Rewards, No Annual Fee, Daily use
Apply now
On Capital One‘s site

Best Low Interest Credit Cards of November 2022

Although we generally advise against carrying a balance on your credit card, it can still happen to anyone. Whether you’re someone who often carries a balance month-to-month or wants to play safe in case an unexpected expense arises – you should look into the credit card’s APR before you apply for it. Some credit cards offer 0% APR introductory periods that usually last from 6 to 20 months. However, instead of applying for a new card with an intro offer every few months, it’s more convenient to choose one with a low ongoing APR. Pay attention to the range of the variable APR, as only those with good to excellent credit will get the lowest APR rates. Look through our list of best credit cards for low interest to find the right one for you. Some of them offer rewards too, but we recommend prioritizing low interest over earning rewards.

By Hanna Volkava
Updated November 30, 2022

Best Credit Cards for Low Interest in November 2022

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Capital One VentureOne Rewards Credit Card best for Rewards, No Annual Fee, Daily use

VentureOne Rewards Capital One
Annual fee:
$0
Regular APR:
17.99% - 27.99% Variable
Our Rating:
4.72
scorer
Credit score
Good to Excellent (670-799)
  • Rewards Rate:
    • 5x Miles per dollar on hotels and rental cars booked through Capital One Travel.
    • 1.25x Miles per dollar on all purchases.
  • Intro Offer:
    • 20,000x Bonus miles once you spend $500 on purchases within the first 3 months from account opening.
  • Purchase Intro APR:
    0% Introductory APR for the first 15 months that your account is open, 17.99% - 27.99% variable APR after that
  • Balance Transfer APR:
    17.99% - 27.99% Variable
  • Issuer name:
    Capital One
  • Details:

    The Capital One VentureOne Credit Card offers 1.25x miles per dollar on every purchase, plus 5x miles per dollar on hotels and rental cars booked through Capital One Travel.

    Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening. The card also offers a 0% intro on purchases and balance transfers for 15 months, 17.99% - 27.99% variable APR applies after that.

    The Card doesn't charge an annual fee. The card has a balance transfer fee of 3% (none for balances transferred at the Transfer APR).

  • Pros:
    • No annual fee
    • No Foreign Transaction Fee
    • 15-month 0% APR intro offer
    • Bonus for New Members
  • Cons:
    • Lower Reward Rates
    • High APR
  • Benefits:
    • 20,000 bonus miles (once you spend $500 on purchases within the first 3 months from account opening);
    • 5x miles on hotels and car rentals;
    • 1.25x miles per dollar on every purchase;
    • $0 Fraud Liability;
    • The Eno assistant;
    • Auto Rental Collision Damage Waiver;
    • Travel Accident Insurance;
    • Transfer Your Miles;
    • Capital One Shopping;
    • Shop With Your Rewards;
    • Emergency Card Replacement;
    • 24/7 Customer Service;
    • Premier Culinary Experiences;
    • Must-See Music Events;
    • Big-time Sports Events.
View all VentureOne Rewards details
Apply now
On Capital One‘s site
Card detail

Capital One Quicksilver Cash Rewards Credit Card best for Cash Back, No Annual Fee, Daily use

Quicksilver Capital One
Annual fee:
$0
Regular APR:
17.99% - 27.99% Variable
Our Rating:
4.58
scorer
Credit score
Good to Excellent (670-799)
  • Rewards Rate:
    • 1.5% Cash Back on every purchase.
  • Intro Offer:
    • $200 Cash Bonus once you spend $500 on purchases within 3 months from account opening.
  • Purchase Intro APR:
    0% Introductory APR for the first 15 months that your account is open, 17.99% - 27.99% variable APR after that
  • Balance Transfer APR:
    17.99% - 27.99% Variable
  • Issuer name:
    Capital One
  • Details:

    The Quicksilver Credit Card from Capital One® offers 1.5% Cash Back on all purchases with a $0 annual fee. It also offers a 0% intro on purchases and balance transfers for 15 months, followed by the standard APR of 17.99% - 27.99% (Variable). The card has a balance transfer fee of 3% (none for balances transferred at the Transfer APR).

