Low Interest Credit Cards

Low Interest Credit Cards

A low interest credit card is recommended over other card benefits if you would like to finance your holiday shopping or a large purchase, or you desire to use a balance transfer to pay off higher interest loans.

Low interest cards can be a great deal, because in addition to long-term low rates, many offer a great introductory rate, typically ranging from 0% to 4.9% annually. The introductory rate may apply to balance transfers, purchases, or both, and it will extend from six months to more than twelve months. After the introductory period, the interest rate on low APR cards typically ranges from 7.25% to around 14.99%.

When you compare low APR credit cards, read the terms and conditions carefully and then weigh all of the above factors to find the card that best fits your needs. To qualify for a lowest interest credit card, you will generally need good to excellent credit rating. However, regardless of your situation, you can still find a low rate credit card that fits your profile. You may even find that your existing card company will lower the rate on the card you have, rather than lose you as a customer.

There are two types of rates on low interest credit cards: “fixed” APR and “variable” APR. If your low interest card has a fixed APR, your rate will, for the most part, remain the same. The credit card company may still change the fixed APR rate, but they will notify you in advance. With a variable APR, the rate on your low interest card is typically linked to the national prime rate; when it changes, your rate may too. If you plan on carrying a balance, a fixed rate is often the best way to go. If you want to transfer a balance, see our collection of cards with 0 APR introductory rates on balance transfers.

If you plan to regularly pay off your balance before the end of the month, you may instead be interested in looking at rewards credit cards that charge slightly higher interest rates, but offer incentives, such as cash back, or airline miles. We also feature a selection of business credit cards to choose from in each card category.