Low Interest Credit Cards

A low interest credit card makes large balances a little more manageable. If you carry a balance from one month to another, a low APR credit card could be a good choice for you. Browse the best low interest offers from our partners and compare introductory rates, ongoing rates, annual fees, and rewards to find the right card for you.

A low interest credit card makes large balances a little more manageable. If you carry a balance from one month to another, a low APR credit card could be a good choice for you. Browse the best low interest offers from our partners and compare introductory rates, ongoing rates, annual fees, and rewards to find the right card for you.

Editor: Laura Mohammad | Writer: Garrett Yarbrough

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December 28, 2020

Best low interest credit cards of 2021:

Citi® Double Cash Card

Excellent

Credit Recommended (740-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

2%
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% intro for 18 months on Balance Transfers
Regular APR
13.99% - 23.99% (Variable)
Blue Cash Everyday® Card from American Express

Best Blue Cash Everyday Offer

See Rates & Fees, Terms Apply

Good to Excellent

Credit Recommended (670-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

3%
3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
2%
2% Cash Back at U.S. gas stations and at select U.S. department stores.
1%
1% Cash Back on other purchases.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
N/A
Regular APR
13.99% - 23.99% variable
Citi® Diamond Preferred® Card

Excellent

Credit Recommended (740-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% for 18 months on Balance Transfers
Regular APR
14.74% - 24.74% variable
Discover it® Miles
See Rates & Fees

Good to Excellent

Credit Recommended (670-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

1.5X
Earn unlimited 1.5x Miles for every dollar spent on all purchases - with no annual fee.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
10.99% for 14 months
Regular APR
11.99% - 22.99% variable
Citi Rewards+℠ Card

Excellent

Credit Recommended (740-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

2X
Earn 2X ThankYou® Points at Supermarkets and Gas Stations for the first $6,000 per year and then 1X Points thereafter.
1X
Earn 1X ThankYou® Points on All Other Purchases.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% intro for 15 months on Balance Transfers
Regular APR
13.49% - 23.49% (Variable)
Petal® 2

No Credit History

Apply Now

Rewards Rate

1.5%
Up to 1.5% cash back after making 12 on-time monthly payments.
1%
1% cash back on eligible purchases right away.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
N/A
Regular APR
12.99% - 26.99% variable
Upgrade Visa® Card with Cash Rewards
See Rates & Fees

Fair to Good

Credit Recommended (580-740)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

1.5%
Earn 1.5% unlimited cash back on card purchases every time you make a payment

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
N/A
Regular APR
8.99% - 29.99% APR
American Express Cash Magnet® Card
See Rates & Fees, Terms Apply

Good to Excellent

Credit Recommended (670-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

1.5%
Unlimited 1.5% Cash Back on your purchases.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
N/A
Regular APR
13.99% - 23.99% variable
Bank of America® Cash Rewards credit card

Good to Excellent

Credit Recommended (670-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

3%
Earn 3% cash back in the category of your choice (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases)
2%
Earn automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases)
1%
Earn unlimited 1% on all other purchases.

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
0% Intro APR for 12 billing cycles for any balance transfers made in the first 60 days
Regular APR
13.99% - 23.99% Variable APR on purchases and balance transfers
Petal® 1

No Credit History

Apply Now

Rewards Rate

This card doesn't offer cash back, miles, or points

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
N/A
Regular APR
19.99% - 29.49% variable
Blue Cash Preferred® Card from American Express

$250 Bonus Offer

See Rates & Fees, Terms Apply

Good to Excellent

Credit Recommended (670-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

6%
6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
6%
6% Cash Back on select U.S. streaming subscriptions
3%
3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
3%
3% Cash Back at U.S. gas stations
1%
1% Cash Back on other purchases

At A Glance

Annual Fee
$95
Balance Transfer Intro APR
N/A
Regular APR
13.99% - 23.99% variable
ABOC Platinum Rewards Mastercard®

Excellent

Credit Recommended (740-850)

hfyhpf120.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Apply Now

Rewards Rate

5X
Earn 5x rewards on up to $1,500 in combined purchases each quarter in popular categories such as dining, groceries, travel, and automotive
1X
Earn Points on Every Purchase! It’s simple: $1 = 1 Point

At A Glance

Annual Fee
$0
Balance Transfer Intro APR
N/A
Regular APR
12.90% - 22.90% variable

Editorial disclosure: All reviews are prepared by hfyhpf120.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank's website for the most current information.

All information about the Wells Fargo Propel American Express® card, Wells Fargo Cash Wise Visa® card, Wells Fargo Platinum card, The Amex EveryDay® Credit Card from American Express, and Citi Simplicity® Card have been collected independently by hfyhpf120.com and has not been reviewed by the issuer.


Comparing Low Interest Credit Card Offers

Although it’s usually best to pay off the balance each month, sometimes that isn’t possible. That’s where low interest cards come in. If you want to look at how interest rates work on credit cards, look no further. We crunched the numbers on more than 800 credit cards to determine the best credit cards with low interest rates, and also included information on how to best utilize these cards. Whether you want to understand the mechanics of our best low interest cards or the difference between interest and APR, we can help. Here, we look at:

  • J.D. Power’s 2020 customer satisfaction survey.

