Best Low Interest Credit Cards

Credit cards can be a useful tool for managing your finances and building credit, but they can also come with high interest rates that can quickly become a burden. If you carry a balance on your credit card from month to month, those interest charges can add up, making it difficult to pay off your debt and get ahead financially.

That’s where low interest credit cards come in. These credit cards offer a lower interest rate than many other credit cards, which can save you money in the long run. Whether you’re looking to pay off existing debt or simply want to avoid high interest charges in the future, a low interest credit card can be a great option.

In this guide, we’ll take a look at some of the best low interest credit cards on the market. We’ll cover their features, benefits, and potential drawbacks, so you can make an informed decision about which one is right for you. Whether you’re looking for a card with a low introductory APR, a card with a low ongoing interest rate, or a card that offers other perks and rewards, we’ve got you covered. So let’s dive in and find the best low interest credit card for your needs.

What are low interest credit cards?

Low interest credit cards are credit cards that offer a lower interest rate than many other credit cards. Interest rates on credit cards can be quite high, often ranging from 15% to 25% or more. Low interest credit cards, on the other hand, typically offer an interest rate in the single digits or low teens. This can make a significant difference in the amount of interest you pay if you carry a balance on your credit card from month to month.

Low interest credit cards can be a good option for those who carry a balance on their credit card, as the lower interest rate can help save money on interest charges over time. Some low interest credit cards may also offer other perks, such as rewards programs or introductory offers on balance transfers or purchases.

It’s important to note that while low interest credit cards can be a useful tool, they may not be the best option for everyone. If you plan to pay off your balance in full each month, you may be better off with a credit card that offers rewards or other benefits, rather than focusing solely on the interest rate. Additionally, if you have a history of late or missed payments, you may not qualify for a low interest credit card, as these cards are often reserved for those with good credit.

Common low interest credit card features

Low interest credit cards typically have some common features that distinguish them from other types of credit cards. Here are some of the common features of low interest credit cards:

1. Low interest rates: As the name suggests, the primary feature of low interest credit cards is a lower interest rate than many other credit cards. The interest rate on a low interest credit card may be a fixed rate or a variable rate that is tied to a benchmark interest rate.
2. Introductory offers: Some low interest credit cards may offer introductory rates for a limited period of time. For example, a card may offer 0% APR on balance transfers or purchases for the first six to 18 months.
3. No annual fees: Many low interest credit cards do not charge an annual fee, which can help keep the overall cost of the card low.
4. Rewards programs: While not all low interest credit cards offer rewards programs, some do offer cash back, points, or other rewards for purchases made with the card.
5. Balance transfer options: Some low interest credit cards may allow you to transfer balances from other credit cards to take advantage of a lower interest rate. These cards may also offer a lower interest rate on balance transfers for a limited time.
6. Other perks and benefits: Depending on the card, low interest credit cards may offer other benefits such as travel insurance, purchase protection, extended warranties, and more.

It’s important to note that not all low interest credit cards will have all of these features, and the specific terms and conditions of a card can vary depending on the issuer. It’s important to carefully review the terms and conditions of any credit card before applying to make sure it’s the right fit for your needs.

Benefits of low interest credit cards

There are several benefits to using a low interest credit card, including:

1. Lower interest charges: The primary benefit of a low interest credit card is the lower interest rate. This can help save you money on interest charges if you carry a balance on your credit card from month to month.
2. Faster debt repayment: With a lower interest rate, more of your payment will go towards paying off the principal balance of your debt rather than just the interest charges. This can help you pay off your debt faster.
3. Improved credit score: If you have high credit card balances, it can negatively impact your credit score. By using a low interest credit card to pay down your debt, you can improve your credit utilization rate, which can help boost your credit score.
4. Rewards programs: While not all low interest credit cards offer rewards programs, some do offer cash back, points, or other rewards for purchases made with the card. This can help you earn rewards while still taking advantage of a lower interest rate.
5. Balance transfer options: Some low interest credit cards may allow you to transfer balances from other credit cards to take advantage of a lower interest rate. This can help you consolidate your debt and potentially save money on interest charges.
6. No annual fees: Many low interest credit cards do not charge an annual fee, which can help keep the overall cost of the card low.

Overall, the benefits of a low interest credit card can help you save money and manage your finances more effectively. However, it’s important to make sure you choose a card that fits your needs and usage habits.

