Before applying for a low-interest credit card, you should consider a few things. Cash back match means double the rewards at the end of your first year, 2% cash back category limited to $1,000 in quarterly spending. APR: The ongoing APR is 4.90% Variable (as of May 2021). You may be able to get a fixed interest rate on various types of loans, including student loans, mortgage loans, auto loans, and home equity loans or home equity lines of credit. For more information, see our full review of the Discover it Cash Back. 0% Intro APR on Balance Transfers for 12 Months, and then the ongoing APR of 8.25% Variable APR (as of May 2021). Intro APR Offer: 0% intro APR on purchases and balance transfers for 15 months; 19.74% - 29.74% variable APR after that; 3% fee on the amounts transferred within the first 15 months. When you pay your wireless bill with the card, youll have access to up to $600 in coverage per claim for stolen and damaged phones (subject to a $25 deductible). This information may be different than what you see when you visit a financial institution, service provider or specific products site. Balance transfers must be completed within four months of account opening. There is no annual fee, but you also wont earn rewards with this card. Here are a few ways you can avoid credit card interest: There isnt one particular figure that sets the standard for what is a good interest rate. All financial products, shopping products and services are presented without warranty. Low interest credit cards still charge interest and should still be used wisely to avoid damaging credit. Your monthly payment will be determined by your balance and the card issuers method of calculating minimum payments. Each card sets their own APR, or annual percentage rate. After the intro APR offer ends, a Variable APR that's currently 15.99% - 25.99% will apply. 7 Things to Know Before You Apply. Balances need to be transferred within 90 days of account opening to qualify for the interest-free financing, but this is a typical requirement. Minimum payments will still be required during any 0% introductory APR period. As of May 2021, the average annual percentage rate for cards that accrued interest was 16.30%, according to the Federal Reserve. The average credit card now charges 20.69%, a record. Since this method is compounding your interest charges, youll end up paying more than $200 in additional interest over the course of a year if you made zero payments towards that principal amount of your purchase. However, the card does include cell phone insurance. This all-around workhorse of a card notches 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, all for an annual fee of $0. Compare 0% APR credit cards. The Feds pause in Purchase APR (Annual Percentage Rate) refers to the amount of interest youll pay on something you bought with your credit card if you carry a balance from month to month. He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency. The financial institution did not provide the details. Discover will automatically match all the cash back you've earned at the end of your first year! You'll get a solid 0% introductory APR period, which can give you some breathing room while you pay down debt. Even the best low interest credit cards rarely actually offer a low interest rate compared to other types of loans, but their convenience may make them a reasonable choice in some situationsespecially the extreme short term. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers. We earn a commission from affiliate partners on many offers and links. Its also a no-annual-fee way to earn Membership Rewards, which are transferable to airline and hotel partners. ", 0% for the first 12 billing cycles on balance transfers processed within 90 days of account opening date. If you don't meet the qualification requirements, you can opt to join the American Consumer Council (ACC) for free with the promo code "Andrews. The Wells Fargo Active Cash offers an unlimited 2% cash rewards rate on purchases and charges no annual fee. However, there is no rewards program nor any welcome bonus, making this truly a "simple" card for those looking to hold a balance for a long period of time. Best Low-Interest Credit Cards in 2023 Our top pick for lowest interest rate Lake Michigan Credit Union Prime Platinum Our runner-up for lowest interest rate DCU If you have a current credit card with a 20% APR, your monthly payment would be $379.49 and youd pay $692.35 in interest. When evaluating offers, please review the financial institutions Terms and Conditions. However, that rate may also be 8.99%, 10.99% or 12.99%, depending on your creditworthiness. Liliana Hall is an editor for CNET Money covering banking, credit cards and mortgages. Get an automatic, one-time review for a higher credit limit when you pay on time, and spend $500 in your first six