Low-Interest Credit Cards

Brendan Harkness

Brendan Harkness | Blog

Sep 20, 2018 | Updated Oct 27, 2018

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What is a low-interest credit card? Put simply, it’s a credit card with a lower-than-average interest rate. That could be all the way down to 0%, or just lower than the average — which is about a 17% APR.

Most credit cards have an APR range, like 14%–24%. The APR you get in these cases will depend on your creditworthiness: The better your credit, the lower your interest rates will be. For cards like these, there’s no guarantee that you’ll get the lower end of the APR range.

Some cards come with a specific APR rather than a range, like 19%. With these cards you’ll know exactly what your interest rate will be if you’re approved.

If you’re not quite sure what APR means, you can read all about what APRs are and how they work with credit cards. It’s also important to know that your APR actually doesn’t matter in many cases, when it comes to purchases you make.

Cards with very low interest rates, below 10% or so, are rare. In some cases, low APRs are used to entice people to apply for cards that have bad terms otherwise, like high fees and no rewards. Since you don’t actually have to accrue interest on your credit card purchases, as we explain below, these card offers are not very valuable and we suggest avoiding them.

This post is all about credit cards with low interest rates, rather than 0% interest rates (although some of the cards also have 0% rates).

If you’re specifically looking for 0% APR cards for making purchases, check out the Best Credit Cards with a 0% Intro APR: 2018.

Or, if you want a 0% APR on balance transfers, see the Best Balance Transfer Credit Cards: 2018.

Take note that credit card APRs tend to change over time. We endeavor to maintain accurate reporting for every card, but occasionally you may find an APR that’s out of date. Be sure to check the card terms before applying for any credit card.

Low-Interest Credit Cards

With all that being said, there are some credit cards that can have lower-than-average interest rates, which are still higher than 0%. These cards may be useful for carrying a balance if you can’t qualify for a 0% card, but they’re not ideal for this purpose.

We’ve focused on the APRs for the cards selected on this page. But keep in mind that they may have other valuable features as well, like rewards and cost-saving benefits.

Low Rate

Key Terms & Features

  • Intro Balance Transfer APR: 0% for 12 months, for transfers made during the first 45 days
  • Regular Purchase APR: 13.74% Variable
  • Regular Balance Transfer APR: 13.74% Variable
  • Cash Advance APR: 13.74% Variable

The Barclaycard Ring™ Mastercard® (Review) is known for its low interest rates (they used to be even lower, around 9%). The APR is set at a particular value, rather than a range. The current rate is below the industry average, but you still wouldn’t want to maintain a balance for very long at that rate.

This card’s features, even the intro offer, are subject to change more than usual, as the cardholder community plays a role in voting for product changes — if a lot of cardholders want a lower APR, you may see one in the future.

 

Key Terms & Features

  • Regular Purchase APR: 11.74%–23.74% Variable
  • Regular Balance Transfer APR: 11.74%–23.74% Variable
  • Cash Advance APR: 25.74% Variable

The U.S. Bank Visa® Platinum Card also has a pretty low potential interest rate. But in this case there’s a range, which means you could wind up with the higher end depending on your creditworthiness.

 

Key Terms & Features

  • Regular Purchase APR: 8.90%–25.90% Variable
  • Regular Balance Transfer APR: 8.90%–25.90% Variable
  • Cash Advance APR: 8.90%–25.90% Variable

The USAA Rate Advantage Platinum Visa® (Review) can provide an exceptionally low rate, as the name implies. But it offers an APR range, so you could also get a rate over 20% depending on your creditworthiness.

USAA credit cards are only available to eligible members of the military and their families. Its cards tend to have lower potential interest rates than average, but they all come with APR ranges. The USAA Rewards™ Visa Signature® (Review) and USAA Rewards™ American Express® Card (Review), for example, each have a regular purchase APR of 11.90%–27.90% Variable.

Rewards

Key Terms & Features

  • Intro Purchase and Balance Transfer APR: 0% for 14 months
  • Regular Purchase APR: 13.99%–24.99% Variable
  • Regular Balance Transfer APR: 13.99%–24.99% Variable
  • Cash Advance APR: 26.99% Variable

The Discover it® Cash Back Credit Card (Review) has an APR range that dips a bit lower than your average rewards credit card. This card offers 5% cash back in categories that rotate every 3 months, and include different places like grocery stores, gas stations, wholesale clubs, and Amazon.com. There’s no limit to the total cash back rewards you can earn, but you’re limited to a quarterly maximum of $2,500 in spending at the 5% rate.

