Credit cards are a great tool if used correctly. You can borrow the right amount of money each month within your limit without personal credit and even avoid interest entirely if you pay your credit card balance in full before the new billing period.
Sometimes, however, you may be unable to pay back your borrowed funds in a couple of weeks. In that case, you can save hundreds of dollars if you get a low interest rates credit card in advance.
Best Offers of Low Interest Credit Cards
If you have a good or excellent credit score, hundreds of credit cards are available to you from different banks. But how do you choose the best one? My team and I have analyzed several dozen offers and selected just 7 of the best credit cards with low interest rates.
All you have to do is read the descriptions below carefully. Then, pay attention to the bank’s requirements, interest rate, cash back, and additional fees to choose the most favorable option.
Discover it® Cash Back
Discover has some of the best credit cards for users with above 670 FICO points. Its terms of use are as follows:
- You’ll receive 5% cash back on purchases in categories you choose and activate yourself at the beginning of each quarter. In addition, you’ll always receive 1% cash back on all other purchases.
- The company will double all of your cashback earned in the first year when you decide to withdraw as a welcome bonus.
- Discover it Cash Back has a $0 annual fee.
The main advantage of this option is 0% APR for 15 months and a low interest rates all other times (15.74% – 26.74% variable). The only significant disadvantage is the 5% cashback limit; you can get a maximum of $75 per quarter, after which you will only get 1% of your money back. Discover it Cash Back
Discover it Cash Back is an excellent option for those who want to save on account maintenance, get cashback and not pay as high an APR as other credit cards.
Wells Fargo Reflect® Card
This credit card has the lowest interest rates and allows you to pay no APR for the first 18 months of account opening. Besides, its annual fee is $0, and the APR increases to 16.74% – 28.74% from the 19th month.
Unfortunately, the Wells Fargo Reflect® Card doesn’t offer welcome bonuses or the ability to earn cash back, which is one of its significant drawbacks. It also has a 3% foreign transaction fee, which can be a problem for those who travel abroad frequently.
You must have a good or excellent FICO score to get this credit card. If the option above doesn’t work for you, or if you don’t want to receive a cashback, you can take advantage of this offer from Wells Fargo.
Chase Freedom Unlimited®
Chase Freedom Unlimited allows you to earn cash back, get a sign-up bonus of 1.5% additional cash back and avoid annual fees! Plus, this credit card has 0% APR for the first 15 months of use and 18.74% 27.49% APR (variable) after that period.
Chase Freedom Unlimited gives you 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on restaurant or pharmacy purchases, and 1.5% on all other categories. Plus, you’ll get $300 cash back on an additional intro offer of 1.5% cash back on everything you buy (on up to $20,000 spent in the first year).
This credit card is suitable for any purpose except travel, as it has a 3% foreign transaction fee. You can take advantage of this offer if you have a good or excellent FICO score.
Capital One Quicksilver Cash Rewards Credit Card
Another credit card allows you up to 5% unlimited cashback on travel purchases through Capital One Travel and 1.5% on all other categories. In addition, it has a welcome bonus of $200 and an annual fee of $0, which are some of its benefits.
You should also consider this option if you want to avoid interest rates for the first 15 months (after that period, it goes up to 17.99% – 27.99%, depending on your credit score). It’s also great for travel, as it has a $0 foreign transaction fee in addition to the cashback.
This credit card from Capital One is an excellent option for those with a good FICO score. You can also use it for balance transfers, as it only charges a 3% fee for this service and has a long intro 0% APR period.
Chase Freedom Flex℠
Chase Freedom Flex℠ is a credit card with great cashback, a low interest rate, and a $0 annual fee. It has a 0% APR for the first 15 months of use, which rises to 18.74% – 27.49% after that period.
With Chase Freedom Flex,℠ you can get up to 5% cash back on up to $1,500 in categories you activate yourself each quarter. In addition, you’ll get 3% cash back on every dollar you spend at restaurants or pharmacies and 1% on all other expenses.
Another advantage of this option is the $200 cash bonus for a $500 spend in the first three months, which is the best offer on the market. Its only drawback is the 3% foreign transaction fee, so if you’re not going to use it abroad, this might be the best option.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
A credit card with “no fees” in its name does not require annual account maintenance fees, nor does it charge late fees for missed payments or foreign transaction fees for payments abroad. In addition, users leave a lot of positive feedback about this option, as it is one of the few cards available even to those with no credit history.
Lest you doubt this is an unsecured credit card, we will draw your attention to the absence of a mandatory deposit. In addition, as the name suggests, the Petal® 2 allows you to get cashback on various categories:
- You can earn up to 1.5 percent on eligible purchases after making 12 on-time monthly payments.
- Immediately after opening an account, you will have 1% cash back on specific categories.
The only significant disadvantage of this option is that there is no 0% APR period. The Petal® 2 has an interest rate of 16.74% – 30.74% (variable) from the first days, depending on your credit score.
If you have good credit, you’ll probably be better off with one of the options described above. However, this is the best offer for you if you have less than a 670 FICO score.