months. But once that interest-free window closes, the card's ongoing variable APR kicks in, and in most cases it'll be a steep double-digit increase. All Rights Reserved. Andrews Federal Credit Union offers additional cards that feature low ongoing interest rates. Credit cards tend to have variable interest rates, meaning they fluctuate based on the Federal Reserves prime rate. Another perk is the intro 0% APR period, which lasts for 15 months on purchases. MORE: Review of the Navy Federal Credit Union Platinum Credit Card. What is a good interest rate on a credit card? And despite its annual fee, the cards ongoing APR is comparatively lower than those of competing, First Progress Platinum Select Mastercard Secured Credit Card, 5 things to know about First Progress secured credit cards, Lake Michigan Credit Union Prime Platinum Card, Keep in mind, though, that youll need excellent credit (FICO scores of at least 720) to qualify for the card's lowest rate. Something went wrong. INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) worth up to $300 cash back! Automatically be considered for an APR reduction when you pay on time, and spend at least $1000 on your card by your next account anniversary. American Express Gold Card Best Premium Credit Card for Restaurants; Capital One SavorOne Earn 5% cash back in categories that rotate quarterly on up to $1,500 when enrolled, 5% on travel purchased throughRead More. A credit card's interest rate is irrelevant if you don't carry a balance from month to month, because you wont be charged any interest. Credit card interest rates have steadily increased over the last year as the Federal Reserve has repeatedly raised the federal funds rate to combat inflation. In addition to a low potential ongoing rate, this card also earns competitive cash-back rewards on everyday spending, which puts it on par with some of the. Many of the cards that offer low interest rates come from credit unions, which require membership. You can avoid accruing interest on your credit card by paying your balance in full and on time every month, but that can be easier said than done. But you can avoid landing yourself in unmanageable debt by thinking ahead and creating a payment plan or finding the right 0% introductory APR offer. that can help you avoid paying interest for a period of time. Your income and certain expenses may also weigh on a card issuers decision to offer you a lower or higher rate. You should also look beyond the interest-free period and see if theres value to you in the card when the promotional offer expires. The best way to lower your credit card interest rate is by improving your credit score. How much you owe is based on your cards balance and APR, which you can locate on your cards terms and conditions disclosure or via your online account. Pre-qualified offers are not binding. 3%. Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. APR: The ongoing APR is 4.90% Variable (as of May 2021). There's no minimum spending or maximum rewards. Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months, Earn a $200 bonus after spending $500 on purchases in your first 3 months from account opening, Earn 10,000 Membership Rewards Points after you spend $2,000 in qualifying purchases on the Card within your first 6 months of Card Membership, Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel. The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. Earning 5 miles per dollar on hotels and rental cars booked through Capital One Travel and 1.25 miles per dollar on every other purchase, the card gets additional value from the myriad of extra benefits standard on most Capital One cards. Most credit cards have variable interest rates. Being an employee of The Aerospace Corp. is one membership path, among other specific options. But once that interest-free window closes, the card's ongoing variable APR kicks in, and in most cases it'll be a steep double-digit increase. An intro APR is typically either a 0% or ultra-low APR offer that applies for a limited period of time. For more information, see our full review of the Blue Cash Everyday Card from American Express. Andrews Federal Simplicity Visa Credit Card. APR: The ongoing APR is 7.75% - 14.75% Variable APR (as of May 2021). Earn 2X points on groceries, gas, electronics, medical, household goods and telecommunications, 1X points on all other purchases, Earn 20,000 points when you spend $3,000 in the first 60 days from account opening, 0% for the first 12 billing cycles on balance transfers made within the first 90 days of account opening. The Choice Rewards World Mastercard from First Tech Federal Credit Union offers a rewards program geared toward everyday expenses, such as groceries and gas. LEARN: How do 0% APR Credit Cards Work? Start off strong with 0% Intro APR for 18 months from account opening on purchases and balance