Low Interest Rate Credit Cards
Along with 0% introductory APR credit cards, there are low interest rate credit cards and low fixed APR credit card. These low interest rate credit cards usually offer a 0% introductory APR as well as a relatively low variable APR after the introductory period.
I wouldn’t say the APR is truly low, but low relative to typical rates seen on most credit cards. The APR is usually closer to 10% rather than the usual 20% to 30% you see with most credit cards.
Some of these cards also offer a fixed rate APR for the life a balance transfer, usually around 4.99%. While this is a good deal, and gives you presumably plenty of time to pay off the balance, I would recommend sticking with a 0% APR balance transfer that allows you to pay zero interest, usually for 12 billing cycles.
It’s tough to find a card that offers the best of all worlds. So it really depends on your particular situation when selecting a low interest rate credit card. If you think you’ll be able to pay off a balance transfer in 12 months, select the credit card with introductory 0% APR for 12 months. If you have a large balance that will take time to pay off, it might be best to get a credit card with a fixed low interest rate for the life of the balance transfer. And if you don’t have a balance, but want a credit card you’ll likely hang on to for a long period of time and pay off monthly, go for a low APR credit card that starts below 10% with the best rewards structure.
It’s important to note that the majority of credit card APR offers are either introductory or variable, meaning the interest rate will not stay fixed for the life of the card. The one exception is the fixed-APR on balance transfers that some low interest rate credit cards offer. So even if you see a low interest rate credit card, it usually means very little as it can change with little or no warning.
And remember if you’re ever late on any payments, the bank could raise your APR, or cut your fixed APR period short. So pay close attention to all your monthly liabilities, and make sure you are always current. Never pay your bill last minute, as it might not post on time.
On to a few credit cards I’ve seen lately that offer low interest rates:
Blue from American Express offers 4.99% fixed APR on balance transfers for the life of the balance, 0% APR for the first 15 months, no annual fee, and variable APR of 12.24%. This is probably the best deal I’ve seen in low interest rate credit cards online for a large balance you wish to pay off slowly. But it doesn’t seem to offer 0% APR on balance transfers, which to me is major negative.
There’s also the American Express Clear credit card, which offers fixed APR of 5.99% for the life of the balance with NO balance transfer fee, and no other fees for that matter.
Citi Cards offers 12 months introductory 0% APR and a variable APR of 11.24% which is relatively low, with no balance transfer fee. It’s a good deal if you’ve got a balance transfer you think you can manage to pay off in 12 months.
Finally Capital One has a few low interest credit cards starting at 6.81% which is super low, but they don’t offer 0% APR on balance transfers which somewhat kills a good deal on low APR.
The key is to find a card with as many of the benefits as possible, that best suits your situation. Look around and be choosy before deciding on a credit card.
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.