Blue Cash Everyday® Card from American Express
Often credit cards give cashback on the categories in which users spend the least, but that’s certainly not the case with the Blue Cash Everyday® Card from American Express. With it, you can get 3% cash back at supermarkets, gas stations, and online shopping and 1% on all other spendings.
If you don’t want to pay APR for the first 15 months, that’s another reason to get this credit card. After that period, the interest rate will go up to 18.24% – 29.24% (variable), but you can still avoid paying annual fees.
Even though this credit card is for everyday purchases, it has a foreign transaction fee of 2.7%, which is lower than many competitors. You can also use it for balance transfers, so consider it if you have more than 670 FICO points.
Read More: Best Cash Back Credit Cards 2024
What Are Low Interest Credit Cards?
The main disadvantage of credit cards compared to personal loans is the high APR or annual percentage rate. In essence, it is a fee for using credit funds, which you only have to pay when you carry balance.
To attract new users, banks often issue credit cards with 0% APR, but it is essential to understand that this interest rate is always valid only for a limited period. Generally, after 12-15 months, the APR rises to 15% – 28%, which you should consider when choosing a credit card.
Low interest credit cards usually have a minimum APR of about 15% since the lowest interest rates in the U.S. are just over 10%.
Pros and Cons Of Low Interest Credit Cards
The ability to pay less for the use of credit is the main advantage of such credit cards, but it is not the only one:
- You will save money on your monthly payments, even if you carry a monthly credit card balance.
- You can also open an account with 0% APR for the first 12-15 months if you have good credit.
- Often these credit cards have low or zero annual fees.
- Lower monthly payments make it easier to pay off your debts and build a positive credit history.
- Some of these cards even allow you to earn cashback and various rewards.
However, at the same time, such proposals have their disadvantages:
- They are usually only available to people who have good or excellent credit. Of course, people with less than 670 FICO points can also find such credit cards, but their terms will be less attractive.
- You are unlikely to be able to get cash advances with such a cheap credit card.
- Banks still have to make money on something, so they often add extra fees to a low APR.
Any financial expert will tell you that you should choose credit cards with the lowest APR and fees.
Why Should I Get a Low Interest Credit Card?
Imagine you make a hefty $5,000 purchase, and you can’t pay it off in one month. So you would have to pay an APR on it, which on regular credit cards is as high as 20% -25 % on average.
What happens if you get a low interest credit card? First, if you have good credit, you can take advantage of 12 months of intro APR. That’s enough time to pay off $5,000, so you’re essentially buying at 0% APR.
Second, if you use this credit card permanently after your trial period ends, you will still save dozens of dollars on your monthly payments. This will make it easier for you to pay off your debts and build a positive credit history faster.
It turns out that credit cards with low interest are a good idea, regardless of your credit rating. So always choose offers with the lowest APR and fees to save as much money as possible.
Read More: Best Credit Cards for Instant Approval
How to Get a Credit Card With a Low Interest Rate
Getting such a credit card is straightforward if you have a good credit score. You need to do the following three steps:
- Choose the offer that is best for you.
You can consider the options described in our article. The main thing is to pay attention to the interest rates, any additional payments, and the availability of cashback. - Apply on the bank’s website.
You will need to give your personal information and provide the documents the bank requires. Usually, this is proof of your address, official employment, and income level. - Get your credit card and keep track of your spending.
Another disadvantage of such offers that is rarely discussed is the overspending it leads to. A 0% APR or low rates make you feel like you can afford to spend even more money, which can lead to debt and financial hardship.
0% Credit Card VS Low Interest Credit Card
Very often, when we see the phrase 0% APR, we automatically think that this is the best offer we should take advantage of. The problem is that among all the high-profile offers with a 12-month 0% interest rates period, it’s hard to spot a great credit card with a low interest rate, as some users claim. But is it sure to be the most profitable one?
Let’s do the math.
Let’s say you have two credit cards with $5,000 in debt on each card. The first has a $60 annual fee and 0% APR for the first 12 months (after that, APR will be 19% – 28%). The second has a $0 annual fee but a 15% APR.
How much will you pay for the year if you don’t pay this debt?
The first credit card will allow you to pay 0% APR, but you have to pay a $60 annual fee. The second one will require you to pay $750 APR and a $0 maintenance fee. As you can see, the card with a 0% intro APR is more advantageous.
What conclusion can we draw from this situation?
The best option is a credit card with a 0% intro APR, $0 annual fee, and average regular APR. So if you can qualify for that offer, be sure to take it.
Sources Used in Research for the Article:
- Freedom Unlimited Cashback Made Simple, Chase, https://www.chase.com/personal/credit-cards/freedom/unlimited
- Wells Fargo Reflect® Card, Wells Fargo, https://creditcards.wellsfargo.com/reflect-visa-credit-card?DTATST=ND0N35G&sub_channel=SEO&vendor_code=G
- Unlimited Cashback Match, Discover, https://www.discover.com/credit-cards/cash-back/it-card.html