Finance

Best Low Interest Rate Credit Cards for 6 to 24 months

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These are some of the Best Low Interest Credit Cards for this Month. They have Cash Rewards credit card which is one of many 1.5% flat-rate cash-back cards on the market. The top 10 list as follows;

  1. Wells Fargo Reflect® Card: Best feature: Lengthy 0% introductory APR.
  2. Discover it® Balance Transfer: Best feature: 18-month 0% APR on balance transfers.
  3. Blue Cash Everyday® Card from American Express: Best feature: Cash back on everyday purchases.
  4. Discover it® chrome: Best feature: Gas cash back.
  5. Citi® Diamond Preferred® Card: Best feature: 21-month 0% introductory rate on balance transfers.
  6. Citi Rewards+® Card
  7. BankAmericard® credit card
  8. Bank of America® Customized Cash Rewards credit card
  9. Bank of America® Unlimited Cash Rewards credit card
  10. American Express Cash Magnet® Card

Declaimer: The information for Credit Card updates has been collected freely online for educational purposes only. No card is currently in use or available on the site. The information has not been reviewed or provided by the card issuer and it is accurate as of the date posted.

Best Fixed Rate Cards Summary

1. Wells Fargo Reflect® Card

Reasons why this is Wells Fargo Reflect® Card one of the best low-interest credit cards: The basic reason is that Wells Fargo Reflect card comes with a very long eighteen-month 0% introductory APR on transactions. This includes all card payment or purchases and balance transfers. Furthermore, cardholders can as well extend the promotion by about 3 months. but this can only happen if they make all of their minimum payments on time without failure.

2. Discover it® Balance Transfer

Reasons why this is Discover it® Balance Transfer one of the best low interest credit cards: The major reason is that Discover-It Balance Transfer card comes with an 18-month 0% introductory APR on eligible balance transfers. It also comes with whopping 6-month 0% introductory APR on purchases. Therefore, all cardholders can pay off a balance over a period of time without incurring extra interest fees. But after the introductory period is over, the credit card company will charges variable APR between 13.49% and 24.49% exclusively.

3. Blue Cash Everyday® Card from American Express

Reasons why this is Blue Cash Everyday® Card one of the best low-interest credit cards: In this type of card, the most creditworthy applicants will score a low annual percentage rate on this card. However, it is the among the best bet for people hoping to earn cash back on daily transactions. If you choose this card, you’ll basically get a 3 percent cash back of up to $6,000 annually. You can access these at most U.S. supermarkets as well as 1% back; 2% back at gas stations and department stores. Additionally, you can also get 1% payback on other purchases online. Blue Cash Everyday Cardholders receive up to $200 statement credit after they spend $2,000 in purchases. But you must make these purchases with your new Card within the first 6 months of getting it.

4. Discover it® chrome

Reasons why this is Discover it® chrome one of the best low-interest credit cards: First of all, Discover it chrome gives their cardholders a 15-month 0% introductory Annual percentage rate. This APR is mainly for goods purchases, services and balance transfers with no annual fee charge. Immediately after that time frame, there is a straight 13.49% to 24.49% variable Annual percentage rate. All fuel/gas as well as restaurant purchases can earn 2% cash back on up to $1,000. However, this must be in a combination of purchases each quarter. In addition, 1% cash back is given on all other purchases online. Another wonderful advantage is that you’ll pay no annual fee for this credit card.

5. Citi® Diamond Preferred® Card

Reasons why this is Citi® Diamond Preferred® Card one of the best low-interest credit cards: This type of credit card is beneficial to those people who wants to do a balance transfer. The card company offers a 0% Intro APR for as long as 21 months on balance transfers. It begins from the date of your first transfer as well as 0% Intro Annual percentage rate for 12 months. But these incentive begins with purchases from date of account opening. However, after that time frame, the variable APR will be 15.99% – 25.99%, depending on the creditworthiness of the customer.

6. Citi Rewards+® Card

Reasons why this Citi Rewards+® Card is one of the best low-interest credit cards: In the beginning, the Citi Rewards+ Card comes with a 0% introductory annual percentage rate. But this is for balance transfers & purchases for the first 15 months. Now, after that period is over, the variable Annual percentage rate will be 15.74% to 25.74% based on your borrowing power.