Downsides of low interest credit cards

While there are certainly benefits to using a low interest credit card, there are also some potential downsides to be aware of, including:

1. Limited rewards: While some low interest credit cards do offer rewards programs, these rewards are often less generous than those offered by credit cards with higher interest rates. If you’re someone who frequently uses your credit card to earn rewards, a low interest credit card may not be the best option for you.
2. Stricter eligibility requirements: Because low interest credit cards are typically designed for those with good to excellent credit, they may be more difficult to qualify for than other types of credit cards. If you have a less than perfect credit score, you may not be able to get approved for a low interest credit card.
3. Higher fees: While many low interest credit cards do not charge an annual fee, they may charge other fees such as balance transfer fees or foreign transaction fees. These fees can add up over time and negate some of the savings you’re getting from the lower interest rate.
4. Less flexible terms: Low interest credit cards may have stricter terms and conditions than other types of credit cards. For example, they may have lower credit limits or fewer promotional offers. This can make it more difficult to use the card in a way that best fits your needs.
5. Temptation to carry a balance: While a low interest rate can be helpful if you do need to carry a balance on your credit card, it’s important to remember that carrying a balance can still be expensive over time. If you’re not careful, a low interest credit card can give you a false sense of security that leads you to carry a balance longer than you should.

Overall, while low interest credit cards can be a good option for some people, it’s important to carefully consider the potential downsides and make sure the card is the right fit for your financial situation.

How to choose the best low interest credit card

When choosing the best low interest credit card, there are several factors you should consider to make sure the card fits your needs and usage habits. Here are some steps to take when choosing the best low interest credit card:

1. Determine your credit score: Low interest credit cards are typically designed for those with good to excellent credit scores. Before you start shopping for a card, it’s important to know your credit score so you can focus on cards that you’re most likely to qualify for.
2. Consider your usage habits: Think about how you plan to use the credit card. Do you plan to carry a balance? Do you plan to use the card for everyday purchases to earn rewards? This will help you choose a card that fits your needs.
3. Compare interest rates: While all low interest credit cards have a lower interest rate than many other credit cards, the exact interest rate can vary. Look for a card with the lowest interest rate possible to help save you money on interest charges.
4. Look for introductory offers: Some low interest credit cards offer introductory rates for a limited period of time. If you’re planning to make a large purchase or transfer a balance, look for a card that offers an introductory rate that can help save you money.
5. Consider rewards programs: While not all low interest credit cards offer rewards programs, some do offer cash back, points, or other rewards for purchases made with the card. If earning rewards is important to you, look for a card that offers a rewards program that fits your needs.
6. Check for fees: While many low interest credit cards do not charge an annual fee, they may charge other fees such as balance transfer fees or foreign transaction fees. Make sure to check for any fees associated with the card and make sure they fit within your budget.
7. Read the terms and conditions: Finally, it’s important to carefully review the terms and conditions of any credit card before applying. Make sure you understand the interest rate, any fees associated with the card, and any other terms that may impact your use of the card.

By following these steps, you can choose the best low interest credit card for your needs and usage habits.

Pros and cons of low interest credit cards

Pros of low interest credit cards:

1. Lower interest rates: One of the most significant advantages of low interest credit cards is that they typically offer lower interest rates than other types of credit cards. This can help you save money on interest charges if you carry a balance on your card.
2. Less financial stress: By having a lower interest rate on your credit card, you can be less stressed about making payments on time and avoiding high interest charges that can add up quickly.
3. Longer promotional periods: Some low interest credit cards offer longer promotional periods for balance transfers or new purchases. This can help you save money on interest charges during that period.
4. Access to credit: By having a credit card with a lower interest rate, you can have access to credit when you need it, such as for unexpected expenses.

Cons of low interest credit cards:

1. Fewer rewards: Low interest credit cards may offer fewer rewards or cashback programs compared to credit cards with higher interest rates. If earning rewards is important to you, you may need to sacrifice some of those rewards to get a lower interest rate.
2. Stricter eligibility requirements: Low interest credit cards may have stricter eligibility requirements, making them harder to qualify for than other credit cards.
3. Limited features: Low interest credit cards may not offer the same features and benefits as other types of credit cards, such as travel rewards or exclusive access to events.
4. Fees: Although many low interest credit cards do not charge an annual fee, they may still charge other fees, such as balance transfer fees or foreign transaction fees. These fees can add up over time and offset the savings you’re getting from the lower interest rate.
5. Temptation to overspend: Having a lower interest rate may tempt you to overspend or carry a balance on your credit card longer than you should. This can lead to accumulating debt and higher interest charges over time.