transfers. The daily rate of interest on your purchase is determined by dividing your cards APR by 365 to find the daily rate of interest and then multiplying that number by your balance. After the cards interest-free period ends, youll be charged the card's ongoing interest rate. Cash Back rewards do not expireas long as your account is open! Then 16.99% to 27.99% Standard Variable Purchase APR applies, based on credit worthiness. Intro APR Offer: 0% intro APR on purchases and balance transfers for 15 months, followed by a regular APR of 17.74% to 28.74% variable, Balance Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater. Best 0% APR Card for Cell Phone Insurance, Best 0% APR Card for Financing Large Purchases, Best 0% APR Card for Late Payment Forgiveness, Capital One VentureOne Rewards Credit Card. Earn 5% on Chase travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores and 1.5% on all otherRead More, A good overall spending card that allows you to hold a balance on new purchases with a low introductory APR, pay no annual fee, and still earn at least 1.5% cashback on all purchases. Most credit cards calculate interest using the average daily balance method, which means your interest is compounded and accumulates every day, based on your daily rate of interest. This card is a good option for those who want to build or rebuild credit. Those seeking a balance transfer card will likely appreciate that the Wells Fargo Reflect Card offers a generous introductory APR period on purchases and qualifying balance transfers. For example, the required payment may be a percentage of your balance or a flat amount. Find the best offers and apply today. Any remaining balance carried at the end of the period does begin to accrue interest at a regular APR. NerdWallet strives to keep its information accurate and up to date. Savers benefit from higher rates, but borrowers have faced bigger bills on credit cards, student loans and other forms of debt. CNET rates credit cards by comparing their offers to those of their categorical competitors. Since the Federal Reserve started raising interest rates, credit card APRs have soared. If factors like financial hardship make it necessary for you to carry a balance, there are credit cards usually offered by regional banks and. Sometimes carrying a balance is unavoidable, and you shouldnt feel bad if you find yourself in an emergency where you must put an unexpected charge on your credit card. What is a fixed-rate credit card? MORE: 5 things to know about NASA credit cards. Whether you want to pay less interest or earn more rewards, the right card's out there. Balance transfers made within 120 days qualify for the intro APR and a balance transfer fee of 5%, min $5 applies. Plus, earn unlimited 1% cash back on all other purchases automatically. However, it's a secured credit card, meaning you'll owe a deposit upfront and a high one at that ($500). Select Apply Now to learn more about the product features, terms and conditions, Rotating quarterly categories earn 5% rewards when activated, up to a combined quarterly $1,500 maximum, Travel rewards rate rivals some of the best premium travel cards, Generous rewards rate in several other categories, Travel bookings must be made through Chase Ultimate Rewards to earn 5% cash back. This method also avoids giving an unfair advantage to cards with large welcome bonuses. With a clean payment history and strong credit, it is possible to see a reduced interest rate applied to an existing card. Although specific score requirements will vary by issuer, youll typically need good or excellent credit (a score of at least 690 on the FICO scale) to qualify for cards that offer low or promotional interest rates. Find the best credit cards for balance transfers that match your needs. However, we only chose cards from financial institutions that allow anyone to join. The Titanium Rewards Visa Signature Cardfrom Andrews Federal Credit Union tops our list thanks to the low interest rates, strong rewards program and no foreign transaction fees all at no annual fee. You can calculate your own interest rates using our credit card payoff calculator. For more information, see our full review of the Citi Diamond Preferred Card. After the 0% promotional period ends, your regular APR goes up to 15.99% to 25.99% variable. A New Jersey native, she graduated with an M.A. AFCU Platinum Visa Cash Back Credit Card. He has decades of experience in digital and print media, including stints as a copy desk chief, a wire editor and a metro editor for the McClatchy newspaper chain. Read more about Select on. Unless you're taking advantage of an intro 0% APR offer, you'll rack up interest,-which can make it hard to pay off debt. The U.S. Bank Visa Platinum Card does not offer rewards on purchases. What True Low-Interest Credit Cards Are Available? Aerospace Federal Credit Union also offers the AFCU Platinum Visa Rewards Credit Card, and it, too, features relatively low interest compared with other cards on the market. This influences which products we write about and where and how the product appears on a page. What Higher Interest Rates Mean for Mortgages, Credit Cards and More. Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, Earn cash back on your next road trip with 2% cash back at Gas Stations and Restaurants on up to, Earn 5% on Chase travel purchased through Chase Ultimate Rewards, 3% on dining and drugstores and 1.5% on all other. This card is best for those who dont need the bells and whistles and just want to focus on cash back. The Wells Fargo Reflect Card has higher interest rates than other cards on this list, but they are still lower than many credit cards that offer a 0% introductory APR. Membership requirement options include working for a, of the Massachusetts-based credit union, being related to a current member or belonging to a, First Progress Platinum Prestige Mastercard Secured Credit Card, This is also a decent option for those with poor credit. Both this card and the other Discover card on our list tend to offer the lowest ongoing regular interest rates for those that need to carry a balance. So, you need to put down a minimum deposit of $200 upon approval. The less youre paying in interest, the more you can put towards paying off your debt. % APR 352 Reviews 14 Q&A Contact Accepted Credit Scores Excellent Credit Annual Fee $0 APR on Purchases 15.25% - 23.25% (V) Balance Transfer Fortunately, there are credit cards typically offered by regional banks and credit unions that offer lower rates and make carrying a balance less costly. However, this is a secured credit card. Low-interest credit cards can reduce the cost of carrying a balance on a credit card by offering interest rates below the average for most credit cards. Earn 5% cash back in categories that rotate quarterly on up to $1,500 when enrolled, 5% on travel purchased through, Earn 2X Membership Rewards points at US supermarkets on up to $6,000 per year (then 1X); Earn 2X points at, Earn 5X miles on hotels and rental cars booked through Capital One Travel, and earn unlimited 1.25X miles on every. MORE: Credit cards with long 0% intro APR periods. By clicking "Show filters" you can also filter options that best fit your credit score and financial needs. However, we may receive compensation when you click on links to products or services offered by our partners. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%.. After the introductory period ends, the variable APR kicks in at 18.99% to 29.99%.. A 3% fee applies to all balance transfers. Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Balance Transfer Fee: Either $5 or 5% of the amount of each transfer, whichever is greater. You need to be a member of the Digital Federal Credit Union to open this card, but anyone can join in one of several ways: friend or family member of a DCU member, live in select communities, work for select employers or make a one-time contribution (as low as $10) to a participating organization. Best credit cards for active-duty military, When you miss a payment or make a late payment, some cards will charge you a. for a period of time (typically six months). The Chase Slate Edge is a reasonable option for those looking to consolidate debt. An introductory APR is a promotional offer made by credit card companies to entice potential customers to sign up for a new card. The cards below may not have 0% intro APR offers, but they may prove more predictable for you. 17.99% - 29.99% variable APR thereafter. WebLow Interest Credit Cards ADVERTISER DISCLOSURE Capital One Quicksilver Cash Rewards Credit Card Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 WebSome of our selections for the best 0% and low interest credit cards can be applied for through NerdWallet, and some cannot. The Visa Premium card has no annual fee or balance transfer fee and comes with a fixed rate as low as 6.99%. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. A low-interest credit card can help reduce the cost of a revolving balance, but a card with an introductory 0% purchase APR will save you even more money if you need to carry a balance in the future. 5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 1.25X miles per dollar on every purchase, Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel, 0% intro APR on purchases and balance transfers for 15 months, 3% fee on the amounts transferred within the first 15 months. Many low-interest credit cards on this list also offer introductory 0% APR periods on purchases or balance transfers. Who's this for? You can also join simply by making a $5 deposit into a PenFed savings account. ; Earn 1% unlimited cash back on all other purchases automatically. 