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If you're looking for a credit card, getting one with a low interest rate should be one of your top priorities. It's always ideal to pay off your balance in full each month, but sometimes it's not possible. The lowest interest credit cards can tide you over when you come up short. They can also serve as a back-up emergency fund, and even help you pay off debt quickly. Here are our top picks for the best low interest credit cards.
Great for: Long intro 0% APR on balance transfers
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 21 months
Regular APR
18.24% - 28.99% (Variable)
Rewards
N/A
Annual Fee
$0
This card sets itself apart with an incredible 21-month 0% intro APR offer on qualifying balance transfers and no annual fee, making it a top pick for anyone looking for ample time to pay off credit card debt. Plus, you can choose from any available payment date. That way, you can set up automatic payments that are aligned with your paycheck. Read Full Review
Great for: 0% intro APR on purchases and balance transfers and unlimited match for cash back
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 15 months
Balance Transfers: 0%, 15 months
Regular APR
17.24% - 28.24% Variable APR
Rewards Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
1% - 5% Cashback
Annual Fee
$0
Welcome Offer N/A
Discover will match all the cash back you’ve earned at the end of your first year.
We think this card has among the highest cash back potential for cards with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches all the cash back new cardholders have earned at the end of the first year. That cash back can seriously add up when you earn 5% cash back on rotating bonus categories (when you activate them, up to the quarterly maximum) and 1% on other purchases. Read Full Review
Bank of America® Customized Cash Rewards credit card
Great for: Long intro APR and bonus cash back
On Bank of America's Secure Website.
On Bank of America's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24% - 28.24% Variable APR on purchases and balance transfers will apply. Balance transfers include a fee of 3% for 60 days from account opening, then 4%.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR
18.24% - 28.24% (Variable)
Rewards 3% cash back in your choice category, 2% at grocery stores & wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% on all other purchases.
1% - 3% cash back
Annual Fee
$0
Welcome Offer $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
$200 cash rewards
This card's wide range of extra cash back options speaks for itself, with a choice of six bonus categories you can change monthly for 3% earnings in the category of your choice. And you can earn 2% back automatically at grocery stores and wholesale clubs. No annual fee and a nice welcome bonus also make this one a winner. Plus, if you're a Bank of America Preferred Rewards member, this card will be even more valuable for you. Read Full Review
Capital One Quicksilver Cash Rewards Credit Card
Great for: Unlimited cash back and card perks
On Capital One's Secure Website.
On Capital One's Secure Website.
Good/Excellent (670-850)
Intro APR
Purchases: 0% intro on purchases for 15 months
Balance Transfers: 0% intro on balance transfers for 15 months (Balance Transfer Fee Applies)
Regular APR
19.99% - 29.99% (Variable)
Rewards Earn unlimited 1.5% cash back on every purchase, every day. Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply.
1.5%-5% cash back
Annual Fee
$0
Welcome Offer $200 Cash Back after you spend $500 on purchases within 3 months from account opening
$200 Cash Back
What really stands out is the incredibly easy-to-earn sign-up bonus. You can earn a $200 sign-up bonus after spending only $500 in your first 3 months (that's like earning 40% cash back on that spend!). If a straightforward cash back program & sign-up bonus with a low spending hurdle is most important to you, then this card is a very solid pick. Read Full Review
Great for: 0% intro APR for balance transfers and purchases
Good/Excellent (670-850)
Intro APR 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 21 months from account opening
Balance Transfers: 0% intro APR, 21 months from account opening on qualifying balance transfers
Regular APR
18.24%, 24.74%, or 29.99% Variable APR
Rewards
N/A
Annual Fee N/A
$0
This no-frills card is a solid choice if your priority is to avoid credit card interest for as long as possible. It offers an incredible 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. The balance transfer fee (5%, min: $5) is higher than some cards — but if you want an equally long intro APR on purchases, then this card is hard to beat. Read Full Review
Great for: 0% intro APR and unlimited cash back
Good/Excellent (670-850)
Intro APR 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 15 months from account opening
Balance Transfers: 0% intro APR, 15 months from account opening on qualifying balance transfers
Regular APR
20.24%, 25.24%, or 29.99% Variable APR
Rewards Earn unlimited 2% cash rewards on purchases.