Overall, low interest credit cards can be a great option for those who carry a balance on their credit cards, but it’s important to weigh the pros and cons to determine if it’s the right choice for your financial situation and needs.

How do low interest credit cards work?

Low interest credit cards work in much the same way as other credit cards, with the key difference being the interest rate charged on balances. Here’s how they work:

1. Interest rates: Low interest credit cards typically offer lower interest rates compared to other credit cards. This means that if you carry a balance on your card, you’ll pay less in interest charges each month.
2. APR: The annual percentage rate (APR) is the interest rate charged on your outstanding balance over the course of a year. Low interest credit cards typically have lower APRs than other credit cards, which can help you save money on interest charges.
3. Promotional offers: Some low interest credit cards offer promotional offers, such as 0% APR on balance transfers or new purchases for a limited period of time. This can help you save money on interest charges during that period.
4. Fees: Low interest credit cards may still charge fees, such as late payment fees, balance transfer fees, or foreign transaction fees. It’s important to review the terms and conditions of the card to understand what fees you may be charged.
5. Rewards: Some low interest credit cards may offer rewards programs, but they may not be as generous as other types of credit cards that charge higher interest rates.
6. Credit score: To qualify for a low interest credit card, you typically need to have a good to excellent credit score. This is because credit card companies want to minimize their risk of lending to someone who may not be able to repay the balance.

Overall, low interest credit cards can be a great option if you carry a balance on your credit card and want to save money on interest charges. However, it’s important to read the terms and conditions carefully to understand the interest rates, fees, and other features of the card to ensure it’s the right choice for your needs and financial situation.

How to compare the best low interest credit cards

When comparing the best low interest credit cards, there are several factors to consider to determine which one is the best fit for your financial needs and spending habits. Here are some key factors to consider when comparing low interest credit cards:

1. Interest rates: The interest rate is the most important factor to consider when comparing low interest credit cards. Look for cards with the lowest interest rates possible, and make sure you understand whether the rate is fixed or variable.
2. Promotional offers: Some low interest credit cards may offer promotional offers, such as 0% APR on balance transfers or new purchases for a limited period of time. Look for cards that offer these types of promotions, especially if you plan to transfer a balance from another card or make a large purchase.
3. Fees: Look at the fees associated with the card, such as annual fees, balance transfer fees, foreign transaction fees, and late payment fees. Choose a card with the lowest fees possible.
4. Credit score requirements: To qualify for a low interest credit card, you typically need to have a good to excellent credit score. Make sure you meet the credit score requirements before applying.
5. Rewards: Some low interest credit cards may offer rewards programs, such as cashback or points for purchases. If rewards are important to you, compare the rewards programs of different cards to see which one offers the best value.
6. Additional features: Some low interest credit cards may offer additional features, such as travel insurance, extended warranty coverage, or purchase protection. Consider which features are important to you and look for cards that offer them.
7. Customer service: Look for a credit card issuer with good customer service, including 24/7 customer support and a user-friendly website or mobile app.

By considering these factors, you can compare different low interest credit cards and choose the one that offers the best overall value for your needs. Make sure to read the terms and conditions carefully before applying for any credit card.

How are low interest credit cards used

Low interest credit cards are used in much the same way as other credit cards. You can use them to make purchases, pay bills, and withdraw cash from ATMs. Here are some tips for using a low interest credit card effectively:

1. Make payments on time: To avoid late payment fees and potential damage to your credit score, make sure you pay your credit card bill on time each month.
2. Pay more than the minimum: If you carry a balance on your card, aim to pay more than the minimum payment each month. This will help you pay off the balance faster and reduce the amount of interest you pay.
3. Avoid cash advances: Cash advances typically come with high interest rates and fees, so try to avoid using your low interest credit card for cash advances if possible.
4. Take advantage of promotional offers: If your low interest credit card offers a promotional offer, such as 0% APR on balance transfers or new purchases for a limited period of time, consider taking advantage of it. This can help you save money on interest charges during that period.
5. Keep track of your spending: To avoid overspending and accruing more debt, keep track of your spending and stay within your budget.
6. Review your statements: Review your credit card statements each month to ensure that there are no unauthorized charges or errors.
7. Use rewards wisely: If your low interest credit card offers rewards, make sure to use them wisely. Consider redeeming rewards for statement credits, merchandise, or travel to get the most value.

Overall, low interest credit cards can be a great tool for managing your finances and reducing the amount of interest you pay on your credit card balance. However, it’s important to use them responsibly and to pay attention to the terms and conditions of the card.