7. BankAmericard® credit card

Reasons why this BankAmericard® credit card is one of the best low-interest credit cards: It is among this list because for the first eighteen-months of membership, cardholders receive a 0% introductory APR. Users can gain this on all purchases including balance transfers made within the first sixty-days. Presently, there is no penalty APR for this Bank-Americard credit card.

8. Bank of America® Customized Cash Rewards credit card

Why this Bank of America® Customized Cash Rewards is one of the best low-interest credit cards: The issuer offers a 0% introductory APR for the first 15 months on balance transfers made within 60 days of account opening. Also, it earns you 2% back at convenient & grocery stores and wholesale clubs on up to $2,500 every 3months. Thats not all, gas purchases also count as one of the six benefit category choices that allow you to receive 3% back on purchases made.

9. Bank of America® Unlimited Cash Rewards credit card

Reasons why this Bank of America is one of the best low-interest credit cards: The Bank of America Unlimited Cash Rewards credit card offers a 0% APR on purchases for the first 15 billing cycles. This rewards also come on balance transfers made in the first 60 days of obtaining it. As a full account owner, you can also receive a $200 online cash rewards bonus. But you will have to have spent upto $1,000 on the card in the first 90 days of issuance. Finally, the American Bank credit card earns about 1.5% cash back on all online or offline purchases, with no maximums or expiration date.

10. American Express Cash Magnet® Card

Reasons why this American Express Cash Magnet is one of the best low-interest credit cards: This has real appeal for those individuals who wants flat-rate cash back. You may likely have up to 1.5% cash back on all purchases this card after delivery. As a matter of fact, a good credit standing lets you access the lowest annual percentage rate offer. As a plus, all new cardholders get 0% APR on purchases for 15 months of issuance.

What You Should Know about Best Low Interest Credit Cards

As an ordinary American, a low-interest credit card can be a valuable tool to help you save money if you sometimes carry a balance. A lot of credit cards basically come with introductory interest-free periods of at least a year. This might even help you to finance a major purchase or pay down debt. Here’s how you can pick the best card for your needs and goals. Please note that terms and conditions apply.

What Are the Types of Low-Interest Credit Cards?

Issuers offer many different kinds of credit cards with low interest, such as:

  • Low-interest credit cards with rewards.
  • Low-interest travel cards.
  • Low-interest secured credit cards.
  • Low-interest cards for fair credit scores.
  • Low-interest credit cards with 0% annual percentage rate periods.

Low-interest card with a 0% introductory APR

Generally, a low-interest card with a 0% introductory APR likely keeps that promotional rate for 12 to 21 months. It charges a balance transfer fee of 3% to 5%. If you plan to transfer a balance to pay off debt as well as saving on interest, remember to account for this fee when calculating your monthly payment. Why? This is to ensure you can clear the charges during the introductory window of 12-21 months.

Typically, you will need good credit or better. What does that mean? It means that a Fair Isaac Corporation (FICO) score of at least 670 – to qualify for the best low-interest credit cards. (A FICO credit score is a tool used by many lenders to determine if a person qualifies for a credit card, mortgage, or other loan). Card issuers will also look at your debt-to-income ratio and review your credit report. Lastly, if you have a bankruptcy or a history of late payments, you might not be approved for a low-interest credit card.

What Are the Pros and Cons of Low-APR Credit Cards?

Pros / Advantages of Low-APR Credit Cards

  • Low APR cards can save you money. Especially if you sometimes carry a balance on your credit card, you could save on interest with a low-APR card. But think about it, the best way to avoid interest is to pay off your credit balance.
  • It may have a 0% introductory APR. Of course, low-interest credit cards often have 0% introductory APRs. This in-turn will give you the opportunity to pay off a balance without paying any interest.

Cons / Disadvantages of Low-APR Credit Cards

  • Good Credit score requirements. As a applicant, you will need a credit score of about 670 or even better before you can qualify for one of the best low-APR cards. Also, a higher score will help you get a better rate.
  • Low APR cards may not earn rewards. This type of Low-APR credit cards may not earn any rewards. The Wells Fargo Reflect Card does not, for example. But other low-interest cards do offer rewards, such as Chase Freedom Unlimited. Be sure to do your research to find a card that makes sense for you.

How to Choose a Low-Interest Credit Card

Here are six simple steps to find the right low-interest credit card.

1. Make a choice to either apply for a low-interest credit card, a 0% APR card or both.

Nobody plans for negative things to happen to them that requires urgent funds to solve the problem, but if it does happen, you may be needing a fast cash. So if for example you run into a financial emergency and need to carry a balance for a few months, then these the low-interest card. This is an options that help you avoid racking up heavy interest rate charges. But you have to be very sure to weigh the balance and know whether you can apply for a new credit card or not.

