can do.

• Pay your credit card bill on time. This will ensure you avoid a penalty APR. It’s usually much higher than your normal purchase APR. The CARD Act of 2009 makes it difficult for penalty rates to be charged, though they can still occur if you miss at least two payments. The law allows a penalty rate to be charged if you’ve missed payments for 60 days or more.
• Avoid variable rates. Staying away from variable-rate cards can also help you keep your APR low. Interest rates are low for now, but a card with a variable rate will go up whenever the prime rate moves up. A card with a fixed rate can make it easier to budget.
• Negotiate your rate. You can call your credit card company and ask for a lower APR. It will help to have been a customer for years and one who pays their bill on time, but it’s worth asking. Let them know of competing credit card offers from other banks with much lower APRs. Mention how you’d like to stay loyal to them and ask for a lower APR. If they say no or do not offer a low enough rate, ask to speak to a supervisor or someone in the retention department.
• Transfer your balance. Sometimes the best way to save on interest fees is to skip the middleman and simply transfer your balance to a new card that charges a lower interest rate. Be sure to read the fine print so you know what interest rate to expect once the introductory period ends. If it’s higher than your current rate, it may not be a great deal unless you make major progress on your balance during the 0% introductory period. Additionally, be aware of any applicable balance transfer fees. Most credit cards will charge a fee — typically 3% to 5% of the total transferred amount — to transfer a balance to the card. While this fee can be well worth it for a good 0% APR offer, crunch the numbers to see if it’s worth paying for lesser APR decreases.

Maintaining a low credit card APR is easy if you follow some basic steps and always use your card responsibly.

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The information on this page was reviewed for accuracy on March 11, 2025.

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