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.
Use the links below to find the information you’re looking for quicker:
- I’m looking to compare and find low-interest-rate credit cards.
- I’m here to find out how to choose a low-interest-rate credit card.
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?
FEATUREDSimmons Rewards Visa SignatureA 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
- Simmons VisaA fantastic low-interest card with no annual fees
- ExcellentCredit Needed
- $0Annual Fee
- 10.25% to 18.25% VariableReg APR
- 0% Balance Transfer OfferOther Perks
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.
FEATUREDCiti Diamond Preferred CardA 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
- U.S. Bank Visa Platinum CardAn 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
How We Rank Low-Interest-Rate Credit Cards
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
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.
Scroll for more
- Card NameAnnual FeeReg APR0% Interest Offers
- $012.25%-20.25% Variable0% Balance Transfer Offer
- Simmons Visa$010.25%-18.25% Variable0% Balance Transfer Offer
- $013.74%-23.74% Variable0% APR for 18 months*
- $014.49%-24.49% Variable0% APR for 20 months*
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.
>> MORE: How Does Credit Card Interest Work?
- Credit Card RateAPR
- Somewhat High-Interest10-14%
- Extremely High-Interest19%+
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.
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?
Professor of Economics at Thomas More University
Ruth Badger Pixley Professor of Social Sciences and Professor of Business at Illinois College
Associate Professor of Finance and Chair of the Department of Accounting & Finance at at College of Saint Benedict/Saint John's University
Assistant Professor of Insurance & Risk Management at the University of Central Arkansas
Associate Professor at Saint Leo University
Instructor of Finance at the Labovitz School of Business and Economics at the University of Minnesota
Assistant Professor of Finance at Mississippi State University
Associate Professor of Finance at Menlo College
Adjunct Professor of Accounting, Gwynedd Mercy University
Associate Professor of Finance, Director - Institute for Financial Planning & Analysis at Illinois State University
Professor of Finance at Montclair State University and ETF Author and Speaker
Assistant Professor at Baldwin Wallace University
Assistant Professor of Finance at Stetson University
Clinical Associate Professor and Chair of the Department of Economics at The Catholic University of America
Associate Professor of Accounting at the University of St. Thomas, Opus College of Business
Professor of Economics and Finance at Southern Illinois University Edwardsville
Assistant Professor of Accounting at Wingate University
Professor at the Neeley School of Business at Texas Christian University
Professor of Finance at Babson College
Professor of Marketing at New York University Stern School of Business
Associate Professor of Finance at University of Siena
Associate Professor - Department of Finance at Florida International University
Faculty Member and Director of Entrepreneurship, School of Business; Managing Director of the Eagle Angel Network at North Carolina Central University
Assistant Professor of Finance at Eastern New Mexico University
Professor in the Department of Economics, Finance and Real Estate at Monmouth University
Assistant Professor of Ag Business at the University of Southern Indiana
Professor of Marketing at Lewis University
Assistant Dean and Assistant Professor of Finance at Maryville University
Vice President and Executive Director of The Regency Foundation at Cairn University
Associate Professor Business & Economics at Huntington University
Michael A. Ruane Professor of Marketing at Providence College School of Business
Head of the Finance and General Business Department at Missouri State University
Emeritus Professor of Finance at Rawls College of Business, Texas Tech University
Professor at Florida Agricultural and Mechanical University
Professor of Accounting and Finance at California State University, San Bernardino
Professor of Economics, Stern School of Business, New York University
Barnabas Professor of Finance at the University of Central Oklahoma
Associate Dean and Associate Professor of Marketing at DePaul University
Clinical Professor at New York University School of Professional Studies
Professor of Finance at the University of Houston-Victoria
Professor at Syracuse University College of Law
Associate Professor of Economics at St. Lawrence University
Adjunct Lecturer in Finance at the Eller College of Management
Professor of Accounting at LaGuardia Community College
Instructor in Marketing at Southeast Missouri State University
Executive Director of the Alpaugh Family Economics Center at the University of Cincinnati
Adjunct Professor of Finance, Knauss School of Business, University of San Diego
Chair and Associate Professor of Finance at the University at Buffalo
Professor of Business and Economics and Associate Provost at Juniata College
Associate Professor of Finance, School of Business at Stevens Institute of Technology
Instructor at the School of Health & Consumer Sciences at South Dakota State University
Associate Professor of Finance in the Stephens College of Business at the University of Montevallo
Course Lead and Graduate Faculty in HRM at Purdue University Global
Associate Professor of Marketing at Minnesota State University Moorhead
Associate Professor of Marketing at the University of Wyoming
Professor at Wichita State University
Dean of the College of Business at Hawai‘i Pacific University
Professor of Marketing, Albers School of Business and Economics at Seattle University
Executive in Residence - Finance, Sellinger School of Business at Loyola University Maryland
Director of the Student Money Management Center at the University of North Texas
Associate Professor at Boston College
Senior Lecturer of Finance at the University of Toledo
Associate Professor of Financial Economics at the Stetson-Hatcher School of Business at Mercer University
Chair and Professor of Finance at The College of New Jersey
CFA Charterholder and Finance Instructor at UC San Diego
Assistant Professor of Economics at Lubbock Christian University
Associate Professor of Finance Economics at Utah Valley University
Assistant Professor of Management at Campbell School of Business
Professor at California State University - Dominguez Hills
Professorial Lecturer at the Kogod School of Business at American University
Associate Professor of Economics at Bellarmine’s Rubel School of Business
Associate Professor of Finance at Simmons University
Clinical Assistant Professor of Marketing at UNC
Executive Vice Chancellor, Provost at the University of Missouri
Associate Professor at Texas A&M University – San Antonio
Assistant Professor of Marketing, University of North Carolina Wilmington
Associate Professor of Economics at Hampton University
Professor of Economics and Head of the Economics Department at Washington and Lee University
Assistant Professor of Marketing at New York University Stern School of Business
About the Author
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.