Below are our staff picks for 2023's best low-interest credit cards. These cards feature the lowest annual percentage rate (APR) on purchases and transfers for qualified applicants.
Written by: Aaron Crowe
Aaron Crowe
Aaron Crowe is a seasoned journalist who specializes in personal finance writing and editing. Aaron has written for a variety of websites, including AOL, Learnvest, U.S. News & World Report, Wells Fargo, WiseBread, AARP, and many insurance and investing sites. He is a self-proclaimed storyteller who enjoys explaining — in layman's terms — personal finance and how it affects consumers’ lives. Aaron has several years’ experience working as both a reporter and editor in newspapers where he won several awards, including a Pulitzer Prize.
Lillian brings more than 30 years of editing and journalism experience. She has written and edited for major news organizations, including The Atlanta Journal-Constitution and the New York Times, and she previously served as an adjunct instructor at the University of Florida. Today, she edits all CardRates content for clarity, accuracy, and reader engagement.
With more than a decade of experience as a content manager and marketer, Ashley has specialized in finance coverage since 2015. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media campaigns. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among others.
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.
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.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
Every $1 you earn in cash back is $1 you can redeem.
Get a 0% intro APR for 15 months on purchases. Then 16.49% to 27.49% Standard Variable Purchase APR applies, based on credit worthiness.
Get a 0% intro APR for 15 months on Balance Transfers and Convenience Checks that post to your account within 90 days of account opening. After this time, the Variable Regular APR will apply to your balance.
Our lowest-rate card: Pay less in interest if you carry a balance from month to month
Travel benefits include Auto Rental Coverage, Travel Accident Insurance, Baggage Delay and Reimbursement, and Trip Cancellation and Interruption Coverage
No annual fee or foreign transaction fees
This offer is only open to members of military-affiliated groups and their families
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.
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.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
Every $1 you earn in cash back is $1 you can redeem.
No annual fee.
Click through to Discover’s website to see terms and conditions.
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. Just a dollar-for-dollar match.
Earn cash back on your next road trip with 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
Every $1 you earn in cash back is $1 you can redeem.
Get a 0% intro APR for 15 months on purchases. Then 16.49% to 27.49% Standard Variable Purchase APR applies, based on credit worthiness.
Start off strong with 0% Intro APR for 18 months from account opening on purchases and balance transfers. A variable APR of 19.49% - 28.24% on balance transfers and purchases after the introductory period ends.
Lower your interest rate by 2% each year. Automatically be considered for an APR reduction when you pay on time, and spend at least $1000 on your card by your next account anniversary.
Raise your credit limit. Get an automatic, one-time review for a higher credit limit when you pay on time, and spend $500 in your first six months.
All for no annual fee - You won't have to pay an annual fee for all the great features that come with your Slate Edge℠ card
Keep tabs on your credit health - Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more
DCU’s Visa Platinum Credit Card offers a rate lower than you’ll find on most other bank or store cards. With one of the lowest rates in the nation, this is the perfect starter card for anyone trying to establish credit or save on interest with no-fee balance transfers.
Embedded EMV chip - this tiny chip protects your information in a big way.
Mobile Wallet Compatible - works with Apple Pay®, Google Pay™, and Samsung® Pay.*
Optional overdraft protection - We’ll transfer the balance of any overdrafts from your DCU checking account to your DCU Visa Platinum account up to your available limit.
No annual fee, balance transfer fee, or cash advance fees
Must meet eligibility criteria to join Digital Federal Credit Union
Earn 1.5% cash back on all purchases with no caps or limits. PenFed Honors Advantage Members earn 2% cash back on all purchases.
$100 bonus offer statement credit when you spend $1,500 in the first 90 days of account opening.
Introductory Balance Transfer APR for 12 months, 3% fee applies to each transaction. Subject to credit approval.
Your PenFed signature card provides a complimentary concierge service that can help you enjoy the things you love. Simply pick up the phone to call Visa Signature Concierge.
