Low-Interest Credit Cards

Compare the Best Low-Interest Credit Cards

You will once in a while find yourself carrying a balance between months. If you cannot pay your entire balance every month, having a lower steady rate could be an excellent option. This implies that you will pay less interest on the remaining balance. A low-interest rate credit card is a perfect option for massive one-off purchases that you intend to pay down over time.

While it may not be a good idea to get cash advances, most low-interest cards also charge a lower fee than standard cards.

Find the Right Low-Interest Credit Card for You

You’ll want to find a low-interest credit card if you often come short of your full monthly payments or have significant debt on your card. Ultimately, you may save a lot of money in interest charges. However, this enticing card reward shouldn’t fool you because it can cost you if you don’t settle your monthly balances in full.

Credit card interest compounds quickly, so it will take longer to clear your debt if you’re charged more. By transferring your existing balance to a low-interest card or using one right from the beginning, you may save a lot in interest costs and the time it takes to clear your debt.

The first step towards finding the right low-interest credit card for you is knowing your credit score. You’ll also want to take into consideration your spending habits. If you’re eyeing a low introductory offer, make sure you understand what interest rate takes effect after the promotional period ends.

Benefits of Low-Interest Credit Cards

Interest Charged is Low

You’d obviously be worried if you occasionally carry over a balance or make a massive purchase with your card. Fortunately, a low-interest credit card will let you enjoy a relatively low-interest rate on your card.

Budgeting is Easier

Most credit card issuers set a lifetime rate for low-interest credit cards. This makes it more straightforward for you to budget and meets your financial goals conveniently.

Lower Annual Fee

Low-interest credit cards often carry a lower annual fee compared to regular credit cards. In some cases, there’s no annual fee at all.

No Need to Switch Between Cards

Cardholders often have to switch between cards to take advantage of various APR perks. Luckily, a low-interest credit card lets you enjoy multiple 0% deals – all with a single card. You may also avoid balance transfer fees with one card.

Low-Interest Credit Card FAQs

What is a Low-Interest Credit Card?

A low-interest card is just what the name suggests; you enjoy a considerably lower interest rate. Although this card won’t offer perks like cash back or airline points, you can enjoy some form of a balance transfer, which gives you lucrative interest-free periods on your existing debt.

How Do Low-Interest Credit Cards Work?

Low-interest credit cards usually offer a low-interest rate, which helps you keep all monthly repayments quite affordable. A low-interest credit card may also give an introductory offer on balance transfers and purchases – ideally 0% APR.

What Rate Can I Get with Low-Interest Credit Cards?

There isn’t an industry standard for what would be considered a low-interest rate, but anything below the national average might be regarded as low. Your credit score, credit activity and credit history will affect the APR you are offered. A higher credit score could translate into lower interest rates, while a lower credit score will limit your choices. You can get an interest rate of lower than 10%.

Some cards will offer a 0% introductory APR, while others will offer the best of both worlds – a low-interest rate and no annual fee. This means you’ll enjoy a low-interest rate and won’t be charged for having your account open each year.

Can Anyone Get a Low-Interest Credit Card?

You can obviously get a low-interest credit card if you contact a card issuer. Besides going through the standard application process, card issuers will also scrutinize your credit score to determine your eligibility. A higher credit score will give you multiple card options to consider.

How Do I Compare Different Low-Interest Credit Cards?

If you’re thinking about registering for a low-interest credit card, you’ll need to start by comparing various cards. This will give you a better shot at getting the best card to match your needs. When comparing low-interest cards, you may want to start by considering whether a card that offers interest-free balance transfers or spending for a few months would be a great option.

You may also want to compare cards based on the rewards they offer, including cash back or fee-free transactions for international transactions. Other aspects you want to look into are the annual fees and the cost of cash withdrawals.