Best Low-Interest Rate Credit Cards & Offers in 2022
A low-interest credit card is an outstanding tool to utilize short-term borrowing. Along with favorable interest rates, these credit cards often have many other perks that can benefit cardholders.
Nearly a year and a half after initial pandemic lockdowns, American spending has soared. Simultaneously, credit card debt has fallen significantly. But as spending creeps back, a low-interest credit card may be favorable for consumers looking to finance a large purchase or home renovation project or refinance high-interest debt.
Americans pay hundreds of billions each year in credit card interest. However, low-interest credit cards can help you avoid excessive interest fees and give you great benefits at the same time.
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MoneyGeek Quick Tip: Low interest rates are available on nearly any type of loan. Credit cards, mortgages, auto loans and student loans all have significant differences in interest rates. Still, with an excellent credit score and due diligence, you can find a product that fits your needs and gives you the low interest rate you desire.
MoneyGeek’s Take: Best Low-Interest-Rate Credit Cards
MoneyGeek experts looked at several of the best low-interest-rate credit cards to find the top cards available. We compared cards based on their interest rates, rewards programs and initial bonus offers. We looked for cards that offered 0% introductory APR offers as well.
Summary of Top Cards
Best Low-Interest-Rate Credit Cards in May 2022
The best low-interest-rate credit cards can be very similar when put side-to-side. Looking at the details of each card can help you determine the best fit for you. Some specifics to consider include the rewards program offered, the value of points earned, annual fees, additional insurance policies or benefits, and protections given to customers.
Credit Cards with Low-Ongoing Interest Rates
The low-interest-rate credit cards featured on our list offer points or cash back in return for your spending. However, keep in mind to never spend more money for the sake of earning more credit card rewards. Why pay $1 to make a few cents back?
FEATURED
Simmons Rewards Visa Signature
A great no annual fee card that offers rewards and travel benefits
ExcellentCredit Needed
$0Annual Fee
12.25% to 20.25% VariableReg APR
0% Balance Transfer OfferOther Perks
We love the Simmons Rewards Visa Signature card because of its relatively low interest rates on purchases, balance transfers and cash advances.
Meant for people with excellent credit, this card gives you the ability to earn 1.25 reward points for every dollar you spend.
A 0% intro APR offer on balance transfers gives you easy means to save some money while paying off other high-interest credit card debt.
If you find yourself in a tight spot while traveling, you might benefit from the travel assistance and travel coverage this card provides.
Pros
Low interest on purchases and balance transfers
No annual fees
Competitive cash advance rate
Intro 0% APR offer on balance transfers for the first 12 months
No balance transfer fees after the promotional period
Earn 1.25 points for every dollar spent on purchases
Reward points for cash back, merchandise, airfare or vacations
Travel and car rental coverage
Visa Signature perks
Cons
Foreign transaction fees
Cash advance fees
Balance transfer fee during promotional period
Low interest rate
$0 annual fee
Intro 0% APR offer on balance transfers stays in effect for 12 months from account opening
Earn 1.25 reward points per $1 spent
Redeem reward points as cash back, or use them to pay for merchandise, gift cards, car rentals, vacations or airfare
Car rental coverage
Travel accident insurance of up to $1,000,000
Get access to access to complimentary 24-hour Visa Signature concierge, exclusive hotels and special entertainment packages
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
We love the Simmons Visa credit card because it gives people with excellent credit a great no-frills alternative. It comes with an extremely low interest rate and no annual fees for the life of the card.
This card might also work well for you if you wish to use it for transferring a balance from a high-interest card. A 0% APR offer on balance transfers stays in place for the first 12 months.
A complimentary worldwide travel accident cover provides peace of mind when you're traveling locally or overseas.