    New cardholders will have the opportunity to earn a bonus: One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.

  • Pros:
    • No minimum redemption is required
    • No annual fee
    • No foreign transaction fees
    • Intro APR period on Purchases
    • Generous sign-up bonus
  • Cons:
    • No bonus rewards categories
    • Other cards offer longer intro APR periods and/or lower APR
    • You need a good credit score to get this card
  • Benefits:
    • $200 Cash Bonus (once you spend $500 on purchases within 3 months from account opening);
    • Unlimited 1.5% Cash Back on every purchase;
    • $0 Fraud Liability;
    • Complimentary Concierge Service;
    • Travel Accident Insurance;
    • 24-hour Travel Assistance Services;
    • Capital One Shopping;
    • Shop With Your Rewards.
View all Quicksilver details
Apply now
On Capital One‘s site
Card detail

Upgrade Cash Rewards Visa® best for Good credit score

Upgrade Cash Rewards Visa®
Annual fee:
$0
Regular APR:
14.99% - 29.99% Regular
Our Rating:
4.35
scorer
Credit score
Fair to Excellent (580-799)
  • Rewards Rate:
    • 1.5% Cash Back on payments.
  • Intro Offer:
    • $200 Bonus when you open a Rewards Checking account and make 3 debit card transactions. *
  • Details:

    The Upgrade Cash Rewards Visa® offers 1.5% Cash Back on payments.

    Earn a $200 welcome bonus when you open a Rewards Checking account and make 3 debit card transactions (within 60 days of your Upgrade Card account opening).

    The card's APR: 14.99% - 29.99% (Regular APR).

    Read full review

  • Pros:
    • No Foreign Transaction Fee
    • No Annual fee
    • No extra fees
  • Cons:
    • No Intro APR reriod
  • Benefits:
    • $200 bonus;
    • 1.5% Cash Back;
    • Сontactless card technology.

    *To qualify for the $200 welcome bonus, you must open and fund a new Rewards Checking account and make 3 debit card transactions within 60 days of your Upgrade Card account opening. The bonus will be applied as a one-time credit to your account and will not otherwise reduce the amount of your regular monthly payments. The bonus credit will be posted to your Upgrade Card as a rewards credit within 1 - 2 billing periods following the third debit card transaction on your Rewards Checking account. Your Upgrade Card must be in good standing to receive a bonus.

View all Upgrade Cash Rewards Visa® details
Apply now
On Upgrade‘s website
Card detail
Upgrade Triple Cash Rewards Visa® Upgrade
Annual fee:
$0
Regular APR:
14.99% - 29.99% Regular
Our Rating:
3.53
scorer
Credit score
Fair to Excellent (580-799)
  • Rewards Rate:
    • 3% Cash Back on Home, Auto and Health categories.
    • 1% Cash Back on everything else.
  • Intro Offer:
    • $200 Bonus when you open a Rewards Checking account and make 3 debit card transactions (within 60 days of your Upgrade Card account opening). *
  • Details:

    The Upgrade Triple Cash Rewards Visa® Credit Card offers 3% Cash Back on home, auto and health purchase and 1% Cash Back on everything else.

    Earn a $200 welcome bonus when you open a Rewards Checking account and make 3 debit card transactions (within 60 days of your Upgrade Card account opening).

    The card's APR: 14.99% - 29.99% (Regular APR).

    Apply online and get a credit line from $500 to $25,000 with your Card.

    Read full review

  • Pros:
    • Every Purchase Earns You Cash Back
    • Increased Cash Back for Three Categories
    • Forget About Fees
    • No Limits Abroad
  • Cons:
    • You Can’t Withdraw Cash
    • Cash Back Doesn’t Satisfy Your Monthly Payments
  • Benefits:
    • $200 bonus;
    • 3% Cash Back on home, auto and health purchase;
    • 1% Cash Back on everything else;
    • Сontactless card technology.