2. Compare Annual percentage rates (APRs).

It will be necessary in aiming to find the card that fits your needs with the lowest APR. Meanwhile, you have to bear in mind that other factors. These factors includes balance transfer offers, annual fees as well as additional charges, which may outweigh the benefit of having the absolutely lowest Annual percentage rate.

3. Minus the Annual fees from Total Amount.

Most credits card in banks has annual fee charges. Therefore, if you decide to choose a credit card with an yearly fee, ensure this charge doesn’t outweigh your interest savings. Furthermore, if you’re making any plan to transfer a balance to pay off debt, be sure the annual fee won’t slow your progress on paying back the cash balance.

4. Ensure You Understand Late Payment Fees and Penalty APRs.

Some credit issuers charges up to $40 for each late payment. They can even go ahead to apply a penalty rate that is significantly higher than your regular APR. In the long run, you may even lose your introductory Annual percentage rate. Please, don’t let this happen to you because you won’t like it. You can either set up text message or email reminders so you never miss any payments.

5. Carefully Compare cardholder benefits.

A lot of credit cards companies have wonderful benefits to their customers. You can enjoy rental car insurance, cellphone protection together with extended warranty coverage. Believe it; when you take advantage of these types of advantage, you get extra value from the credit card.

6. Estimate your cash back rewards.

Several credit cards that earn cash back rewards, miles, credit score or points for purchases also offer deals such as 0% interest. This happens on balance transfers for a small time frame. Note that balance transfers usually don’t earn rewards at all. In addition, you can try to wait until you pay off a transferred balance before you use your card for new purchases. You can use cash only within these periods.

Making the Most out of a Low-Interest Credit Card

Specifically, all it takes is a simple calculation to completely figure out whether a low-interest credit card will save you some cash in the long run. Now, we can take a look at one scenario to see how easy it can be to calculate your savings, or loses correspondingly.

If you make use of a low-interest credit card with no balance for a $5,000 purchase and then put $300 toward it monthly, how much could you possibly save? If you use a card with a purchase Annual percentage rate (APR) of 18%, you will pay about $5,798, including about $798 in interest. Now, with a low-interest card that has a purchase APR of 14%, you will pay about $5,592, including about $592 in interest.

Two Best Tips for saving money with a low-interest credit card:

  • Hurry and Transfer a balance to a low-interest card with a 0% introductory APR. It is always great to have a plan to pay off the balance before the interest-free period expires. but, do not forget that using a low-interest card will limit the damage. How? In case part of the balance is still left when the regular rate applies. Also, ensure the balance transfer fee is also less than the amount you will save in interest.
  • Always Ask your card issuer to lower your rate. Truly speaking, your financial odds are best if you have a long and positive payment history with the credit issuer.

How to Successfully Reduce the Credit Card Interest You Pay

Here’s how to spend less on credit card interest, which means more money stays in your pocket.

1. Always Pay off your balance.

  • The best way to pay less credit card interest is to pay off your balance by the due date each month. If your card has a balance, you can save a lot in interest just by making more than the minimum payment.
  • The bigger the payment you make, the sooner you will eliminate your debt and the more you will save. You can make multiple monthly payments if that is more manageable.
  • If you have debt to pay off on several credit cards, you can prioritize it either by APR, starting with the highest, or by balance, beginning with the lowest. Paying off cards from highest APR to lowest APR, though, will save the most money.

2. Try to Ask your issuer to reduce your rate.

  • Try calling customer service and requesting a lower APR. Be polite, and be prepared to hear “no.” But don’t be afraid to call and try again if you are rejected the first time.
  • Research what comparable cards charge, and have those details on hand when you call. Issuers don’t want to lose your business and may be willing to match a competitor’s rate if you have been a good customer.

3. You can Consolidate debt with a 0% APR credit card.

  • You can transfer credit card debt to a new card with a 0% APR period that buys you time to make interest-free payments. The length of this interest-free window depends on the card, but it could be 12 to 18 months. You may also be required to complete your balance transfers within a certain time.
  • Expect to pay a balance transfer fee of 3% to 5%. Even then, you can still knock out debt faster than you would otherwise because all payments during the interest-free period go toward your principal balance.
  • Plan to pay off your debt before the 0% introductory rate expires and the issuer begins to charge the standard APR. Also, make sure to know the regular rate in case you have a balance remaining.