Pros
Low interest on purchases and balance transfers
No annual fees
0% APR offer on balance transfers for 12 months
Competitive cash advance rate
Complimentary car rental and travel coverage
No balance transfer fees after the first 12 months
Cons
Cash advance fees
Foreign transaction fees
Balance transfer fees during introductory period
Low interest rate
No annual fees
0% interest on balance transfers for the first 12 months
Car rental coverage
Up to $1,000,000 in travel accident insurance
Cash advance and foreign transaction fees apply
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Cards with 0% Interest on Balance Transfers or New Purchases
A credit card with 0% interest on balance transfers or new purchases can be seen as nearly an interest-free loan. It is quite popular to put a large purchase or transfer an old credit card balance to one of these cards, to utilize an interest-free loan.
FEATURED
Citi Diamond Preferred Card
A great no annual fee card with a fantastic intro APR offer
ExcellentCredit Needed
$0Annual Fee
13.74% - 23.74% VariableReg APR
0% APR for 18 months*Other Perks
We love the Citi Diamond Preferred Card because of its low ongoing interest rate and great intro APR offer. As a new cardholder, you benefit by paying no interest on purchases for the first 18 months. Depending on your creditworthiness, a low ongoing rate might apply after that period.
Not having to pay any annual fees is a definite plus.
Since you get a four-month limit to avail of the intro balance transfer offer, this is a feature you may want to use quickly, especially if you have an outstanding balance on a high-interest card.
Cardholders also benefit from purchase protection and access to Citi Entertainment.
Pros
0% APR introductory term extends to 18 months
$0 annual fees
Free online access to FICO score
Access to Citi-branded tickets for dining experiences, events, and more
Cons
Limited time to carry out balance transfers
No rewards
Foreign transaction, cash advance and balance transfer fees
Balance transfer fee is 3% of the amount you transfer or $5, whichever is greater
0% APR for 18 months, then a variable APR of 14.74% to 24.74% based on your creditworthiness
Access to Citi Entertainment rewards and tickets
Free FICO score access through your online account portal
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An excellent card with no annual fees and an extended intro APR offer
Good, ExcellentCredit Needed
$0Annual Fee
14.49%-24.49% VariableReg APR
0% APR for 20 months*Other Perks
The U.S. Bank Visa Platinum Card is an excellent option for people who wish to pay no interest on purchases and balance transfers for an extended duration because this card's 0% APR offer stays in place for the first 20 months. After the intro period, a creditworthiness-based interest rate applies.
You pay no annual fees for the life of the card. You may use its complimentary cell phone protection in case you lose or damage your phone. Fraud protection safeguards you against possible misuse of your card.
If you're looking for a card to pay off high-interest credit card debt through a balance transfer within 20 months, this card might work well for you.
Pros
No annual fee to increase your expenses
Excellent intro APR period for purchases and balance transfers
Comes with cell phone insurance
Flexible bill payment dates
Cons
Foreign transaction and cash advance fees
No rewards
0% APR for 20 months after account opening applies on purchases and balance transfers
Variable 14.49%–24.49% APR after introductory period
Balance transfer fee is 3% of the transfer amount or $5 minimum, whichever is greater
Up to $600 cell phone protection against theft or damage, provided you pay your monthly cellular bill with this card
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Our lists of the best credit cards are based on publicly available data from card issuers and other reputable sources like the Consumer Finance Protection Bureau. We review each card's fees, interest rates, rewards, benefits and more to assign a rating for each feature. These ratings are stack ranked and weighted for each card category to determine our top selections for each type of user. Because card details change regularly, we revisit our data each month to update our ratings, recommendations and other card information as needed. Learn more about our data collection and ranking process.
Top Rating Criteria for Low-Interest-Rate Cards
On-Going APR
0% APR Offers
Balancer Transfer Offers
Comparing the Value of On-Going Low Interest vs. 0% Interest Offers
For those interested in reducing the amount they pay in credit card interest, the best way to avoid interest altogether is to pay your credit card balance in full. While that isn’t always possible, the next best thing is to consider a credit card with zero interest or low interest rates.
It is nearly always the case where paying less interest is better. However, in the world of credit cards, understanding the value of each of these cards and which situation is more appropriate for which card is crucial.
