Best Low-Interest Credit Cards for 2024

What is a low interest rate credit card?

A low interest credit card is exactly what it sounds like, a credit card that comes with a low APR which can be either fixed or variable. This rate is usually 14% or less.

If you’re looking for something short-term, you may think about a credit card that offers a 0% APR introductory period, usually of 12-18 months, but if you are looking for something long-term you will want to obtain a low interest credit card.

How does a low interest credit card work?

As with any type of credit card, you are supplied with a certain amount of credit, and any balance you are unable to pay each month will accrue interest.

As interest is what makes credit cards so expensive for many people, being able to qualify for a low interest credit card will make borrowing much more affordable.

How can I lower my interest rate on a credit card?

You can lower your interest rate on a credit card by working to build up your credit score. Your credit score has a strong bearing on the APR that you will be offered by a credit card issuer, therefore, the higher your credit score is, the lower your interest rate will be.

In some cases, you can also lower an interest rate by calling your current credit card company to see if they’ll offer you a better rate.

What can a low interest credit card be used for?

A low interest credit card is a good option for someone with good to excellent credit, who plans to make a big purchase or wants a card they can affordably carry a balance on from time to time.

A low interest credit card can be used for any purchases you like, you just need to make sure that you don’t get too comfortable as a result of having a low interest rate. Just because you are lucky enough to qualify for a low APR doesn’t mean you shouldn’t aim to pay off as much of your balance as possible each month.

What are the pros and cons of low interest rate credit cards?

PROS

• save money on interest
• low annual fees
• can be used to pay off existing credit card debt
• makes paying for unexpected expenses much less stressful

CONS

• can have limited or no perks/rewards
• charges apply for balance transfers
• high interest rates for cash advances
• if not managed correctly, you can still find yourself in a lot of debt

What is considered a “low” interest rate on a credit card?

Due to the particularly high interest rates on credit cards, what can be considered a “low” interest rate may not seem that low at all. A low rate for most is 14% or less. Anything above this can no longer be considered a low interest credit card.

Is there a difference between low interest and 0% interest credit cards?

The main difference between a low interest credit card and a 0% interest credit card is that one is long-term and one is short-term.

With a 0% interest card, you won’t be charged any interest for a set period of time, typically for 6 - 18 months. After this introductory period, the interest rate will shoot up to a high interest rate, potentially more than you will be able to afford.

This type of credit card is a good option if you are looking to make a large purchase without interest, so long as you are able to pay back the full balance before the introductory period is over.

A low interest credit card, on the other hand, will always charge interest, but it will be considerably lower than other credit cards available. Since this low APR is effectively the “reward”, these credit cards come with little to no perks. A 0% APR credit card, however, will offer rewards to encourage you to keep using the card after the introductory period.

Tips for Getting a Low Interest Credit Card for Beginners

If you are looking to get a low interest credit card for the first time, there are a few things that you can do to increase your chances of approval:

• Work to build your credit score to at least a good level, or better yet, excellent level. Generally, the higher your credit score is, the better interest rates you will be able to qualify for. Take the time to find out what your credit score is and identify any errors or issues so that you can work to rectify them.
• Research all of your options. This will allow you to easily see what low interest credit cards are available to you, any particular benefits, and the interest rate of each one. Don’t forget to look at the high percentage as well as the low percentage if you are looking at credit cards with variable APRs.
• Lastly, apply for pre-qualified offers. This will give you the best idea of which low interest credit cards you will actually qualify for without affecting your credit score through a hard inquiry.

Can I negotiate a lower interest rate on a credit card?

There is no reason why you shouldn’t try and negotiate a lower interest rate on your credit cards. After all, it can’t hurt to try!

Give your credit card issuer a call and ask if you can get a lower interest rate. Worst case scenario, they say no, and you carry on before. Best case scenario, you end up with a lower interest rate or a better payment plan.

If you’ve mostly made full, on-time repayments and have been with the issuer for a number of months, you could very well be successful with negotiating a lower interest rate.

What credit score do I need in order to qualify for a low interest credit card?

In order to qualify for a low interest credit card, you typically need a good to excellent credit score, often 690 or more, although it will depend on the credit card issuer.

If you have a bad credit score, your options will be greatly limited and it is unlikely that you will be able to qualify for a low interest credit card, although there will be credit cards available to you with much higher interest.

What is the best credit card with the lowest interest rate?

If you are looking for a low interest credit card, there are several options available to you, but these credit cards stand out with a particularly desirable interest rate:

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Are low interest credit cards worth it?

A low interest credit card will be worth it if you find yourself carrying a balance from time to time, want a low interest card for emergencies, or plan to make a big purchase, and have a good to excellent credit score.

These types of credit cards are a great way to get that extra financing you need without plunging yourself into debt you can’t get out of.

Apply for a Low Interest Credit Card

If you are looking to apply for a low interest credit card, start by using our comparison tables to find the best credit card for you. With this type of funding you can borrow the money you need without the considerably high rates of most credit cards, helping you to borrow smarter.