    Citi® Diamond Preferred® Card

    Why this card is the best low interest credit card for balance transfers

    It offers one of the longest promotional APR periods on balance transfers currently available: You’ll get a whopping 18 months to tackle your transferred balance without paying interest (the card’s APR is 14.74%-24.74% variable after that). Plus, the card’s low-end ongoing APR is lower than the average credit card APR.

    Pros

    In addition to a long intro APR period on balance transfers, the card offers a solid introductory rate on new purchases: The APR is 0% for the first 18 months and 14.74%-24.74% variable thereafter. Having the option to pay off new purchases over time without drowning in interest could come in handy if you need to cover unexpected expenses.

    Cons

    The card charges a balance transfer fee of 3% (or $5, whichever is higher). As our This sudden rate change could be beneficial to those who have an outstanding credit card balance (but you may need to ask for a lower rate) or are interested in a card with a lower interest rate.

    Average credit card interest rates

    • Low interest
    • 12.83%
    • National average
    • 16.03%
    • Bad credit
    • 24.43%
    • Source: This sudden rate change could be beneficial to those who have an outstanding credit card balance (but you may need to ask for a lower rate) or are interested in a card with a lower interest rate.

      Average credit card interest rates…

      • Low interest
      • 12.77%
      • National average
      • 15.97%
      • Bad credit
      • 24.43%

      Source: ABA Q1 2020 Credit Card Market Monitor

      Since you won’t accumulate any interest by paying your balance in full each month or not using your card at all, having a credit card with low interest is only important for revolvers, who make up the largest segment of cardholders.

      How does credit card interest work?

      You probably know that if you carry a balance on your credit card, at some point you will pay interest. Here, we explain how that works.

      Your interest is expressed in APR, or annual percentage rate. According to Discover, you divide that rate by 365 (days of the year) to calculate your daily rate. So, if your card has an APR of 15%, it will have a daily rate of .041096%. So, with a balance of $1,000 at 15%, you add the interest, and the new balance the next day is $1,000.41. This continues, with compounding, until the end of the month when your balance is $1,013.

      You might get a grace period of roughly a month to pay your bill off and avoid interest, and of course you can take out a 0% intro APR card as well to avoid paying interest. But the bottom line is that if you don’t pay off your balance, you can eventually get slammed with interest, and your monthly charges can drag on for years if you only pay the minimum.

      To calculate interest on a credit card, use our handy-dandy U.S. household credit card debt decreased by $76 billion in the second quarter of 2020 when compared to the previous period, according to the New York Fed, while seriously delinquent credit card accounts (more than 90 days past due) leveled off to 5.05%.

      How can I avoid paying interest on a credit card?

      To avoid that debt, the best thing you can do is to pay in full each month. Also, avoid putting charges on your card that you can’t pay in full by the due date. Want that big-screen TV but don’t have the cash? Start setting aside the money rather than paying with your card without a plan.

      If you’re already stuck in debt, you can avoid paying some interest by paying more than the minimum amount. Remember that $3,000 at a 16.5% rate, in which you end up with more than $2,000 in interest charges because you paid the minimum? Well, if you paid $200 a month, those interest charges would drop to $383.

      If you pay more than the minimum…

      RateMonthly paymentMonths to pay offAmount owedInterest to pay off
      16.5%3% or $25, whichever is greater124$3,000$2,122
      16.5%$20017$3,000$383

      Another way to save money on interest is to transfer an existing balance to a balance transfer card or a low interest card.

      With a lower interest rate, and even better, 0% intro APR, you can pay off that card debt at a faster rate. Also, you save hundreds of dollars in interest charges.

      Can you ask for a lower credit card interest rate?

      There are several ways to lower your interest rate, the most direct being to simply ask. In most cases, you can call your card provider and work with them to negotiate a better rate. It’s important to stay mindful of what your interest rate is; that way there’s no surprises if you ever carry a balance.

      Why you should avoid keeping a balance on your credit card

      In addition to interest incurred when carrying a balance, there’s another reason why you should avoid card debt. The second most important factor of your credit score is your credit utilization ratio, or how much you owe on your cards compared to how much credit you have available. So, if you owe $500 and you have $5,000 in available credit, then your utilization ratio is 10%, which is a good ratio.

      Figuring out your credit utilization ratio

      CardCredit availableAmount owedCredit utilization ratio
      Citi® Double Cash Card$2,000$200$200/$2,000=10%
      American Express Cash Magnet® Card$2,000$300$300/$2,000=15%
      Discover it Cash Back$1,000$0$0/$1,000=0%
      TOTAL$5,000$500$500/$5,000=10%

      As you can see, there is a ratio for each card and a total ratio for all cards combined. Both matter. The industry standard is to keep the ratios under 30%, but it’s best to keep them as close to 0% as possible, partly to avoid paying interest and partly to keep your credit healthy.

      Additional Resources

      With our picks for the best low interest credit cards on this page, we cover a unique selection of credit cards with low regular interest rates. We have also curated and compiled a list of the best credit cards with long 0% APR offers and for balance transfers specifically — check them out:

      You can read some individual reviews for low interest credit cards at our reviews section. You can use these to get a better idea of how products compare to one another and decide which offer is the best for your needs.