    *To qualify for the $200 welcome bonus, you must open and fund a new Rewards Checking account and make 3 debit card transactions within 60 days of your Upgrade Card account opening. The bonus will be applied as a one-time credit to your account and will not otherwise reduce the amount of your regular monthly payments. The bonus credit will be posted to your Upgrade Card as a rewards credit within 1 - 2 billing periods following the third debit card transaction on your Rewards Checking account. Your Upgrade Card must be in good standing to receive a bonus.

View all Upgrade Triple Cash Rewards Visa® details
Apply now
On Upgrade‘s website
Card detail
Merit Platinum
Annual fee:
See website for details*
Regular APR:
None
Our Rating:
3.8
scorer
Credit score
No Credit History to Poor (0-579)
    • Details:

      The Merit Platinum Card is an online shopping card for people with bad credit or no credit.

      The card provides you with a merchandise credit line of $750*.

      Read full review

    • Pros:
      • Fast and Easy Application
    • Cons:
      • Valid at the Horizon Outlet store
    • Benefits:
      • $750 Merchandise Credit Line*;
      • No Employment or Credit Check.
    View all Merit Platinum details
    Apply now
    On Meritplatinum‘s website
    Card detail

    WebBank Petal® 2 “Cash Back, No Fees” Visa® best for Beginner, No history

    Petal® 2 “Cash Back, No Fees” Visa® WebBank
    Annual fee:
    $0
    Regular APR:
    15.99% - 29.99% Variable
    Our Rating:
    3.8
    scorer
    Credit score
    No Credit History to Excellent (0-799)
    • Rewards Rate:
      • 1% - 1.5%:
      • Cash Back after making 12 on-time monthly payments.
      • 2% - 10%:
      • Cash Back from select merchants.
    • Issuer name:
      WebBank
    • Details:

      The Petal 2 Card has no fees of any kind and is designed to help you build credit.

      The credit limit is from $500 - $10,000.

      Grow your credit score with responsible spending and on-time payments.

      Get 1% cash back right away. Earn up to 1.5% when you pay on time. Plus 2% - 10% bonus cash back at select merchants.

      Freeze your card at any time to protect your account. And rest easy knowing your data is safe and encrypted.

      Read full review

    • Pros:
      • No annual fee
      • No returned payment fee
      • No foreign transaction fee
      • You can apply even if you have no credit history
      • No late fees
    • Cons:
      • No signup bonus
      • Cash advances are not permitted
      • Those who filed for bankruptcy may be rejected
      • Balance transfers are not allowed
      • No intro APR offer
    • Benefits:
      • No foreign transaction fee;
      • Petal 2 reports to all 3 major credit bureaus;
      • Qualify with average credit.
    View all Petal® 2 “Cash Back, No Fees” Visa® details
    Apply now
    On WebBank‘s site
    Card detail

    Applied Bank® Secured Visa® Gold Preferred® Credit Card best for 18 year old

    Gold Preferred® Secured Visa® Applied Bank
    Annual fee:
    $48 annually
    Regular APR:
    9.99% Fixed
    Our Rating:
    4.23
    scorer
    Credit score
    No Credit History to Poor (0-579)
      • Issuer name:
        Applied Bank®
      • Details:

        The Applied Bank® Secured Visa® features a fixed-rate 9.99% APR on purchases.

        The Applied Bank® Gold Preferred® Secured Visa® Card charges several fees in addition to the $48 annual fee. Fees include an up to $38 late payment fee, an up to $38 returned payment fee, a $30 stop payment fee, a $12.95 fee for each optional payment, a $30 fee for additional or replacement cards a $50 reinstatement fee, and a 3% foreign transaction fee.