4. Carefully get a low-interest card for future spending.

  • You’ll have your pick of cards if your credit score is good. If you frequently carry a balance, look for a card with a low ongoing rate. A card with a 0% introductory APR might be better if you plan to carry a balance only in the short term.

If you’re Comparing Two Low-Interest-Rate Credit Cards

An example of two low-interest credit cards features their rates and fees, as well as other key features. Try this exercise with any set of low-APR credit cards for comparison.

BankAmericard credit card

  • 0% introductory APR: 18 billing cycles for purchases and balance transfers made in the first 60 days.
  • Regular APR: 13.24% to 23.24% variable on purchases and balance transfers.
  • Balance transfer fee: 3% of the amount transferred or a $10 minimum.
  • Annual fee: None.
  • Foreign transaction fee: 3%.
  • Rewards program: None.
  • Card benefits: Free FICO score access, no penalty APR, virtual card numbers for security when shopping online.
  • Minimum credit score: 670 FICO.

Discover it chrome

  • 0% introductory APR: 15 months for purchases and balance transfers.
  • Regular APR: 13.49% to 24.49% variable on purchases and balance transfers.
  • Balance transfer fee: 3% introductory balance transfer fee and up to 5% for future balance transfers.
  • Annual fee: None.
  • Foreign transaction fee: None.
  • Rewards program: 2% cash back at gas stations and restaurants on up to $1,000 in combined quarterly purchases; all other purchases earn unlimited 1% cash back.
  • Card benefits: Issuer matches all the cash back you earn at the end of your first year, redeem cash back anytime in any amount, free monthly FICO score access, free Discover Identity Alerts.
  • Minimum credit score: 670 FICO.

Best Low-Interest Credit Cards Methodology

This site is among other U.S. News websites that has been helping consumers make money decisions for a long time now. For our Best Low-Interest Credit Cards list, we took time to factor in overall satisfaction data, annual fees, APRs, balance transfer offer lengths and introductory APR lengths for purchases. The satisfaction data is based on an annual nationwide survey.

To enjoy this benefit, the card must have a 0% APR offer of 14 months or more for purchases. Additionally, balance transfers and an ongoing minimum APR will be 15.99% or even lower. Several cards on our list offer even better terms in one or more of these categories. Think about how you’ll use the card and compare offers to determine which would be the right fit.

Low-Interest Credit Cards FAQs

What Is a Low-Interest Credit Card?

A low-interest credit card is a credit card that charges a low APR. For this list, U.S. News considers cards with an ongoing minimum APR of 15.99% or lower and a 0% APR offer of 14 months or more for purchases or balance transfers.

How Do I Lower My Credit Card Interest Rate?

Ultimately, there are plenty methods to minimally reduce the interest rate on your credit card. First option is to call your credit card issuer and request a lower interest rate. Second option is to transfer your balance to a balance transfer card, which typically requires a credit score of 670 or less.

What Is a Good Interest Rate on a Credit Card?

Your rate largely depends on your credit score and what’s known as the prime rate, which changes with the federal funds rate. Generally, the better your credit score, the lower your interest rate will be. According to the Federal Reserve, the average credit card APR for accounts that accrue interest was about 16% in the first quarter of 2022, so a card that charges a rate below that is offering a better-than-average rate.

Credit union members may qualify for cards with much lower APRs through their credit union.

Is It Possible to Negotiate Your Credit Card Interest Rates?

Yes of course, but you’ll need to make the case that you’re not a big risk to the company, together with boosting your credit score helps. Finally, since other credit card issuers may have lower interest rates, anyone can use competing offers for balance transfer credit cards as leverage when contacting your company to ask for lower rates. See trending topics below;

  • Top best credit cards
  • credit cards with low interest rates
  • 24 months no interest credit card
  • 0% interest credit cards
  • best zero interest credit cards
  • credit card with low interest rate and no annual fee
  • best credit card with no interest for 24 months
  • best fixed rate credit cards

What Are Some Alternatives to Low-Interest Credit Cards?

  • 0% APR credit cards.
  • Home equity loan.
  • Loan from a family member or friend.

Please note that some of the card offers on this site are from companies who are advertising clients from Google and this site. Advertising considerations may impact where offers appear on the site but do not affect any editorial decisions, such as which card products we write about and how we evaluate them.