2% cash rewards
Annual Fee N/A
$0
Welcome Offer Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
$200 cash rewards
This card’s unlimited 2% cash rewards on purchases is the highest we’ve seen for a flat-rate rewards card with no annual fee. It also has an incredibly easy-to-earn $200 welcome bonus and a generous intro APR offer. We simply haven’t come across this combination of top perks in one card before. Read Full Review
Whether you're looking to round out your wallet or open your first credit card, a low interest credit card is a must have. If you ever need to carry a balance or use a credit card to cover an emergency, you don't want to be hit with astronomical interest fees. If you're paying down debt, look for a low interest credit card that comes with a 0% intro APR offer, which could save you hundreds of dollars. Here's everything you need to know about choosing and using low interest credit cards.
Here are the highlights of our top picks for low interest credit cards.
Great for: Long intro 0% APR on balance transfers
The Citi® Diamond Preferred® Card doesn't charge an annual fee and starts you off with an impressive 0% intro APR for 21 months on balance transfers and 12 months for purchases. Though the balance transfer fee is a bit high at 5% ($5 min.) (many of the best balance transfer cards charge 3%), this card's long interest-free balance transfer window and the fact that there's no annual fee make it a standout.
This best low interest credit card is great for: People who want to pay off credit card debt and save money on interest through a balance transfer.
When to consider an alternative: If you want to earn points or cash back, look elsewhere, as the Citi® Diamond Preferred® Card doesn't offer rewards.
>>Read the full Citi® Diamond Preferred® Card review
Great for: Long balance transfer and no late fees
The Citi Simplicity® Card eliminates common credit card fees, as it doesn't charge a late fee, annual fee, or penalty APR. The card also offers a 0% intro APR for balance transfers for 21 months and 0% APR for new purchases for 12 months, which make up for the cards lack of rewards.
This best low interest credit card is great for: Anyone seeking to pay off debt with a balance transfer who wants room for error. The card doesn't charge late fees or penalty APRs and also gives you the flexibility to pick your payment date.
When to consider an alternative: If you're looking for credit card rewards.
This content is not provided by the issuer. Any opinions expressed are those of The Ascent alone, and have not been reviewed, approved or otherwise endorsed by the issuer.
>>Read the full Citi Simplicity® Card review
Great for: Balance transfers and bonus cash back
The Discover it® Cash Back gives you the best of both the balance transfer and cash back worlds. The card offers a introductory 0% APR of 15 months for both balance transfers and purchases, after which the go-to rate of 17.24% - 28.24% Variable APR applies. You'll earn 5% cash back up to the quarterly spending limit on rotating categories (activation required) -- like grocery and restaurant spending -- and 1% cash back on other purchases. In your first year, Discover offers an unlimited dollar-for-dollar match on all the cash back you've earned.
This low interest credit card is great for: Those who want to earn cash back and take advantage of a 0% intro period.
When to consider an alternative: If you're doing a balance transfer and you don't think you can pay off the balance in 15 months. Some cards offer a 0% intro APR of up to 21 months on balance transfers.
>>Read the full Discover it® Cash Back review
Great for: Bonus cash back
The Bank of America® Customized Cash Rewards credit card packs in a big sign-up bonus, no annual fee, a 0% intro APR offer lasting 15 billing cycles for both balance transfers and purchases, and a robust rewards program.
This best low interest credit card is great for: Anyone seeking a generous welcome bonus and cash rewards on top of a 0% intro APR.
When to consider an alternative: If you need more than 15 months to pay off a balance transfer, look for a card with an 18- to 21-month 0% APR.
>>Read the full Bank of America® Customized Cash Rewards credit card review
Great for: 0% purchase and balance transfer intro APR and cash back
The Capital One Quicksilver Cash Rewards Credit Card (see rates and fees) charges no interest on purchases and balance transfers for 15 months and offers flat-rate 1.5% cash back rewards.
This best low interest credit card is great for: Those who want an introductory 0% APR period to pay off debt or finance a big purchase, as well as those who want the simplicity of a flat cash back rate.
When to consider an alternative: Shop for a card with a longer zero-interest period if you need more than 15 months to pay off a balance transfer. If you spend a lot in a certain category, like travel or dining out, you may be able to find a credit card that allows you to earn more rewards on these purchases.