How to get the most out of a low interest credit card

To get the most out of a low interest credit card, here are some tips to follow:

1. Pay off your balance in full each month: This is the best way to avoid paying interest on your balance. If you’re able to do this, you’ll get the full benefit of the low interest rate without incurring any interest charges.
2. Take advantage of promotional offers: If your low interest credit card offers a promotional offer, such as 0% APR on balance transfers or new purchases for a limited period of time, take advantage of it. This can help you save money on interest charges during that period.
3. Avoid cash advances: Cash advances typically come with high interest rates and fees, so try to avoid using your low interest credit card for cash advances if possible.
4. Use rewards wisely: If your low interest credit card offers rewards, make sure to use them wisely. Consider redeeming rewards for statement credits, merchandise, or travel to get the most value.
5. Monitor your credit score: Using a low interest credit card responsibly can help improve your credit score over time. Keep an eye on your credit score and take steps to improve it if necessary.
6. Stay within your budget: It’s important to stay within your budget when using any credit card, including a low interest credit card. Don’t overspend just because you have a low interest rate.
7. Review your statements: Review your credit card statements each month to ensure that there are no unauthorized charges or errors.

Overall, the key to getting the most out of a low interest credit card is to use it responsibly, pay off your balance in full each month, and take advantage of any promotional offers or rewards programs that are available. By doing so, you can reduce the amount of interest you pay on your credit card balance and get the most value from your card.

Types of low interest credit cards

There are a few different types of low interest credit cards available. Here are some of the most common types:

1. Low ongoing interest rate credit cards: These credit cards offer a low interest rate on an ongoing basis, typically ranging from 8% to 15%. They’re a good choice if you’re looking for a credit card that you can use for everyday purchases and carry a balance from month to month.
2. 0% introductory APR credit cards: These credit cards offer a 0% introductory APR on purchases and/or balance transfers for a set period of time, usually between 6 and 18 months. After the introductory period ends, the interest rate will increase to the standard rate. These cards are a good choice if you have a large purchase or balance to pay off and want to avoid interest charges during the introductory period.
3. Balance transfer credit cards: These credit cards allow you to transfer existing balances from other credit cards to the new card, often with a low or 0% introductory APR for a set period of time. Balance transfer cards can be a good choice if you have high-interest credit card debt and want to consolidate it onto one card with a lower interest rate.
4. Low interest credit cards for fair credit: These credit cards are designed for people with fair credit scores (typically between 580 and 669) and offer a low interest rate on an ongoing basis. They can be a good choice if you’re working on improving your credit and need a credit card to help you do so.

Overall, the type of low interest credit card that’s best for you will depend on your individual needs and financial situation. It’s important to compare the features and benefits of different cards before choosing one to ensure that it’s the right fit for you.

Are there business low interest credit cards

Yes, there are business low interest credit cards available for small business owners. These credit cards are designed specifically for business use and often come with features that are tailored to the needs of business owners. Here are some examples of business low interest credit cards:

1. Capital One Spark Classic for Business: This card offers a low ongoing interest rate, no annual fee, and cash back rewards on every purchase.
2. American Express Blue Business Cash Card: This card offers a 0% introductory APR on purchases and balance transfers for the first 12 months, as well as cash back rewards on purchases.
3. Chase Ink Business Cash Card: This card offers a 0% introductory APR on purchases and balance transfers for the first 12 months, as well as cash back rewards on purchases.
4. Bank of America Business Advantage Cash Rewards Mastercard: This card offers a low ongoing interest rate, as well as cash back rewards on purchases.

Business low interest credit cards can be a good choice if you need to make business purchases and want to carry a balance from month to month. They can also help you manage cash flow and earn rewards on your business spending. As with any credit card, it’s important to compare the features and benefits of different cards before choosing one to ensure that it’s the right fit for your business.

The future of low interest credit cards

It’s difficult to predict the exact future of low interest credit cards, as the credit card industry is always evolving. However, there are a few trends that may shape the future of low interest credit cards:

1. Increasing competition: As more and more credit card issuers offer low interest credit cards, there may be increased competition to offer the lowest interest rates and best features. This could lead to more attractive offers for consumers.
2. Emphasis on responsible credit use: With a growing focus on financial literacy and responsible credit use, credit card companies may place a greater emphasis on educating consumers about how to use credit cards responsibly and avoid high interest rates.
3. Greater use of technology: As technology continues to evolve, credit card companies may use it to develop new features and benefits for low interest credit cards. For example, they may offer more personalized rewards programs or use artificial intelligence to help customers manage their spending and avoid overspending.
4. Changing economic conditions: Economic conditions can also impact the availability and terms of low interest credit cards. If interest rates rise, for example, credit card companies may need to adjust their rates and offers accordingly.