It is best to use an ongoing low-interest-rate credit card if you:
Have revolving credit card debt balances
Pay over 18%+ interest rate on your current credit card
Want to earn rewards (i.e., points or cash back) for your purchases
While it is never advantageous to pay credit card interest, sometimes, it is a necessary evil. A 0% interest credit card can be beneficial if you:
Want to make a large purchase(s) and need short-term financing
Are uninterested in credit card rewards
Can handle a hit to your credit score
Quickly compare the top low-interest credit cards in our handy table, below. The links in the table below will take you to our partner’s site, CardRatings.com, where you can compare and apply for a selected credit card.
MoneyGeek’s Quick Guide to Low-Interest-Rate Credit Cards
A low-interest-rate credit card is an excellent product to have in your wallet to give yourself spending flexibility. In addition, using your credit card responsibly and ensuring your statement is paid on time each month can quickly improve your credit score.
However, just because a card has a low interest rate doesn’t mean that any extra money out of your pocket is a good thing. When looking for a low-interest credit card, be sure to read the terms and conditions of each credit card carefully. If the card advertises an APR over 12%, that would be considered a high interest rate. Anything below 10% is regarded as a low-interest credit card.
If you have a large purchase coming up, or revolving credit card debt, consider sitting down and running the numbers of how much interest you would accrue with a low-interest-rate credit card. Interest rates are important, but what you’ll spend in interest overall is just as crucial to consider.
Here are a few benefits to having a low-interest credit card.
Short-Term Lending: If you are running into financial difficulty and need to make a purchase, a low-interest credit card is an excellent product to do that. If you go this route, be sure to pay your bill off as quickly as possible. The faster it’s paid, the less interest you’ll accrue.
Rewards Programs: Typically, credit cards with 0% introductory APR offers don’t offer robust rewards for your spending. Low-interest credit cards will likely offer either travel rewards or cash back to incentivize spending.
How Do Low-Interest-Rate Credit Cards Work?
Low-interest-rate credit cards are simple products. The credit card issuer offers you flexible spending and repayment terms while you pay them an interest rate for the service.
The benefit of using a low-interest-rate credit card is that you have flexibility with how much you pay back over time without unreasonably high interest rates. This strategy is typically good for a large purchase — such as a TV or appliance — that you plan to pay off relatively quickly.
Once your monthly balance is calculated, you’ll be charged interest on the amount not paid off.
For example, let’s say you have a $1,000 balance on a low-interest credit card, and you only pay $100 per month at a 9% interest rate. Your total amount of interest you will pay is $36 over 11 months. For many, this interest rate is nominal compared to the overall balance.
However, with that same $1,000 balance on a card with an 18% interest rate, paying $100 per month will cost you $75 over 11 months. That’s double the interest accrued on a low-interest credit card.
Low-Interest-Rate vs. Regular Credit Cards
It can be challenging to decipher the differences between low-interest-rate credit cards and regular credit cards. The standard interest rate for many credit cards will hover around 18%, which is high. At that interest rate, it’s not advised to have a revolving balance. Additionally, it’s rare to see a credit card ever advertised as “low interest.”
The chart below can help you distinguish between low interest rates, somewhat high interest rates, high interest rates and extremely high interest rates.
How to Make the Most Out of Low Interest Rates or Offers
A low-interest credit card is a great tool to utilize when you need short-term financing for a purchase.
If you regularly carry balances on your credit card, it’s best to strategically have them on low-interest credit cards to avoid spending more money on interest than necessary. Additionally, you may also qualify for a 0% introductory APR where you can transfer your balance to a card that won’t accrue any interest for a select period.
Keep in mind that if you’re a loyal and on-time paying customer, a credit card issuer may lower your interest rate if you ask. Issuers spend millions of dollars in advertising to get your business, so it benefits them to lower your interest rate rather than lose your business.
Low-Interest-Rate Credit Cards for Paying Down Debts
Many people consistently find themselves in the never-ending cycle of credit card debt because of high interest rates. If paying interest is a regular occurrence for you, consider that there may be a better option available to make your interest payments and debt shrink.
