With good to excellent credit, you have a higher chance of getting a below-average credit card APR. While you should strive to pay off your balance in full each month, a low APR can be helpful if an emergency or life event necessitates carrying a balance for a while. Here are our some of Finder’s favorite credit cards with low interest.
To select our top picks, we compared credit cards on the market with low-interest rates as well as other card features important to consumers looking for such a card. Features we compared include annual fees, introductory APRs, rewards, balance transfer capabilities, and the type of revert APR. We singled out cards that excelled in one or more of these categories for our top list.
What’s changed in 2022?
We’ve moved the Citi® Diamond Preferred® Card onto this list. At the time of this writing, the card still an excellent intro APR on purchases and balance transfers, as well as a potentially solid ongoing APR.
What are the best low-APR credit cards?
You’ll typically find the lowest interest rates with credit unions. With major credit card providers, you’ll likely receive a purchase and balance transfer APR of at least 14% — potentially much higher.
The following cards are market-leading choices for a low APR.
This is a secured card, meaning you have to put down a secured deposit to use the card. Despite that, it has one of the lowest interest rates you can find in any card at 9.99%% fixed. The card also reports to Experian, Equifax and TransUnion, which makes it a decent starter credit card to build your credit while paying low interest rates.
Pros
No credit check. Reports to Equifax, Experian and TransUnion
Wells Fargo's renewed focus on credit cards includes the incredibly potent Wells Fargo Reflect Card. It one-ups the Citi Diamond Preferred by offering a full 18 months intro period on purchases and a full 18 months on balance transfers, while also sporting a potentially lower ongoing APR.
Pros
Intro APR. Get a 0% intro APR on purchases and balance transfers for the first 18 months, then 14.49% to 26.49% variable. The closest competitor card offers 18 months of 0% intro APR period. Two months may not seem like much, but if you're paying off a larger balance, it could make a difference.
No annual fee. You won't pay an annual fee for the life of the card.
No penalty APR. If you miss a payment, U.S. Bank won't impose a penalty APR. Other cards often impose a penalty APR of up to 32% and may cancel any 0% intro APR offers. That's one less thing to worry about with this card, however.
Cons
No rewards program. You get a long intro APR period, but you don't get to earn any rewards.
Foreign transaction fees. Transactions made abroad or online with foreign merchants will cost you 3% of the amount.
Annual fee
$0
Purchase APR
0% intro for the first 18 months (then 14.49% to 26.49% variable)
Balance transfer APR
0% intro for the first 18 months (then 14.49% to 26.49% variable)
Rewards
x n/a
Pros
Intro APR. Get a 0% intro APR on purchases and balance transfers for the first 18 months, then 14.49% to 26.49% variable. The closest competitor card offers 18 months of 0% intro APR period. Two months may not seem like much, but if you're paying off a larger balance, it could make a difference.
No annual fee. You won't pay an annual fee for the life of the card.
No penalty APR. If you miss a payment, U.S. Bank won't impose a penalty APR. Other cards often impose a penalty APR of up to 32% and may cancel any 0% intro APR offers. That's one less thing to worry about with this card, however.
Cons
No rewards program. You get a long intro APR period, but you don't get to earn any rewards.
Foreign transaction fees. Transactions made abroad or online with foreign merchants will cost you 3% of the amount.
Annual fee
$0
Purchase APR
0% intro for the first 18 months (then 14.49% to 26.49% variable)
Balance transfer APR
0% intro for the first 18 months (then 14.49% to 26.49% variable)
The Discover it® Cash Back offers one of the lowest potential ongoing APRs among Cash back rotating bonus category cards. Depending on your credit score, you could end up with an interest rate of 12.74% variable. This card also offers 15 months intro period on purchases and a full 15 months on balance transfers, making it an overall great value package.
Pros
Rewards. Great cash back in rotating categories. Earn 5% cash back on the first $1,500 you spend on purchases each quarter in eligible rotating categories, such as at gas stations, restaurants, Amazon.com, grocery stores and wholesale clubs. Earn 1% cash back after you've hit the spending cap each quarter, and on all other purchases.
Intro APR. 0% for 15 months following your account opening on purchases and balance transfers. After that, your purchase and balance transfer APR will be between 12.74% to 23.74% variable. This is an above-average intro APR when compared to its competitors.
Cashback match. Discover will match all the cash back you have earned at the end of your first year.
Cons
Balance transfer limitations. You must complete your balance transfers until a specific date to use the 0% intro APR period.
Cashback categories. You don't know what the 5% cashback categories will be until the start of each year.
