Credit Cards With Low Interest

Low interest credit cards are attractive because of (wait for it) … their low interest rates! And we don’t just mean during the intro period, in which you’ll often enjoy 0% APR for anywhere from 3 to 18 months. Nope, we’re talking about once the dust settles and that intro program that got you to sign up in the first place expires - that’s when the true best low interest credit cards step to the forefront.

• So what do we look in for in credit cards with low interest?

Generally, a credit card with low interest is considered to have a 11.99%- 21.99% APR variable. If you have bad credit, consider a credit card with low interest to rebuild your credit score.

• And what's a variable?

Good question. Standard rates (or “ongoing” interest rates) are tied to the prime rate of a card. So when you see a “v” or “variable” next to a rate, that’s identifying that if the prime rate adjusts higher or lower, the interest rate will follow.

• Got it - So what is a prime rate?

The prime rate is an interest rate determined by the Federal Reserve and is used by banks as the base factor when determining a customer’s interest rate. Since the prime rate varies throughout the year, your variable interest rate can adjust up and down, too. If you’re curious as to whether or not your interest rate will change before receiving your credit card bill, you can keep track of the prime rate in the Money Rates section of the Wall Street Journal. (Check out a more detailed explanation to the question, ‘What is the prime rate?’ in our credit card FAQ section.)

• OK, so what should I look for when determining which low interest credit card is right for me?

We would recommend comparing a few things:

1.) Intro Period - Determine how long the a credit card intro period is, since this is generally the length of time in which you won’t be paying any interest. Obviously, the longer the intro period on your low interest credit card, the better. However, once you’ve determined the length of the low interest credit card, be sure to check out...

2.) The Non-Introductory APR - Because this is the interest rate you’ll be paying once your intro period expires, and is particularly worth noting if you plan on carrying a balance. The credit cards with low interest rates we recommend above are considered to have the lowest interest rates on the market, making it easy to compare post-introductory interest rates.

3.) Annual Fees - Many of our favorite low interest cards are credit cards with NO annual fees. Don’t sign up for an offer without determining whether or not you’ll be charged as a cardholder annually. We don’t necessarily believe that annual fees are all bad; we just recommend knowing all facets of your card before signing up for long term.

4.) Cash Back Rewards - Lastly, cash back programs are a dime a dozen these days. Choose a low interest credit card that offers the cash back rewards program that’s most valuable to you, that way you’re paying low interest AND receiving rewards that you can use towards freebies and discounts. We love win/win situations - this is one of them.

If you’re more interested in paying off your credit card debt with NO interest, check out our full list of 0% interest credit cards to compare the longest introduction periods on the market, and transfer your debt (albeit with a minimal transfer fee) to start paying back your debt without the hassle of interest.