Instead of a card with a 0% introductory rate, you might be better off with low interest rate credit cards if you frequently carry a small balance and like to use credit cards to track your regular spending. Some even provide benefits for shopping or traveling.
Low-rate credit card offers are available, but terms vary depending on credit score and personal circumstances. This article provides information on what low-interest rate credit cards are and the best cards in 2023.
What Is A Low-Interest Rate Credit Card?
Low interest rate credit cards reduce the cost of debt, which helps you save money: You can repay what you borrowed more quickly when you’re paying less interest. The most immediate interest savings will come from a credit card with a 0% introductory Annual Percentage Rate (APR) period. Try to find one with an introductory period that is more than a year-long and interest-free. A card with a low ongoing interest rate will benefit you in the long run if you frequently carry a balance.
Furthermore, you can completely avoid interest by paying off your credit card balance each month in full, but we are aware that’s not always possible. A low-interest credit card can help you save money and pay off your balance more quickly if you occasionally carry a balance. Check out our top picks for low-interest credit cards after that.
Best 10 Low-Interest Rate Credit Cards
#1. BankAmericard credit card
The BankAmericard credit card doesn’t try to be flashy. You receive one of the longest introductory 0% APR periods possible, giving you plenty of time to pay off debt or finance a significant purchase.
#2. Wells Fargo Reflect Card
The Wells Fargo Reflect Card has one of the longest 0% intro APR periods on the market, potentially approaching almost two years, provided you meet the on-time minimum payment requirements. It’s unlikely that an interest-free period that lasts longer and applies to both purchases and balance transfers will exist.
#3. U.S. Bank Visa Platinum Card
Our preference is a longer initial 0% APR period is the U.S. Bank Visa Platinum Card. Thanks to its protracted 0% introductory APR period for both purchases and balance transfers, it had become a favorite for people looking for low interest on credit cards.
#4. Chase Slate Edge
The Chase Slate Edge, which has no annual fee, isn’t particularly flashy but it does offer a great 0% introductory APR period on purchases and balance transfers, as well as some additional potential rewards for timely payments.
#5. Citi Custom Cash Card
With no annual fee, the Citi Custom Cash Card offers a lot of benefits, including 5% automatic cashback in your top eligible spending category on up to $500 in purchases each billing cycle (1% back on all other purchases). The list of 5% eligible categories is extensive and features well-known establishments like restaurants, supermarkets, and more. Additionally, there is no calendar for bonus activations or schedule like with its rivals.
#6. Capital One Quicksilver Cash Rewards Credit Card
In an increasingly crowded market, the original 1.5% flat-rate cash-back card is still competitive. A good rewards rate, flexible redemption options, a sign-up bonus, and an introductory 0% APR period are all attractive features of the Capital One Quicksilver Cash Rewards Credit Card.
#7. Bank of America Unlimited Cash Rewards credit card
One of the many 1.5% flat-rate cash-back credit cards available is the Bank of America Unlimited Cash Rewards card. With a respectable sign-up bonus, a long introductory APR period, and the chance to increase your earnings through the Bank of America Preferred Rewards program, it comes with some advantages.
#8. Blue Cash Everyday Card from American Express
The Blue Cash Everyday Card from American Express pays elevated rewards at U.S. supermarkets, at U.S. gas stations, and on U.S. online retail purchases. The rewards might not be as rich as on the Blue Cash Preferred Card from American Express, but this card doesn’t charge an annual fee either. New cardholders get a decent welcome offer and an introductory 0% APR period.
#9. Chase Freedom Fle
In addition to travel booked through Chase, dining out, and shopping at pharmacies, the Chase Freedom Fle offers bonus cash back in quarterly categories that you activate. Although category activation can be a hassle, you can save hundreds of dollars annually if your spending matches the categories, which it will for many people. For new cardholders, there is a fantastic bonus offer as well as a 0% introductory APR period.
#10. Discover it Cash Back
With Discover it Cash Back, you can activate quarterly categories to receive bonus cash back. Previously, those categories included typical spending places like supermarkets, dining establishments, gas stations, and Amazon.com. Although category activation can be a hassle, you can reap significant benefits if your spending fits into those categories (which is likely for most households). In your first year, you also receive the “cash-back match” bonus, which is the issuer’s trademark.
Why Choose Low-Interest Rate Credit Cards?