Low-interest rate credit cards are an excellent way to help pay down debts. With many credit card interest rates around 18%, transferring that debt to a card with a low interest rate or even an introductory 0% APR rate can save you significant amounts of money each month.
Low-Interest-Rate Credit Cards for Financing Big Purchases
A low-interest-rate credit card can be a convenient way to make a large purchase without accruing excessive interest.
For example, let’s say you purchase a $1500 television for your living room but want to spread payment over 12 months. You could utilize the Simmons Rewards Visa Signature Card with a 0% APR for 12 months on balance transfers or a modest 10.25% variable rate APR.
If you decide to take advantage of the balance transfer offer, it will cost 3%, or $45, to transfer the balance over. And then you will have a 0% interest rate for 12 months. Or, if you make the purchase directly on the card, you’ll pay $98 in total interest when you pay $100 a month for 16 months.
Low-Interest-Rate Credit Cards for Carrying a Balance
Carrying a balance on a credit card is usually cautioned against, and for good reason. It is never advised to spend more on interest fees than you need to. However, some interest can be a small cost for much-needed financial flexibility.
A credit card with a 9% interest rate and a $2000 revolving balance only accumulates $15 per month in interest if you pay $150 per month.
FAQs About Low-Interest-Rate Credit Cards
Low-interest credit cards can seem to be too good to be true, but they aren't. Low-interest options are an excellent choice for those who want purchasing power at a relatively small cost.
Here are a few of the most commonly asked questions about low-interest-rate credit cards.
To qualify for a low-interest-rate credit card, you’ll likely need at least a credit score of 600. However, keep in mind that your credit score isn’t the only factor considered when you apply.
Someone could be denied a low-interest-rate credit card because of a low credit score, high debt-to-income ratio, lack of employment history, delinquency or bankruptcy.
If you’re paying an exorbitant amount of interest on credit card debt, you may want to consider transferring some of your revolving debt onto a low-interest credit card. Alternatively, consider taking out a personal loan to consolidate and pay your debt.
It’s unlikely, but it’s worth a shot. Worst case scenario, you’ll be denied for the low-interest credit card. If that is the case, consider a secured credit card to help build up your credit score.
Low-interest-rate credit cards are a good option for nearly everyone as they charge lower interest fees than other credit cards.
Yes. As long as you pay your credit card statement on time, a low-interest credit card can help you build a positive credit history.
It is highly unlikely. It’s best to stick with secured credit cards to begin building back your credit score.
Yes, many low-interest credit cards offer rewards. Be sure to look at each card individually to see what type of rewards it offers.
There are several credit cards available that offer introductory 0% interest offers. The pitfall of these credit cards is that the low introductory offers are only for a finite amount of time. Once the time is up, the credit card will return to a normal interest rate.
Interest rate fluctuation on credit cards is very normal and occurs in reaction to federal interest rates dictated by the Federal Reserve.
Low-interest-rate credit cards are a great way to lower your expenses each month. The best way to save money is to avoid accruing interest altogether. When that isn’t an option, paying lower interest on your balances is always better.
Remember that as a customer of the credit card companies, they want to work with you. If you’re struggling to pay off credit card debt, or simply need your interest rates lowered, don’t hesitate to give customer service a call. It could help you out more than you think.
Expert Advice: Finding the Right Low-Interest Credit Card
In what way can making a large purchase on a low-interest credit card hurt a cardholder’s credit score?
What can people do to increase their odds of getting lower APRs on their credit cards?
Is it possible to get a lower interest rate on an existing card? If so, how can one go about making it happen?
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Brett Holzhauer is a personal finance reporter that has written for several leading publications and mentioned in many others such as Forbes Advisor, Lending Tree, CNBC and ValuePenguin. An alum of the Walter Cronkite School of Journalism at Arizona State, when he is not reporting, Brett is likely scuba diving, golfing or watching college football. He tweets regularly at @brett_holzhauer.
*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available. Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Advertiser Disclosure: MoneyGeek has partnered with CardRatings.com and CreditCards.com for our coverage of credit card products. MoneyGeek, CardRatings and CreditCards.com may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.