Best Interest Rate Credit Card, Best APR Credit Cards
If you want to manage your regular spending using a credit card and frequently carry a small debt, a card with a single low rate rather than a 0% introductory rate may be a better choice. Some even give you discounts or freebies when you shop or travel.
During our study, we discovered the best low-rate credit card deals available. Just keep in mind that the terms of the deal may vary depending on your credit score and personal circumstances; using an eligibility checker will help you determine your chances of being approved for a card without leaving any evidence on your credit file. This article outlines the Best Interest Rate Credit Card.
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Why would you choose a credit card with a low interest rate?
According to Bank of England data, the average annual percentage rate (APR) paid on a credit card is roughly 21% (varying).
While many credit cards offer 0% interest on purchases and/or balance transfers, these interest-free periods are only available for a limited time. After the specified number of months, they revert to more ordinary interest rates.
This implies that unless you pay off any outstanding balances or transfer them to a different provider’s card (which will almost certainly incur a transfer charge), the amount of your debt will skyrocket.
Low-interest credit cards are one feasible option. While they charge interest, the rates are low and do not increase after the campaign ends.
This means you won’t have to juggle cards to keep prices down, and if you do rack up a tiny debt, it won’t be the end of the world in terms of interest charges.
What should you think about before applying for a credit card with a low APR?
Your credit score will play a significant role in whether or not your credit card application is approved. You may check your score for free using a variety of online services.
If your credit score isn’t up to par, you can raise it by doing the following:
* double-checking that you’re on the electoral roll
* rectifying any inaccuracies on your credit report
* spacing out applications by at least three months, ideally six
* keeping track of your bills and paying them on time.
When researching low APR credit cards, think about if a card that allows interest-free spending or balance transfers for a few months first may be more beneficial – this could be especially useful if you’re paying for a vacation or consolidating current debt, for example. However, keep in mind that there are 0% credit cards available.
Alternatively, when traveling abroad, you may wish to seek for a card that offers additional benefits such as cashback or fee-free transactions.
What are the benefits of a credit card with a low interest rate?
If you have a credit card balance and/or don’t pay off purchases within a set amount of time (usually 56 days), a low-rate credit card will ensure that you don’t pay too much interest. In reality, the APR on a low-rate credit card is usually less than half that of a conventional credit card.
The best card for a long intro period is the U.S. Bank Visa® Platinum Card.
This is why: This card is worth considering if you’re looking for cheap interest rates with a long introductory period.
On purchases and balance transfers done in the first 60 days after your account opens, the card offers a 0% intro APR for 20 billing cycles. A balance transfer fee of 3% of the transferred amount or $5, whichever is greater, is also charged. Your variable APR for purchases and balance transfers will increase to 14.49 percent – 24.49 percent after the intro period ends.
Unfortunately, once the promotional periods are over, this card does not offer any rewards to enhance value. It’s a terrific alternative, however, if you want to manage interest.
Best for a long intro period is the BankAmericard® credit card.
This is why: The introductory APR on this card may help you manage existing debt or prevent paying interest on new purchases.
On purchases and balance transfers made in the first 60 days after your account opens, you’ll earn a 0% APR for 18 billing cycles. After the intro period, your purchases and balance transfers will be subject to a variable APR of 12.99 percent to 22.99 percent. A balance transfer fee is also charged: either $10 or 3% of the transaction amount, whichever is greater.
The Wells Fargo ReflectSM Card is best for a long period of time.
This is why: If you satisfy certain requirements, you may be eligible for a 0% APR for 21 months.
This card offers a 0% intro APR on purchases and debt transfers for 18 months, but you can extend each offer by up to three months if you make on-time minimum payments during the intro offer and extension periods. Balance transfers must be made within 120 days of account opening, and a balance transfer fee of up to 5% (minimum $5) will be charged.
The APR for both purchases and balance transfers climbs to 12.99 percent – 24.99 percent when your intro periods are over.
The Citi Custom CashSM Card is the best for getting the most cash back.
This is why: You’ll get a low introductory APR and the chance to earn the most cash back in your top spending category.
Every month, the Citi Custom CashSM Card provides you 5% back on up to $500 spent in your top qualified spending area, whether it’s gas, restaurants, or another of the many options offered. All additional purchases, including those made after the monthly spending limit has been reached, get 1% back.
Plus, for the first four months after you create your account, you’ll earn a 0% intro APR for 15 months on purchases and balance transfers. A 5% balance transfer fee (minimum $5) is also charged. Your variable APR for purchases and balance transfers will increase to 13.99 percent – 23.99 percent after the intro period ends.