        Read full review

      • Pros:
        • Extremely low regular APR
        • No penalty rate
        • Guaranteed approval
        • Increase your credit limit
      • Cons:
        • No rewards system
        • A lot of fees
        • Can’t upgrade to an unsecured credit card
        • No grace period
      • Benefits:
        • Reports to All Three National Credit Bureaus;
        • Zero Fraud Liability;
        • Refundable Security Deposit;
        • Global acceptance;
        • Emergency card replacement and cash disbursement.
      View all Secured Visa® Gold Preferred® Credit Card details
      Apply now
      On Applied Bank®‘s site
      Card detail
      First Progress Platinum Prestige Mastercard® Secured Synovus Bank
      Annual fee:
      $49 annually
      Regular APR:
      13.74% Variable
      Our Rating:
      3.8
      scorer
      Credit score
      No Credit History to Fair (0-669)
        • Issuer name:
          Synovus Bank
        • Details:

          The First Progress Platinum Prestige Mastercard® Secured Credit Card is a secured credit card for people with a limited credit history.

          The First Progress Platinum Prestige Mastercard® doesn’t earn a welcome bonus.

          The First Progress Platinum Prestige Mastercard® comes with an annual fee of $49. The card's APR: 13.74% (Variable for purchases), 22.74% (Variable for cash advances).

          First Progress reports to all three major credit agencies, so even if you have bad credit, you’ll be able to improve on your credit standing provided you use your card responsibly.

          Read full review

        • Pros:
          • Low APR for Purchases
          • No Minimum Credit Score Required
          • Reports to Three Major Credit Bureaus
          • Suitable Range of Credit Limit
        • Cons:
          • High Annual Fee
          • High Transaction Fees on Cash Advance
          • High Penalty Fees
          • No Bonuses or Rewards
          • Foreign Transaction Fees
          • Unavailability of Card for Certain Geographies in the US
        • Benefits:
          • Accepted Nationwide;
          • No Minimum Credit Score;
          • No Credit History Required.
        View all First Progress Platinum Prestige Mastercard® Secured details
        Apply now
        On First Progress’s site
        Card detail
        Unique Platinum
        Annual fee:
        See website for details*
        Regular APR:
        0.00% Regular
        Our Rating:
        3.1
        scorer
        Credit score
        No Credit History to Poor (0-579)
        • Rewards Rate:
          • $25 With the Unique Platinum Card you’ll also get $25 in Reward Dollars every month that you can use to save in your choice of over 500,000 ways.
        • Details:

          The Unique Platinum Card is a good option for people with bad credit or no credit.

          With the Unique Platinum Card you’ll also get $25 in Reward Dollars every month.

          The Unique Platinum Card has an annual fee of $269.35 (in the first year), $239.4 (thereafter).

          The card is valid only at My Unique Outlet.

          Read full review

        • Pros:
          • Unsecured credit line
          • Instant approval
        • Cons:
          • Valid only at My Unique Outlet
          • Minimum monthly payment
        • Benefits:
          • $1000 Credit Line;
          • $25 in Reward Dollars;
          • No Monthly Fee.
        View all Unique Platinum details
        Apply now
        On Uniquecardservices‘s website
        Card detail
        Accepted Platinum
        Annual fee:
        See website for details*
        Regular APR:
        None
        Our Rating:
        4
        scorer
        Credit score
        No Credit History to Poor (0-579)
        • Purchase Intro APR:
          0% Introductory APR
        • Details:

          The Accepted Platinum Card is a special card for online shopping. With the Card you’ll get $25 in Reward Dollars every month.

          The Card offers fast, trackable and reliable roadside service.

          The Initial cost of membership in the Unique Card Services shopping club is $29.95. The continuing cost is $19.95 per months. The card's NSF check fee is $30 (fee for returned checks or debits, second NSF).

          The card's minimum monthly payment is 15% (of the account balance owed) or $25.00.

          The Accepted Platinum Card has no penalties for prepayment.

          Read full review

        • Pros:
          • No APR charged
        • Cons:
          • No rewards
          • Limited use
        • Benefits:
          • $1,000.00 Credit Line;
          • No Credit Checks;
          • 24/7 Roadside Assistance;
          • $14.95 Monthly Payments.
        View all Accepted Platinum details
        Apply now
        On Acceptedplatinum‘s website
        Card detail
        First Progress Platinum Select Mastercard® Secured Synovus Bank
        Annual fee:
        $39 annually
        Regular APR:
        17.74% Variable
        Our Rating:
        3.5
        scorer
        Credit score
        No Credit History to Fair (0-669)
          • Issuer name:
            Synovus Bank
          • Details:

            The First Progress Platinum Select MasterCard® Secured is designed to help cardholders build credit with no credit check or minimum credit score required to apply.

