Low Interest Credit Cards |
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Customize your search for a Low Interest Rate Credit Card
Low interest credit cards are those that offer regular rates/APRs below 13%. In other words, low interest cards may not have 0% introductory rates on either purchases or balance transfers. As a result, the credit cards with low interest rates listed below are best for people who occasionally have a credit card balance remaining at the end of the month. While you might assume that everyone wants a low interest rate, regardless of their spending and payment habits, that shouldn’t be the case, as getting a low regular rate often means sacrificing in terms of rewards or the aforementioned 0% rates. Finally, combining a low interest credit card with a monthly budget plan could help you not only lower finance charges, but eventually eliminate them altogether.
Amalgamated Bank of Chicago Union Credit Card
Rates:
Annual Fee None
Rewards None
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First Progress Platinum Prestige MasterCard® Secured Credit Card
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Blue Cash Preferred® from American Express
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Barclaycard Ring Credit Card
Rates:
Annual Fee None
Rewards None
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Blue Cash Everyday® Card from American Express
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Arvest Bank Visa Platinum Credit Card
Rates:
Annual Fee None
Rewards None
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Regions Visa® Signature Preferred Credit Card
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IberiaBank Visa® Classic Credit Card
Rates:
Annual Fee None
Rewards None
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IberiaBank Visa® Platinum Rewards Credit Card
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Citi Simplicity® Card
Rates:
Annual Fee $0*
Rewards None
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Before you apply for a credit card we recommend that you review and verify the credit card terms and conditions on the credit card company's web site. Please let us know if you find any differences related to the Low Interest Credit Cards shown on this page.
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How important is getting a low interest rate? The importance of a low interest rate really depends on your payment habits. For example, if you always pay your bill in full, your credit card interest rate doesn’t matter at all, and by making a low interest credit card a priority, you are sacrificing the competitiveness of features that you could actually use, such as rewards. Still, some people who always pay their balances in full wind up in the “low interest credit card” category because they’re worried about the cost of finance charges, should they forget to pay their bills one month. The truth, however, is if that happens and you have a record of paying your balance in full, credit card companies will almost always refund any finance charges, making this a moot point. When it comes to people who consistently revolve credit card debt, low interest rate credit cards would help, but leveraging 0% credit cards would be even better since your full monthly payment will go toward the principal instead of being wasted on finance charges. Now, a low interest card is very important if you occasionally revolve a balance because your credit card company won’t give you the benefit of the doubt and a 0% credit card will not provide the long-term solution that you need.
Which credit card company is best for low interest credit cards? The primary differences between credit card companies revolve around customer service and card terms. Customer service is important and many consumers have favorite issuers based on reputation for good customer service or past experiences. However, customer service should only be used as a tiebreaker of sorts between cards with the same terms and should not be used as the primary deciding factor in your search for low interest credit card offers. You want the card with the lowest possible rate, after all, not one that forces you to pay more for more helpful representatives.
Are there any low fixed interest credit cards? No, low fixed interest credit cards aren’t available anymore. When the new credit card law (CARD Act) took effect in February 2010, credit card companies lost the ability to change interest rates whenever they want. With the exception of small business credit cards, which were excluded from the law, credit card companies can now only increase interest rates on existing balances when consumers become 60+ days delinquent. This necessitates that all credit cards have variable regular rates. In other words, since issuers can no longer adjust interest rates to reflect changes in the economic environment and the Prime Rate, they can no longer afford to offer low fixed interest credit cards. Of course, introductory interest rates are an obvious exception to this rule, since they have a set expiration date.
How high/low can credit card interest rates get? Obviously, interest rates can be as low as 0%. On the other hand, the fact that there is no national usury law and most credit card companies operate under charters that allow them to be federally regulated, rather than on the state level, means interest rates can go as high as consumers are willing to pay. The highest rate we’ve seen is 49.9% by First Premier Bank. Keep in mind that if you become at least 60 days delinquent, a penalty rate will take effect. Given that the average penalty interest rate is 28.5%, according to Card Hub’s data, this would certainly dampen the benefit of even the best low interest credit cards. It’s also important to note that there are usury laws at the state level, so if you are getting a credit card from a local bank, there might be an interest rate ceiling.