Since interest rates started rising steadily in December 2021, the annual percentage rates (APRs) charged on credit cards have been edging up. Credit card APRs charging around 23.9% (variable) are now fairly common, as opposed to the more common 19.9% (variable) before prices started to rise. With a card that offers 0% on purchases and/or balance transfers, you can avoid paying this interest. These interest-free intervals, though, are merely promotional and short-lived. After the specified number of months, they return to high APRs.
Therefore, this indicates that the cost of your debt will suddenly increase unless you pay off any outstanding balances or transfer them to another card from a different issuer (a process that is likely to incur a transfer fee). Credit cards with low-interest rates are a good choice. While they do charge interest, the rates are reasonable and don’t increase after a promotion.
This eliminates the need to balance multiple cards to manage expenses, and if you do accumulate a small balance, the interest you’ll be charged shouldn’t feel catastrophic.
What Are The Advantages Of A Low-Interest Credit Card?
A low-rate credit card will ensure that you don’t pay too much interest if you carry a balance on your card and/or don’t pay off purchases within the predetermined time frame (typically 56 days). In actuality, low-rate credit cards typically have APRs that are less than half of what regular credit cards charge.
Additionally, another major benefit is that you won’t have to decide between paying exorbitant interest on your balance overnight or chasing down erratic promotional rates.
What Are The Disadvantages Of Low-Interest Credit Cards?
Some low-rate credit cards have additional fees for transferring balances or using them abroad, which can raise the price even more. If you use your credit card to make a cash withdrawal, there are frequently additional fees to pay, and interest will be charged from the date of the withdrawal even if you pay off your balance in full that month.
Furthermore, if you make a monthly payment past due or completely forget to do so, you will be assessed a fee, and your credit score will be impacted. It’s worth setting up a monthly direct debit to ensure that you remember to pay on time.
How To Calculate Your Monthly APR?
There are three steps you can take to determine your monthly APR rate:
In your credit card statement, you can find your balance and current APR. To calculate your monthly periodic rate, divide your current APR by 12 (for the twelve months of the year)., then multiply the amount of your current balance by that number.
How To Calculate Your Daily APR?
Your interest may be calculated by your credit card company using a daily periodic rate. Your daily APR can be calculated in three steps:
In your credit card statement, you can find your current APR and balance. For each of the 365 days in a year, divide your APR rate by 365 to get your daily periodic rate. Multiply your daily periodic rate by your current balance.
Why Is It Important To Calculate Your APR?
Calculating your daily and monthly APR can help you understand how much money is going to interest you and motivate you to pay off debt or make financial decisions. Breaking down interest rates on a daily and monthly basis can help you make financial decisions.
What Is A Good Credit Card Interest Rate?
A credit card’s good APR (Annual Percentage Rate) is less than 14%. The average APR for credit cards is higher than the 14% APR. The rates charged by credit cards for people with excellent credit, which typically have the lowest regular APRs, are comparable to this as well. However, 0% is a fantastic APR for a credit card.
How To Get A Low Credit Card Interest?
You may frequently be given a lower interest rate if you maintain good credit and a spotless payment history. Don’t give up, just continue to pay your bills on time, get rid of any remaining debt, and make a plan to give it another go in three to six months. The next time, you can make a stronger argument by repairing your credit.
Which Bank Has A Low-Interest Rate?
Top private sector lenders typically offer personal loan interest rates starting at 10.49% p.a. However, public sector banks like Indian Bank, Bank of India, and Punjab National Bank offer the lowest personal loan interest rates.
Is It Better To Have A Low-Interest Rate On A Credit Card?
Yes, this is because a low-interest credit card can help you save money and pay off your balance more quickly if you occasionally carry a balance.
Does Mastercard Have Low-Interest Rates?
For 15 months after the first transfer date and 15 months after the account opening date, Mastercard offers 0% intro APR on balance transfers and purchases. After that, depending on your creditworthiness, the variable APR will range from 18.24% to 28.24%.
Do You Pay Interest On A Credit Card If You Pay It Off Every Month?
No, If you pay off the entire balance on your credit card by the due date every month, you’ll avoid paying interest. Improve your credit score: You can build a solid payment history by using your credit card and paying off the balance.
Is 24% Credit Card Interest Bad?
Yes, A credit card with a 24% APR is expensive. A higher credit score will allow you to qualify for lower rates, even though many credit cards offer a range of interest rates. A quick way to lower your credit card rates is to raise your credit score.
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