To qualify for the lowest-interest credit cards, it helps to have good credit, but there are also low-interest cards available for individuals with fair credit. Some credit card companies even charge no interest for the span of a promotional introductory period. If you are carrying a balance now or plan to make a big purchase, a card with a 0% APR introductory period may the best fit for your needs.
Below, you can find a list of the best low interest offers. Assess each card's introductory rates, ongoing rates, annual fees, and rewards to find the right card for you.
FAQs on low interest credit cards
What qualifies as low interest?
In general, an APR that falls under the national average is considered "low interest." Currently, the average interest rate is approximately 17%
, so anything in the 13-15% range qualifies as low interest.
Why does my credit card list several different APRs?
Many credit cards charge different interest rates depending on how you access your credit. For example, a credit card may charge an APR for purchases, another one for balance transfers, and yet another for cash advances. You should look for a credit card that charges the lowest interest for your most common spending habits.
Is it possible to avoid paying any interest?
Sure! Just pay off your balance in full by the end of each month. You only pay interest on your outstanding balance, so if you pay off your card as soon as you spend credit, you can pay 0% interest indefinitely. Plus, paying off your balance by the end of each month will also help your credit score! Another option is to use a card with a 0% APR. Note that sometimes you will have to pay a fee to qualfy for the 0% APR.
Does my credit score affect my ability to qualify for low interest credit cards?
Yes. Your credit score is a representation of your creditworthiness. Based on your past borrowing behavior (especially your payment history and credit utilization), your credit score gives credit card companies a sense of how reliably they can expect you to make your payments. If you have good credit, you'll likely qualify for a better interest rate.
Most credit card companies charge different APRs for the same credit card. The rate that you receive depends on your credit score.
Can you negotiate the APR on credit cards?
Yes, you can request a better rate. Call customer care and let the customer service representative know. At this point, their system will review your account. With any luck, they'll offer you an APR that is lower than the one you currently have. Your chances are especially good if you have good credit and it's been more than a year since you last got an APR reduction.
What is a 0% purchase APR offer?
A 0% purchase APR offer charges cardholders no interest for a limited period. This means you can sign up for a card with a 0% purchase APR offer, transfer your existing credit card debt or cover a large purchase, and then avoid paying any interest as long as you pay it off before the promotional period ends.
Promotional APR offers vary in length and scope, but you can often secure 0% APR on purchases for up to 15 months, and sometimes even longer.