Annual fee
$0
Purchase APR
0% intro for the first 15 months (then 12.74% to 23.74% variable)
Balance transfer APR
0% intro for the first 15 months (then 12.74% to 23.74% variable)
Welcome Offer
Discover will match cash back earned at the end of your first card year
Rewards
5% cash back
Pros
Rewards. Great cash back in rotating categories. Earn 5% cash back on the first $1,500 you spend on purchases each quarter in eligible rotating categories, such as at gas stations, restaurants, Amazon.com, grocery stores and wholesale clubs. Earn 1% cash back after you've hit the spending cap each quarter, and on all other purchases.
Intro APR. 0% for 15 months following your account opening on purchases and balance transfers. After that, your purchase and balance transfer APR will be between 12.74% to 23.74% variable. This is an above-average intro APR when compared to its competitors.
Cashback match. Discover will match all the cash back you have earned at the end of your first year.
Cons
Balance transfer limitations. You must complete your balance transfers until a specific date to use the 0% intro APR period.
Cashback categories. You don't know what the 5% cashback categories will be until the start of each year.
Annual fee
$0
Purchase APR
0% intro for the first 15 months (then 12.74% to 23.74% variable)
Balance transfer APR
0% intro for the first 15 months (then 12.74% to 23.74% variable)
Welcome Offer
Discover will match cash back earned at the end of your first card year
Even if you need a secured card to rebuild your credit, you don't have to pay an exorbitant interest rate. The DCU Visa® Platinum Secured Credit Card is a no-annual-fee option that offers a 12.25% variable APR on all balances for cardholders.
Pros
Low 12.25% variable APR. This purchase, balance transfer and cash advance APR is low among secured cards.
No annual fee. It’s a good choice for those looking for a low-cost credit card.
No fees for advances or balance transfers. Save more with free cash advances and balance transfers.
Cons
Required DCU membership. You must be a DCU member to apply for the card.
No rewards. Like many secured cards, this card offers no points or cash rewards.
Annual fee
$0
Purchase APR
12.25% variable
Balance transfer APR
12.25% variable
Welcome Offer
N/A
Rewards
None
Pros
Low 12.25% variable APR. This purchase, balance transfer and cash advance APR is low among secured cards.
No annual fee. It’s a good choice for those looking for a low-cost credit card.
No fees for advances or balance transfers. Save more with free cash advances and balance transfers.
Cons
Required DCU membership. You must be a DCU member to apply for the card.
No rewards. Like many secured cards, this card offers no points or cash rewards.
The U.S. Bank Visa® Platinum Card offers a superb 0% intro APR for 24 billing cycles from account opening on both purchases and balance transfers, then 15.99% to 25.99% variable.
Pros
Intro APR period. Make purchases and balance transfers at a 0% intro APR for your first 24 billing cycles of card membership. After the intro period expires, your rate reverts to variable 15.99% to 25.99%%.
Cell phone protection. Pay your cell phone bill with your card and get coverage for your phone against damage or theft up to $600, with a $25 deductible.
No annual fee. You won't pay an annual fee for the life of the card.
Cons
No signup bonus. Most credit cards offer a signup bonus after you meet specific criteria. Unfortunately, this card doesn’t have one.
Balance transfer limits. Make sure you transfer your balances within 60 days of card membership. Otherwise, you won’t get the intro APR period on balance transfers.
Potentially high APR. If you have a weak credit history, you may be given an interest rate up to 25.99% variable. That’s high, considering the average APR is around 16%.
Annual fee
$0
Purchase APR
0% intro for the first 24 billing cycles (then 15.99% to 25.99% variable)
Balance transfer APR
0% intro for the first 24 billing cycles (then 15.99% to 25.99% variable)
Welcome Offer
N/A
Rewards
None
Pros
Intro APR period. Make purchases and balance transfers at a 0% intro APR for your first 24 billing cycles of card membership. After the intro period expires, your rate reverts to variable 15.99% to 25.99%%.
Cell phone protection. Pay your cell phone bill with your card and get coverage for your phone against damage or theft up to $600, with a $25 deductible.
No annual fee. You won't pay an annual fee for the life of the card.
Cons
No signup bonus. Most credit cards offer a signup bonus after you meet specific criteria. Unfortunately, this card doesn’t have one.
Balance transfer limits. Make sure you transfer your balances within 60 days of card membership. Otherwise, you won’t get the intro APR period on balance transfers.
Potentially high APR. If you have a weak credit history, you may be given an interest rate up to 25.99% variable. That’s high, considering the average APR is around 16%.
Annual fee
$0
Purchase APR
0% intro for the first 24 billing cycles (then 15.99% to 25.99% variable)
Balance transfer APR
0% intro for the first 24 billing cycles (then 15.99% to 25.99% variable)
How do I choose the best low-interest credit card?