            The First Progress Platinum Select MasterCard® Secured doesn’t come with any welcome offers, sign-up bonuses or reward rates.

            The card's APR: 17.74% (Variable for Purchases), 23.74% (Variable for Cash Advances).

            The First Progress Platinum Select MasterCard® has an annual fee of $39. Plus, the card has a foreign transaction fee of 3%.

            Read full review

          • Pros:
            • No credit history required
            • No Minimum Credit Score needed
            • Low Annual Percentage Rates
          • Cons:
            • Annual Fee
            • Foreign Transaction Fee
          • Benefits:
            • Accepted Nationwide;
            • No Minimum Credit Score;
            • No Credit History Required.
          View all First Progress Platinum Select Mastercard® Secured details
          Apply now
          On First Progress’s site
          Card detail
          Capital One® Spark® Cash Select
          Annual fee:
          $0
          Regular APR:
          16.24% - 22.24% Variable
          Our Rating:
          5
          scorer
          Credit score
          Excellent (740-799)
          • Rewards Rate:
            • 5% Cash Back on hotels and rental cars booked through Capital One Travel.
            • 1.5% Cash Back for your business on every purchase, everywhere, no limits or category restrictions.
          • Intro Offer:
            • $500 Cash bonus once you spend $4,500 on purchases within the first 3 months from account opening.
          • Balance Transfer APR:
            16.24% - 22.24% Variable
          • Issuer name:
            Capital One
          • Details:

            The Capital One® Spark® Cash Select Credit Card earns a $500 cash bonus once you spend $4,500 on purchases within the first 3 months from account opening. The Card offers 5% Cash Back on hotels and rental cars booked through Capital One Travel, 1.5% Cash Back for your business on every purchase.

            The Spark® Cash Select Card doesn't charge an annual fee.

            The card's APR is 16.24% - 22.24%.

          • Pros:
            • No Annual Fee
            • No Foreign Transaction Fee
          • Cons:
            • No Intro APR period
          • Benefits:
            • $500 cash bonus (once you spend $4,500 on purchases within the first 3 months from account opening);
            • 5% Cash Back on hotels and rental cars booked through Capital One Travel;
            • 1.5% Cash Back for your business on every purchase;
            • $0 Fraud Liability;
            • Free Employee Cards;
            • Roadside Assistance.
          View all Spark® Cash Select details
          Apply now
          On Capital One‘s site
          Card detail

          Blue Cash Everyday® Card from American Express best for Cash Back, Gas, 0 APR, No Annual Fee, Families, Shopping, Groceries

          Blue Cash Everyday® American Express
          Annual fee:
          $0
          Regular APR:
          17.74% - 28.74% Variable
          Our Rating:
          4.24
          scorer
          Credit score
          Good to Excellent (670-799)
          • Rewards Rate:
            • 3% Cash Back on groceries at U.S. supermarkets, on up to $6,000 per year in purchases (then 1%).
            • 3% Cash Back on U.S. online retail purchases on up to $6,000 per year in purchases (then 1%).
            • 2% Cash Back on gas at U.S. gas stations on up to $6,000 per year in purchases (then 1%).
            • 1% Cash Back on other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
          • Intro Offer:
            • $150 Earn up to $150 back when you shop with PayPal merchants by earning 20% back in statement credits on your purchases, plus $100 back in statement credits after spending $2,000, all within the first 6 months.
          • Purchase Intro APR:
            0% Introductory APR for the first 15 months from the date of account opening
          • Balance Transfer APR:
            17.74% - 28.74% Variable
          • Issuer name:
            American Express®
          • Details:

            The Blue Cash Everyday® Card from American Express offers up to $150 back when you shop with PayPal merchants by earning 20% back in statement credits on your purchases, plus $100 back in statement credits after spending $2,000, all within the first 6 months. Plus, earn 3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 3% Cash Back on U.S. online retail purchases on up to $6,000 per year in purchases (then 1%), 2% Cash Back at U.S. gas stations and 1% Cash Back on other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.