2023's best balance transfer cards for all credit levels, including bad credit, fair credit and good credit. Theres no minimum spending or maximum rewards. Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Theres no minimum spending or maximum rewards. The Petal 2 Cash Back, No Fees Visa Credit Card, issued by WebBank, is a rare credit-builder card that offers cash back, no annual fee, no late fees and no security deposit. Some cards offer 0% introductory APR periods on purchases and/or balance transfers, Many low-interest credit cards dont offer rewards or premium perks, You often need a good or excellent credit score to qualify. Information about the Titanium Rewards Visa Signature Card from Andrews Federal Credit Union has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication. Our Top Picks for the Best Credit Cards for Restaurants in 2023. Rewards totals incorporate the points earned from the welcome bonus. The Wells Fargo Reflect Card currently offers one of the longest 0% introductory APRs on the market with its 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. Discover will automatically match all the cash back youve earned at the end of your first year! Courtney Johnston is an editor for CNET Money, where she focuses on taxes, student loan, credit card, banking, mortgages and loan content. Weve selected some of the best low-interest credit cards below, many of which also have 0% introductory APR periods. After the 0% introductory period ends for both purchases and balance transfers, your APR jumps to 17.99% to 28.74% variable.. But if think you'll end up carrying a balance, here are some cards to consider that feature low ongoing interest rates. After the intro period, there's a reasonable variable APR of 13.25% - 18.00%. We believe everyone should be able to make financial decisions with confidence. Not all 0% APR cards are created equally. If you carry a balance, you can benefit from low interest charges compared to other cards that have high interest rates. But life happens and sometimes it's necessary to carry debt, which can get expensive. If you do some digging, however, you might be able to find a credit card with a rate thats locked in place and many of these fixed-rate cards carry interest rates that Who's this for? *All information about the BankAmericard credit card, Bank of America Travel Rewards credit card, and the Discover it Cash Back has been collected independently by CNET and has not been reviewed by the issuer. This card doesnt offer a promotional APR period for balance transfers or purchases. Low-interest credit cards provide one way to combat high-interest charges, but interest is avoidable if you pay off your balance in full each month. What Happens When Your 0% APR Period Ends? This card is a good option for those with poor credit (FICO scores of 629 or lower), and unlike a lot of cards in its class, the ongoing APR is fairly low. The ongoing APR is 4.90% Variable (as of May 2021). Discover will automatically match all the cash back earned at the end of the first year. Fixed-interest rates, which you see often on personal loans, dont fluctuate after you lock your rate in. Elements of your credit, like your payment history, credit utilization and the number and length of accounts you have help determine your credit score. ; 1% cash back on eligible purchases right away. A low-interest credit card can reduce the cost of carrying a balance on a credit card. The Platinum Mastercard from First Tech Federal Credit Union provides cardholders with a generous balance transfer offer: 0% intro APR for the first 12 billing cycles and no balance transfer fee. You can earn up to 1.5% cash back on eligible purchases after you make 12 on-time monthly payments. It's important to note the value of a point or mile varies from card to card and based on how you redeem them. And despite its annual fee, the cards ongoing APR is comparatively lower than those of competing secured credit cards. Also, you must be a member of the Digital Federal Credit Union to apply. Balances must be transferred within 90 days from account opening, $500 minimum security deposit, which is higher than average, Credit union membership required, which may cost a minimum of $10 if you dont qualify, No clear timeline to upgrade to an unsecured card, Good rewards program for everyday purchases, Balance must be transferred within 90 days of account opening date, 5 miles per dollar on hotel and rental cars booked through Capital One Travel, Miles never expire for the life of the account, No Global Entry or TSA PreCheck statement credit offerings, Long introductory APR period 21 months on purchases and qualifying balance transfers, Get up to $600 cell phone protection (subject to a $25 deductible), Access to My Wells Fargo Deals to earn cash back in the form of an account credit when shopping, dining.
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