>>Read the full Capital One Quicksilver Cash Rewards Credit Card review
Great for: 0% intro APR for balance transfers and purchases
The Wells Fargo Reflect® Card stands out as a top choice with its impressive lengthy 0% introductory APR offer. In addition, it boasts a wide range of valuable credit card benefits -- no annual fee and a 0% intro APR on both balance transfers and purchases for 21 months from account opening on qualifying balance transfers (after which the go-to rate of 18.24%, 24.74%, or 29.99% Variable APR applies) -- making it a clear frontrunner.
This best low interest credit card is great for: People looking to transfer a balance or finance a major purchase who want the longest 0% APR period possible.
When to consider an alternative: If you're not paying off debt or making a big purchase, you're better off looking for a card that offers rewards, as this credit card doesn't give you rewards.
>>Read the full Wells Fargo Reflect® Card review
Great for: 0% intro APR and unlimited cash back
The Wells Fargo Active Cash® Card is an exceptional cash back card with unlimited 2% cash back, no annual fee, and a $200 cash rewards. Its cash rewards welcome offer is generous, as is its 0% introductory APR offer for 15 months from account opening on qualifying balance transfers for both purchases and balance transfers (after which the go-to rate of 20.24%, 25.24%, or 29.99% Variable APR applies).
This low interest credit card is great for: Those who want to earn unlimited cash back who don't want to worry about different bonus categories.
When to consider an alternative: If your goal is to pay off debt or make a major purchase, look for a card with a longer 0% APR period.
>>Read the full Wells Fargo Active Cash® Card review
Low interest credit cards, or low APR credit cards, are cards that charge a below-average annual percentage rate (APR) on purchases, either on a
or a permanent basis. As of late 2023, the average APR for credit cards was about 21%, so a low interest credit card would be a card with an APR below 21%. The best low interest rate credit cards can save you a tremendous amount of money if you carry a credit card balance, and they can also help you pay down debt faster.
The interest rate you pay on any given credit card depends on a few factors, such as your credit history and overall debt profile. If you qualify for low interest credit cards, you'll be charged less interest than usual, making it more affordable to carry a balance. Some cards even offer 0% intro APRs for several months on both purchases and balances transferred from other cards. Generally speaking, this is the best way to save money on your credit card balances.
There are two main types of low interest rate credit cards:
To compare low interest credit cards, start by deciding if you need:
Next, pick out cards that have the features you're looking for and see how they measure up. To make this easier, use a tool for comparing credit cards side by side.
Let's say that you need a 0% intro APR on purchases to finance a kitchen remodel. In that case, you'd narrow down your search to low interest cards with an intro 0% purchase APR. You could then see which cards have the longest intro 0% APR offers.
As you're comparing low interest cards, it's worth looking at other features besides the APR, such as welcome bonuses and purchase rewards. These also add value and can work well as a tiebreaker if multiple low interest credit cards meet your needs. For example, if you need a 0% intro APR for 15 months or more and you find several cards offering that, you could compare their rewards to make your selection.
When you're ready to get a low APR credit card, here are the steps to follow.
See our guide on how to apply for a credit card for more details.
Any time you're planning to get a new credit card, the first thing you should do is check your credit. You can do this through free credit score services online. Look for one that provides your FICO® Score, because that's the most widely used credit score by lenders.
Review the best low APR credit cards and compare what each one has to offer. Make sure that the cards you pick are all available for consumers in your credit score range. This gives you a better chance of being approved.
Once you've found the right low interest credit card, select the "Apply Now" option. Fill out the application with the required information. After you submit the application, there are three possible outcomes:
If your application is approved, then you're finished. If it's denied, you can either call the card issuer and ask for a reconsideration or choose another low interest card to apply for.
It's important to understand how credit card APRs work so that you understand how much your credit card balance is costing you.
APR stands for "annual percentage rate." It's the rate of interest applied to your balances. Most credit card companies use an average daily balance method for calculating interest. To arrive at the daily interest rate, they divide the card's APR by 365.
To illustrate the impact the best low interest credit cards can have, compare how making a payment of $100 per month on a $3,000 initial credit card balance would reduce your debt over six months in three different APR scenarios:
Month | Balance with 18% APR | Balance with 12% APR | Balance with 0% intro APR |
---|---|---|---|
0 | $3,000 | $3,000 | $3,000 |
1 | $2,945 | $2,930 | $2,900 |
2 | $2,889 | $2,859 | $2,800 |
3 | $2,833 | $2,788 | $2,700 |
4 | $2,775 | $2,716 | $2,600 |
5 | $2,657 | $2,569 | $2,500 |
6 | $2,597 | $2,495 | $2,400 |
Here's the takeaway: After six months, the cardholder with a 0% intro APR would have reduced their debt by nearly $200 more than the cardholder with an 18% APR, even though they both made the same payments.