Get our Navy Federal More Rewards American Express® Card, and you can earn 20,000 bonus points (a $200 value) when you spend $2,000 within 90 days of account opening.
Earn 3X points at restaurants, food delivery, supermarkets, gas and transit, and 1X points on everything else
No annual fee, no balance transfer fee, no foreign transaction fees, and no cash advance fees
Points can be redeemed for cash, travel, gift cards, and merchandise
Cardholders get roadside assistance plus up to 25% off car rentals with car rental loss & damage insurance included
Must be a member of Navy Federal Credit Union to qualify - if you're already a member, you can see if you prequalify before you submit an application
UNLIMITED BONUS: Only Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.
Automatically earn unlimited 1.5x Miles on every dollar of every purchase - with no annual fee.
Redeem Miles to pay any part of your monthly bill, including your minimum payment.
Turn Miles into cash in any amount, any time. Or redeem as a statement credit for travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more with no blackout dates. However you redeem, Miles keep the same value. And Miles never expire.
0% intro APR for 15 months on purchases. Then 16.49% to 27.49% Standard Variable Purchase APR will apply.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
Earn a one-time $200 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
$0 annual fee and no foreign transaction fees
Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
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 for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening. After that the variable APR will be 17.49% - 28.24%, 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 5% 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.
Earn 20,000 bonus points when you spend $1,000 in the first 90 days of account opening. That's a $200 value redeemable toward merchandise, gift cards, cash back, travel, and more. Points never expire.
Earn 4X points on dining, takeout, and restaurant delivery
Earn 2X points at grocery stores, grocery delivery, streaming services, gas stations, and EV charging stations -- all other purchases earn 1 point per $1
Enjoy a 0% Intro APR on purchases and balance transfers for the first 12 billing cycles. After that, a variable APR applies
$15 credit for annual streaming service purchases such as Netflix, Apple TV, Spotify, and more.
Get unlimited 3% Daily Cash back on everything you buy from Apple and other select merchants when you use Apple Card with Apple Pay
Get unlimited 2% Daily Cash back when you use your iPhone or Apple Watch to pay with Apple Card
Pay for your new Apple products over time, interest‑free with Apple Card Monthly Installments
With advanced security technologies like Face ID, Touch ID, and unique transaction codes, Apple Card with Apple Pay is designed to make sure you're the only one who can use it
The only credit card made of titanium — a sustainable metal known for its beauty and durability
No annual fees, no foreign transaction fees, or late fees. No fees, period.
Get a 0% intro APR for 15 months on balance transfers and convenience checks that post to your account within 90 days of account opening. After this time, the variable regular APR will apply to these introductory balances.
5% cash back on your first $3,000 in combined gas station and military base purchases yearly
2% cash back on your first $3,000 in grocery purchases yearly plus unlimited 1% cash back on all other qualifying purchases
Cardholders receive auto rental coverage, travel accident insurance, baggage delay and reimbursement, and more
$0 Annual Fee
This card is only open to current and former military and their spouses
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! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
No credit score required to apply.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
No annual fee and build your credit with responsible use.
0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.49% - 26.49% applies.
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! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
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.
No credit score required to apply.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
No annual fee and build your credit with responsible use.
0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.49% - 26.49% applies.
Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
Round-the-clock monitoring for unusual credit card purchases
With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
Earn 1X points per dollar spent with no limit on the amount of rewards you can earn; rewards expire after 4 years.
Deposit at least $200 into your membership savings account (before submitting your application) to back your spending. If approved, we’ll hold your deposit in your account as your card’s credit limit. As you use your card, you’ll earn rewards just like any other credit card, while also earning dividends on your deposit—just like any other savings account.
No annual fees, no balance transfer fees, no foreign transaction fees, and no cash advance fees.