To get the introductory APR, balance transfers must be completed within 3 months of account opening. Discover cards have no penalty APRs.

There are a couple other Discover cards that share this same APR range, in fact:

And you’ll get that same rate with a Capital One card, the Capital One® VentureOne® Rewards Credit Card (Review).

American Express also has several reward card offers with APRs that could be on the low end, depending on your creditworthiness. They’re just a bit higher than the Discover and Capital One cards mentioned above. The following cards provide a regular APR of 14.99%–25.99% Variable:

Student

Key Terms & Features

  • Intro Purchase and Balance Transfer APR: 0% for 6 months
  • Regular Purchase APR: 12.90%–22.90% Variable
  • Regular Balance Transfer APR: 12.90%–22.90% Variable
  • Cash Advance APR: 25.74% Variable

Most student credit cards have relatively high interest rates, since students typically have limited or no credit. But the Wells Fargo Cash Back College Card is an exception, with an APR range that includes a very low rate.

Bank of America also offers a couple of student cards with comparable APRs:

Key Terms & Features

  • Intro Purchase and Balance Transfer APR: 0% for 15 months
  • Regular Purchase APR: 14.99%–24.99% Variable
  • Regular Balance Transfer APR: 14.99%–24.99% Variable
  • Cash Advance APR: 17.99%–26.99% Variable

 

Key Terms & Features

  • Intro Purchase and Balance Transfer APR: 0% for 12 months
  • Regular Purchase APR: 15.24%–25.24% Variable
  • Regular Balance Transfer APR: 15.24%–25.24% Variable
  • Cash Advance APR: 18.24%–27.24% Variable

Business

Key Terms & Features

  • Intro Purchase APR: 0% for 7 months
  • Regular Purchase APR: 10.99%–21.99% Variable
  • Regular Balance Transfer APR: 10.99%–21.99% Variable
  • Cash Advance APR: 25.99% Variable

Business credit cards tend to have APRs that are pretty comparable to regular consumer cards. But the Platinum Plus for Business Credit Card by Bank of America has an APR that could be quite low, well below the average. But it’s possible to get the higher end of that range as well. This card offers no spending rewards, but it does feature a $200 statement credit for spending $500 in the first 60 days.

Bank of America issues two other business cards, which each have an intro purchase APR of 0% for 9 months. And they have slightly higher regular APRs than the Platinum card, of 13.24%–23.24% Variable:

There are a few other issuers that provide business cards with relatively low APRs, as well:

Key Terms & Features

  • Intro Purchase APR: 0% for 15 months
  • Regular Purchase APR: 13.24%, 17.24%, or 21.24% Variable
  • Regular Balance Transfer APR: 13.24%, 17.24%, or 21.24% Variable
  • Cash Advance APR: N/A

 

Key Terms & Features

  • Intro Purchase APR: 0% for 15 months
  • Regular Purchase APR: 14.24%, 19.24%, or 21.24% Variable
  • Regular Balance Transfer APR: N/A
  • Cash Advance APR: N/A

 

We're currently unable to link directly to an application for the Capital One® Spark® Cash Select for Business, but you can learn more here, on our advertising partner's website.

Key Terms & Features

  • Intro Purchase APR: 0% for 9 months
  • Regular Purchase APR: 14.74%, 18.74%, or 22.74% Variable
  • Regular Balance Transfer APR: 14.74%, 18.74%, or 22.74% Variable
  • Cash Advance APR: 24.74% Variable

 

Key Terms & Features

  • Intro Purchase APR: 0% for 12 months
  • Regular Purchase APR: 14.74%–22.74% Variable
  • Regular Balance Transfer APR: 14.74%–22.74% Variable
  • Cash Advance APR: 26.74% Variable

Credit Union Credit Cards with Low Interest Rates

Credit unions are known for issuing cards with lower-than-average interest rates and fees, although they’re usually lacking in rewards and benefits. If you can live with this trade-off, you may prefer to use a credit union card rather than a typical rewards or travel card from one of the major card issuers.

There’s actually a federal law limiting most credit union interest rates to 18% APR, and this includes credit cards. So you can trust that your rates will be no higher than that for credit union cards.