Low interest credit cards can come in handy if you utilize them correctly. Here are a few tips on how to best put them to use.
Keep one in your wallet to cover emergencies. Ideally, you should have enough cash in an emergency fund to cover at least six months of living expenses. But if you don't have anything in your savings account, or it's not enough to pay for an unexpected expense, you could use a low interest credit card as a kind of backup emergency fund.
Unlike some other options, such as a personal loan, the funds on a credit card are immediately available. And the low interest rate should help keep your payments affordable. You can use our emergency fund calculator, to calculate how much you may need in an unexpected situation.
Use it to finance a big purchase. Low interest credit cards can be a good way to buy big-ticket items you can't afford to pay for all at once. Look for a really low rate -- or, even better, a 0% intro APR on new purchases. You'll want to explore all of your options first though, as it's often wiser to wait until you've saved enough money to pay upfront.
If you go with a 0% intro APR credit card, you could potentially finance the purchase without paying any interest at all. But it's crucial that you make sure you can pay off the balance before the introductory period ends.
Do a balance transfer to pay off debt more quickly. If you're trying to pay off debt with a high interest rate, you know firsthand how crippling those massive interest charges can be. Doing a balance transfer -- that is, transferring your existing debt to a credit card with a lower interest rate -- can significantly relieve that burden.
It will ensure that more of your monthly payment goes toward chipping away at that balance rather than paying interest fees. You can even opt for a balance transfer credit card with a 0% intro APR on balance transfers, but you'll want to make sure you can pay off the balance before your introductory period ends. But be sure to research your options first: If you can qualify for a low interest personal loan and use that to pay off your debt, you might save even more money.
Don't use it as an excuse to rack up more debt. If you're someone who's trying to save money or get out of debt, then a low interest credit card may seem like a great option. However, it's important to remember that the low rate is only helpful if you're disciplined enough to not overspend.
In fact, using a low interest credit card as an excuse to rack up even more debt could defeat the whole purpose of your financial goals. So, before you jump on board with a low interest card, take the time to examine your finances and determine if you'll be able to stay within your means. With a bit of self-discipline, you can make the most of a low interest credit card and get back on track with your finances.
Here are some examples of when a low interest credit card can be useful:
While we'd never advise carrying a balance for long periods of time, a low interest credit card can be better than the alternatives. You would pay about $10 in interest every month on a $1,000 balance at a 12% APR. That's far better than paying a $35 overdraft fee or getting a loan shark rate from a payday loan store.
Card | Rating | Great For |
---|---|---|
Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Long intro 0% APR on balance transfers |
|
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: 0% intro APR on purchases and balance transfers and unlimited match for cash back |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Long intro APR and bonus cash back |
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Unlimited cash back and card perks |
|
2024 Award Winner
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: 0% intro APR for balance transfers and purchases |
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: 0% intro APR and unlimited cash back |
To qualify for a 0% interest rate on a credit card, you'll typically need good to excellent credit, which is usually defined as a FICO® Score of at least 670. Keep in mind, though, that a 0% interest rate is only temporary. Depending on the card, you'll start accruing interest after 12 to 21 months.
A balance transfer won't affect your credit score because you're simply transferring a balance from one credit card to another. However, it could indirectly affect your score in a few ways: If you're able to pay off your principal faster because you're not paying interest, it could help your credit score. But if you close an account after transferring the balance, it could hurt your score in the short term.
If you're able to pay off a zero-interest credit card early, you should do so. Paying off the balance will likely help your credit score, plus you'll free up room in your budget. However, if you have other debts that are accruing interest, consider focusing on those first. Then aim to pay off the 0% card before the interest-free period ends.
It is sometimes possible to lower your credit card interest rate. If you've never missed a payment, or if you've diligently been paying off a balance for a while, your credit card issuer might be willing to reward you by decreasing your APR slightly. Give customer service a call and request a lower interest rate -- the worst that can happen is they'll say no. If that's the case, you can look into opening a low interest credit card instead.
Our Credit Cards Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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