After just 3 months, you could be eligible for an upgrade. If you qualify, we’ll provide you with additional credit to allow for spending beyond your deposit. Then, at 6 months, we’ll review your account monthly to see if you’re eligible to have your hold removed and be upgraded to a cashRewards unsecured card.
Rental car coverage
Must be a member of Navy Federal Credit Union to qualify
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 18.49% - 28.49%, based on your creditworthiness.
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.
No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
No Annual Fee
Citi will only issue one Citi Custom Cash℠ Card account per person.
0% Introductory APR for 21 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 15.49% - 25.49% Variable APR will apply. A 3% fee applies to all balance transfers.
No annual fee.
No penalty APR. Paying late won't automatically raise your interest rate (APR). Other account pricing and terms apply.
When handled responsibly, a credit card can help you build your credit history, which could be helpful when looking for an apartment, a car loan, and even a job. Access your FICO® Score for free within Online Banking or your Mobile Banking app.
Contactless Cards - The security of a chip card, with the convenience of a tap.
This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Enjoy 6.5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
After your first year or $20,000 spent, enjoy 5% cash back on Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.49% - 28.24%.
No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
0% Introductory APR for 21 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 15.49% - 25.49% Variable APR will apply. A 3% fee applies to all balance transfers.
No annual fee.
No penalty APR. Paying late won't automatically raise your interest rate (APR). Other account pricing and terms apply.
Access your FICO® Score for free within Online Banking or your Mobile Banking app.
Contactless Cards - The security of a chip card, with the convenience of a tap.
This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®
Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
Round-the-clock monitoring for unusual credit card purchases
With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
Redeem points for cash back, gift cards, travel and more - your points don't expire as long as your account is open
Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards®
Choose your own credit line based on how much money you want to put down as a security deposit.
Initial deposits can be from $200 to $3,000. You can increase your credit line at any time by adding additional money to your security deposit, up to $3,000.
After 9 months, we review your account for a credit line increase. No additional deposit required!
Secured Credit Cards are great for people looking to build or rebuild credit and are available to people with all kinds of credit backgrounds.
Unlike a debit card or a pre-paid card, it helps build your credit history. We report your payment history to all three major credit-reporting agencies.
$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.
If you're a Preferred Rewards member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
No annual fee and no expiration on rewards.
0% Introductory APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 17.49% - 27.49% Variable APR will apply. A 3% fee applies to all balance transfers.
Contactless Cards - The security of a chip card, with the convenience of a tap.
This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
$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.
No annual fee and no expiration on rewards.
0% Introductory APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 17.49% - 27.49% Variable APR will apply. A 3% fee applies to all balance transfers.
When handled responsibly, a credit card can help you build your credit history, which could be helpful when looking for an apartment, a car loan, and even a job. Access your FICO® Score for free within Online Banking or your Mobile Banking app.
Contactless Cards - The security of a chip card, with the convenience of a tap.
This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Review Breakdown: Best Low APR Credit Cards
Finding the lowest interest rate on a credit card can be tricky, especially when low-interest offers mix an ongoing APR rate with a special introductory rate. Below is a simply summary table to help you better determine the best low interest credit card for your financial needs.
Having one of the best low APR credit cards can make carrying a balance on a credit card 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 regularly don’t pay your credit card off when the bill comes due, then a low interest credit card can save you a lot of money.
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 excellent credit. 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.
Rates can change all of the time, but basically, a good APR for a credit card is 14% and lower. The average credit card interest rate in the United States is 14.52%, according to the Federal Reserve.
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 it 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 interest rate to consumers with excellent or at least good credit scores. Rates can be around 12%.
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.
Introductory offers providing 0% APR will revert to a higher APR at the end of the offer period.
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 to consolidate your debt by moving it from a high-interest card to one with 0% interest.
How often the interest rate changes on a credit card is also important. A low fixed rate is best. This means the rate stays the same and won’t go up even if you’re late making a payment.
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 Low APR Credit Card?
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. A low APR business credit card may use your personal credit score to determine approval.