Credit unions typically have some membership requirements, like living in a certain area or being a member in certain organizations. To join the Alliant Credit Union, for example, you need to live or work in specific parts of Chicago, donate to Foster Care to Success, or meet other criteria. You can use this credit union locator tool to find one you can join, although not all credit unions offer credit cards.

Here are a few credit union credit cards with exceptionally low rates.

Key Terms & Features

  • Regular Purchase APR: As low as 8% Variable
  • Regular Balance Transfer APR: As low as 8% Variable

This card’s full terms aren’t disclosed to non-members, but your interest rates could be very low with this card, depending on your creditworthiness. You aren’t guaranteed this low rate. There are no balance transfer fees with this card.

Lake Michigan Credit Union offers another low-rate card with rewards, the Max Rewards Visa. It has an APR that could be as low as 11.75% Variable, and offers 3% cash back on gas, with 2% back at grocery stores and restaurants.

Key Terms & Features

  • Regular Purchase APR: 10.25%–18.00% Variable
  • Regular Balance Transfer APR: 10.25%–18.00% Variable
  • Cash Advance APR: 10.25%–18.00% Variable

The Digital Federal Credit Union offers a few different cards, and the Visa Platinum has the lowest rate. It also issues the DCU Visa® Platinum Rewards, which has an APR as low as 13% Variable and offers one reward point per dollar for purchases. DCU cards have no balance transfer fees and no foreign transaction fees.

 

Key Terms & Features

  • Intro Balance Transfer APR: 0% for 12 months, for transfers requested within 30 days
  • Regular Purchase APR: 7.74%–18.00% Variable
  • Regular Balance Transfer APR: 7.74%–18.00% Variable
  • Cash Advance APR: 2% above your Variable APR

The Navy Federal Credit Union offers several other credit cards too, although none of them have rates as low as the NFCU Platinum. All NFCU cards have no balance transfer fees or foreign transaction fees, and some of them have introductory APRs as well. They include:

Key Terms & Features

  • Regular Purchase APR: 10.74%–18.00% Variable
  • Regular Balance Transfer APR: 10.74%–18.00% Variable
  • Cash Advance APR: 2% above your Variable APR

 

Key Terms & Features

  • Intro Balance Transfer APR: 0% for 6 months
  • Regular Purchase APR: 11.40%–18.00% Variable
  • Regular Balance Transfer APR: 11.40%–18.00% Variable
  • Cash Advance APR: 2% above your Variable APR

 

Key Terms & Features

  • Regular Purchase APR: 11.40%–18.00% Variable
  • Regular Balance Transfer APR: 11.40%–18.00% Variable
  • Cash Advance APR: 2% above your Variable APR

Special Low-Interest Rates for Active Duty Military

Active-duty members of the military are eligible for special low interest rates due to the Servicemembers Civil Relief Act (SCRA).

The SCRA covers more than just interest rates, but when it comes to credit cards the main benefits are:

  • A cap of 6% APR for any credit card debts owed before entering active-duty service (debts incurred after beginning active duty are subject to the regular APR)
  • Credit card issuers are barred from reducing credit limits or dropping customers as a result of entering active-duty service

Take note that these benefits only apply to accounts and balances opened before entering active duty. If you’re already on active duty and you get a new credit card or build up new debt on existing accounts, the regular APR will apply.

You can check your SCRA eligibility here.

SCRA benefits can basically turn any credit card into a low-interest card. And some card issuers go even further for cardholders who qualify for the SCRA: Barclays and Citi both provide 0% APRs, while Chase, Capital One, and USAA all provide a 4% APR. Many card issuers will even waive the fees associated with their cards, including annual fees.

That means active-duty servicemembers could use the expensive The Platinum Card® from American Express (Review) ($550 annual fee) or Chase Sapphire Reserve (Review) ($450 annual fee) completely for free, taking advantage of all the rewards and perks those premium cards offer.

Learn more about the best military credit cards for active-duty servicemembers eligible for SCRA benefits.

If you’re on active duty or will be, take some time to review all the benefits that card issuers provide under the SCRA. Remember that these benefits don’t apply to accounts opened after beginning active duty, so you’ll need to plan ahead a bit.

Sub-Prime Credit Cards with Low Interest Rates

There are a few sub-prime credit card offers with low interest rates, although we generally recommend staying away from these.