Picking the best low-interest credit card comes down to your personal financial needs. Here are some items to consider to help you choose:
Do you want an intro APR? If you plan on making a big purchase, an intro 0% APR can give you some time to repay that purchase interest free. These offer anywhere from six to 21 months from account opening to pay off your purchase or balance transfer.
Are rewards a big deal to you? A few low-interest cards offer rewards. However, they often don’t offer as many perks as you’d find with top rewards cards, such as statement credits or travel benefits.
What are the fees and penalties? If you worry about being able to always make your payments, you’ll want a card with low penalty fees and a low-penalty APR. Also make sure to check the card’s rates and fees for unexpected surprises. For example, just because a card has an intro APR on balance transfers doesn’t mean it comes without balance-transfer fees.
Pros and cons of a low-interest rate credit card
Pros
Savings. These cards can be a cheaper option as you pay less interest on purchases, which will help you save money and avoid falling into unmanageable debt.
Low fees. Many low-interest rate credit cards are paired with low fees, which can also help you save.
Credit card offers. Low-interest rate credit cards sometimes come with 0% promotions on purchases and balance transfers, allowing you to avoid interest altogether for an introductory period.
Cons
Less valuable if you pay your balance in full. If you pay your balance in full each month, you won’t have to worry about interest at all. This reduces the card’s overall value.
Less competitive rewards. Some low-rate credit cards come with rewards programs, but they usually have lower earn rates and bonus point offers than more expensive cards.
Fewer extra features. Low rates generally come with fewer extra features, unlike platinum cards which often come with concierge services and airport lounge passes.
Revert rates. If your card charges 0% on purchases for a promotional period, it will revert to a higher purchase rate after that.
What is a low interest rate?
As of this writing, the average credit card APR is around 17%. However, your assigned interest rate also depends on your creditworthiness. If you have average credit for example, it’s not uncommon to receive an APR several points higher than this.
However, if you have good or excellent credit, you might be able to get a below-average interest rate. The lower the APR, the higher the credit score you may need. APRs tend to bottom out at around 7% to 8%.
How is an interest rate calculated?
Interest rates are usually advertised based on the annual rate that applies to the account, also known as the Annual Percentage Rate (APR). However, interest on your account balance is typically calculated daily and then charged monthly on the statement due date. This means that for every day that you don’t make a payment, the interest charges will build up — or, compound. In this case, you’re essentially paying interest on interest.
Looking for a more in-depth example of how interest is calculated? Check out Finder’s credit card interest guide for more examples, calculations and data tables.
How much money can I save with a low-interest credit card?
Even a small difference in your credit card’s interest rate can save you a lot of money. Say you have a $2,000 balance on your credit card and you take six months to pay it off. With an interest rate of 20%, you’d pay $118.30 in interest on this debt.
But if you had a low-interest rate card that charged 12% APR, you’d pay $70.60 in interest over the same period of time. That’s a saving of $47.70 compared to the higher interest card. And the bigger your credit card debt, the bigger the difference gets. That’s why comparing interest rates before you apply for a new credit card can help you find one that’s affordable based on your needs.
How can I get a low-interest credit card?
Apply for a low-interest credit card like any other card, though you’ll have more options, and a better chance of being approved if you have a higher credit score.
To apply, visit the provider’s site, find the card you want, and select Apply. You can also peruse available cards using our card comparison tool. From there, you’ll need to provide details about yourself, such as your employment status, financial situation and estimated credit score.
In order to prove your identity, you’ll usually need your driver’s license. Most online credit card applications give you a response within 60 seconds of submitting the completed form.
Is a low-interest credit card right for me?
If you struggle to pay your balance in full by the due date on your statement, a low-interest credit card is your best bet for paying as little as possible for using the card. You could also benefit from a low-rate card if you’re a student or new to paying on plastic and want a cheaper credit card option.
Compare low-interest credit cards
Credit card APRs can vary widely depending on the issuer — from as low as around 8% to as high as 30%. Here are a few cards with below-average interest rates.
1 - 5 of 6
Bottom line
As best practice, avoid carrying a balance on a credit card. However, a low-interest credit card or card with an intro-APR offer can make for a great emergency card to help you avoid big interest on those unforeseen purchases.
If you’re looking for a card with more bells and whistles though, check out our guide to the best credit cards for a look at what’s available in the wide world of credit cards.
Kevin Joey Chen was a credit cards, banking and investments writer for Finder. His work and analysis have appeared on CNN, U.S. News & World Report, Business.com, Lifehacker and CreditCards.com.
Take a look at several of the best high-interest savings accounts to grow your funds with no risk. You’ll discover fee structures and what it takes to open an account.
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