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, because these institutions generally offer lower rates and fees than most big banks.
4. What is a Low Introductory APR?
A low introductory APR is a low interest rate, usually 0%, that runs for a certain amount of time, usually six to 15 months.
A low introductory APR can be used to consolidate credit card debt by transferring balances from high-interest cards or can be a way to make eligible purchases without paying interest on them.
The key 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 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 or middling credit score.
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.
APRs can be all over the map for credit card offers. The best ones that we recommend range from 9.99% to 17.99%. 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. Which Card Issuer Offers the Lowest APR Credit Card?
Of the cards we recommend, the card issuer with the lowest APR card is Applied Bank.
The Applied Bank® Secured Visa® Gold Preferred® Credit Card has a low fixed APR that won’t go up even if you’re late making a payment. One of the best things about it is that applicants with poor, fair, limited, or damaged credit can be approved for the card.
It’s a secured credit card, meaning your credit limit is secured by a refundable security deposit you pay upfront. Your charged balance can be as high as the credit limit you’ve created by making the deposit. Most cards allow you to make additional deposits anytime to increase your credit limit.
The interest rate is low because you’re basically paying a deposit to give yourself credit. If you don’t pay your credit card bill, the deposit can be used to pay the lender. The drawback of this card, however, is that it does not offer cardholders a grace period — purchases begin accruing interest the day they’re made.
But why pay a security deposit so you can use a credit card? Why not just use that money to buy what you were going to buy with a credit card?
Because if you have fair or bad credit, a secured credit card allows you to improve your credit score by using it and making payments on time. Your payments are reported to the three national credit bureaus, which should improve your score.
8. 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 14.52%. Find a low interest card at a rate lower than 14.52%, 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.
9. 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 go up to about 13-23%, depending 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.
10. So 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 low rate credit card you’re looking for, other things to look for include:
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 that doesn’t change. Rewards or 0% intro rates may not be offered on low APR credit cards with a low interest rate.
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.
11. 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.
But if that doesn’t work for you, then switching to a credit card with a lower rate will save you money.
Here’s an example: Suppose you owe $3,000 on a credit card that you’re paying 15% interest on. If your goal is to pay off the balance in a year, and you don’t add any more debt to it, your monthly payment will be $271. The interest you’ll pay over that year totals $249.
Now drop the interest rate to 10%. Two great things happen: Your monthly payment drops to $264 and the overall interest you pay in a year falls to $165.
That’s $84 saved in interest. But remember that your monthly payment also dropped, by $7 per month, or $84 per year. That adds up to $168 saved when added to the interest saved.
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.
12. 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.
13. Do Secured Cards Offer Low APRs?
Yes, secured cards generally offer low APRs. But not all secured cards have low APRs.
Some, like the Applied Bank® Secured Visa® Gold Preferred® Credit Card and 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.
14. Do Credit Unions Offer Low APR Cards?
Compared to traditional bank cards, credit union cards often offer lower fees and interest rates. Why? Because credit unions pass their profits to members in the form of low interest rates and low fees.
Credit union cards work just like other credit cards. They run on major networks, including Visa and Mastercard, and your credit card payments will be reported to the credit bureaus.
Federal law restricts credit unions from charging more than 18% interest on loans, and that applies to credit cards too. The average interest rate of a credit union credit card is 11.27%, compared to 12.61% for bank credit cards, according to the National Credit Union Administration.
15. 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.
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About the Author
Aaron Crowe
Finance Expert
Aaron Crowe is a seasoned journalist who specializes in personal finance writing and editing. Aaron has written for a variety of websites, including AOL, Learnvest, U.S. News & World Report, Wells Fargo, WiseBread, AARP, and many insurance and investing sites. He is a self-proclaimed storyteller who enjoys explaining — in layman's terms — personal finance and how it affects consumers’ lives. Aaron has several years’ experience working as both a reporter and editor in newspapers where he won several awards, including a Pulitzer Prize.
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