Overall, low interest credit cards are likely to remain a popular choice for consumers who want to avoid high interest charges and manage their credit card balances responsibly. As the credit card industry continues to evolve, it’s important for consumers to stay informed and compare different offers to ensure that they’re getting the best deal for their needs.

How to apply for a low interest credit card

Applying for a low interest credit card is a relatively straightforward process. Here are the general steps to follow:

1. Research and compare low interest credit cards: Use online resources, such as credit card comparison websites, to research and compare low interest credit cards. Look at factors such as the interest rate, annual fee, rewards program, and other benefits to determine which card is right for you.
2. Check your credit score: Your credit score will be a key factor in determining whether you’re approved for a low interest credit card. You can check your credit score for free through various online services. If your score is low, you may need to work on improving it before applying.
3. Gather your personal and financial information: Before applying for a low interest credit card, you’ll need to gather your personal and financial information. This typically includes your name, address, Social Security number, employment information, and income information.
4. Fill out the application: Once you’ve selected a low interest credit card and have all your information ready, you can begin the application process. This typically involves filling out an online application form, although some issuers may also accept paper applications.
5. Wait for a decision: After submitting your application, you’ll need to wait for a decision from the credit card issuer. This typically takes a few days to a few weeks. If you’re approved, you’ll receive your credit card in the mail along with information about your credit limit and other terms.

Overall, applying for a low interest credit card is a relatively simple process. However, it’s important to take the time to compare different cards and understand the terms and conditions before applying. By doing so, you can ensure that you’re getting the best deal and using your credit card responsibly.

Low interest credit card glossary

Here are some key terms related to low interest credit cards that you may come across:

1. Interest rate: The interest rate is the percentage of the balance that is charged as interest. For low interest credit cards, this rate is typically lower than the average credit card interest rate.
2. Annual percentage rate (APR): The APR is the total amount of interest and fees that are charged on an annual basis. This includes interest charges, annual fees, and other charges.
3. Introductory rate: Some low interest credit cards offer an introductory rate that is lower than the standard interest rate. This rate typically lasts for a set period of time, such as six months or a year.
4. Balance transfer: A balance transfer involves moving debt from one credit card to another. Many low interest credit cards offer balance transfer options with low or zero introductory interest rates.
5. Credit limit: The credit limit is the maximum amount of credit that a lender is willing to extend to a borrower. This limit is determined based on the borrower’s creditworthiness and other factors.
6. Rewards program: Some low interest credit cards offer rewards programs that allow cardholders to earn points, miles, or cash back on their purchases.
7. Late payment fee: A late payment fee is charged when a cardholder fails to make their minimum payment by the due date.
8. Annual fee: An annual fee is a charge that is assessed once per year for the use of a credit card. Some low interest credit cards may have an annual fee, while others do not.
9. Grace period: The grace period is the amount of time between the end of a billing cycle and the due date for the payment. During this time, interest is not charged on new purchases.

Understanding these terms can help you make informed decisions when selecting and using a low interest credit card.

Alternatives to low interest credit cards

If you’re looking for alternatives to low interest credit cards, here are some options to consider:

1. Balance transfer credit cards: Balance transfer credit cards allow you to transfer high-interest debt from one or more credit cards to a new card with a lower interest rate. Many balance transfer credit cards offer introductory interest rates as low as 0%, which can help you save money on interest charges.
2. Personal loans: Personal loans are a type of installment loan that can be used to consolidate debt or pay for large expenses. Personal loans typically have fixed interest rates and repayment terms, which can make them a more predictable and manageable way to borrow money.
3. Home equity loans or lines of credit: If you own a home and have equity built up, you may be able to use a home equity loan or line of credit to borrow money at a lower interest rate than credit cards. However, it’s important to remember that these loans are secured by your home, so you risk losing your home if you can’t repay the loan.
4. 0% APR credit cards: Some credit cards offer 0% APR introductory rates on purchases for a limited time. These cards can be a good option if you need to make a large purchase and want to pay it off over time without accruing interest.
5. Negotiating with creditors: If you’re struggling to make payments on your current debts, you may be able to negotiate with your creditors to lower your interest rates or monthly payments. This can help you save money and avoid the need to take out additional loans or credit cards.

Before choosing an alternative to low interest credit cards, it’s important to weigh the pros and cons of each option and consider your personal financial situation and goals.

FAQs about low interest credit cards