Sub-prime cards are marketed to people with bad credit scores or limited credit history. Their most attractive feature is the fact that they’re easy to get. If you don’t have excellent credit you may find cards like these appealing, but they’re also known for having poor customer service and ancient payment processing systems.

Most sub-prime cards are expensive, with high annual fees, extra fees for opening accounts or increasing credit limits, and, in most cases, very high interest rates. But there are also a few with lower-than-average APRs.

One example is the Green Dot primor® Secured Visa® Platinum Card (Review). This is a secured credit card, which means it requires a security deposit to fund the credit limit.

The Green Dot card has a purchase APR of 19.99% Fixed, which is quite low. There’s also an annual fee of $39.

We don’t recommend the Green Dot card because using a secured card to carry a balance doesn’t make much sense. You’ll need to provide a security deposit for the card — so why not just put that money towards paying off your balance?

If you have a $500 balance to deal with, for example, you’d need to put down a deposit of at least $500 to carry it from month to month, accruing interest as you go. So why not just use the $500 to pay off the debt? You won’t accumulate that extra interest, and it will get the debt off your credit reports more quickly.

A more typical example of a sub-prime card is the First PREMIER Bank Credit Card (Review). It has a one-time $95 “program fee,” an annual fee as high as $125, monthly fees that can be more than $10 per month, and a whopping 36.00% Fixed APR!

Who would want that?

Do Interest Rates Really Matter?

If you carry a balance on your credit card from month to month you’ll be charged interest at your given APR. This is an easy way to get into credit card debt, so we recommend always paying your statement balance in full every month.

By paying your full statement balance each month you’ll be able to completely avoid interest charges on purchases. Credit cards usually have a “grace period” during which you won’t be charged interest on purchases, as long as you continue to pay the statement balance on every bill. Grace periods are not legally required, but almost every credit card has one; all of the major credit card issuers provide grace periods.

So, pay your statement balance in full each month to prevent interest from accruing on your purchases. Or, if you have a card with a 0% introductory purchase APR, you can revolve that balance from month to month without interest charges.

Balance Transfers and Cash Advances

Balance transfers and cash advances are a bit different, however. This is because credit cards actually have different APRs for purchases, balance transfers, and cash advances (but the APR for purchases and balance transfers is usually the same).

Balance transfers and cash advances will start accruing interest at their given APRs immediately — as soon as you complete them.

Balance transfers can potentially be a great way to pay off a balance. If you have a $3,000 balance on a card with a 24% APR, for example, you may be able to transfer it to a card with a lower interest rate. The best balance transfer credit cards have 0% APR introductory periods, letting you pay off the balance over time without accruing any interest. There’s usually a fee for the transfer, like 3%, and minimum monthly payments are still required.

Cash advances, on the other hand, should only be used in true emergencies when you absolutely have to get some cash quickly. Cash advance APRs are typically very high, even when it comes to credit cards: often around 25%. And interest will start accruing on the same day you take out the advance. We recommend avoiding them, but if you have to take out a cash advance try to pay it back as quickly as possible.

To sum up, you usually don’t have to worry about accruing interest on your purchases as long as you pay your statement balance in full each month. But if you do plan to maintain a balance on your credit card, you should aim to get the lowest interest rate possible — preferably 0%.

Charge cards are a special type of credit card, which have no interest rates. Instead you’re required to pay the full statement balance each month or you’ll be charged a late fee. In some cases charge cards also provide the option to carry a balance from month to month at a given APR.

Wrapping Up

Most credit cards come with a range of interest rates, and the APR you get will depend on your creditworthiness. In these cases there’s no guarantee that you’ll get a low rate.

Other cards have a specific APR that you’ll get if approved, although these are less common.

Interest rates don’t have to matter at all for purchases, as explained above. As long as you pay your statement balance in full each month, interest won’t accrue on your purchases and your APR won’t have any effect.

If you decide that you need a card with a guaranteed low APR, for whatever reason, we recommend looking to the Barclaycard Ring™ Mastercard® (Review). There are also many cards issued by credit unions that could fit the bill. But whatever you do, be sure to avoid sub-prime credit cards.

You didn’t find the right card for you? That’s OK! Check out our picks for the Best Credit Cards of 2018 in a variety of different categories.
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