            The Blue Cash Everyday® Card from American Express offers an introductory 0% APR on purchases and balance transfers for 15 months, followed by a variable APR of 17.74% to 28.74%.

            Your Card gives you the option to carry a balance with interest or pay in full each month. So, whether you're managing your monthly expenses or making a large purchase, you can have the payment flexibility you need while continuing to earn rewards.

            When you use your Card to reserve and pay for the Entire Rental and decline the collision damage waiver at the rental Company counter, you can be covered for Damage to or Theft of a Rental Vehicle in a Covered Territory.

            Stay in the know with exclusive access to ticket presales and Card Member-only events in a city near you. Check out Broadway shows and concert tours, family and sporting events, and more.

          • Pros:
            • No Annual Fee
            • Provides Gas and Grocery Rewards
            • 0% Intro Offer
            • Welcome Bonus
          • Cons:
            • Limited Redemption
            • Bonus Cash Backs Capped
            • Card not Ideal for Travelling Abroad
          • Benefits:
            • 3% Сash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%);
            • 3% Cash Back on U.S. online retail purchases on up to $6,000 per year in purchases (then 1%);
            • 2% Cash Back at U.S. gas stations on up to $6,000 per year in purchases (then 1%);
            • 1% Cash Back on all other purchases;
            • Up to $150 back when you shop with PayPal merchants by earning 20% back in statement credits on your purchases;
            • $100 back in statement credits after spending $2,000 within the first 6 months;
            • Car Rental Loss and Damage Insurance;
            • 24/7 Global Assist® Hotline;
            • American Express Experiences;
            • Fraud Protection;
            • Pay It Plan It;
            • Additional Cards;
            • Terms Apply.
          Card detail

          U.S. Bank Visa® Platinum Card best for 0 APR, No Annual Fee

          U.S. Bank Visa® Platinum
          Annual fee:
          $0
          Regular APR:
          18.24% - 28.24% Variable
          Our Rating:
          3.65
          scorer
          Credit score
          Good to Excellent (670-799)
          • Purchase Intro APR:
            0% Introductory APR for the first 18 billing cycles
          • Balance Transfer APR:
            18.24% - 28.24% Variable
          • Issuer name:
            US bank
          • Details:

            The U.S. Bank Visa® Platinum Credit Card is a good 0% intro APR card.

            The Visa® Platinum Card doesn't charge an annual fee.

            The Card has a 0% introductory APR period for 18 billing cycles on purchases and balance transfers made within 60 days of account opening. After that, the variable APR is 18.24% to 28.24%.

            Cardholders who pay their cell phone bill every month with the U.S. Bank Visa® Platinum Card will receive this benefit. Get up to $600 reimbursement if your cell phone is stolen or damaged when you pay your monthly cell phone with your card.

          • Pros:
            • Great introductory APR
            • No Penalty APR
            • No Annual Fee
            • Excellent Cell Phone Protection Coverage
            • Flexible payment date
          • Cons:
            • No Rewards
            • No Welcome Bonus
            • Foreign Transaction Fee
          • Benefits:
            • Cell phone protection;
            • Auto pay & due date choice;
            • ID Navigator Powered by NortonLifeLock.
          Card detail

          American Express® Cash Magnet® best for Cash Back, 0 APR

          Cash Magnet® American Express
          Annual fee:
          $0
          Regular APR:
          17.74% - 28.74% Variable
          Our Rating:
          4.42
          scorer
          Credit score
          Good to Excellent (670-799)
          • Rewards Rate:
            • 1.5% Earn unlimited Cash Back on all purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
          • Intro Offer:
            • $200 Earn $200 Back after you spend $2,000 in purchases on your new Card in your first 6 months of Card Membership. You will receive the $200 back in the form of a statement credit.
          • Purchase Intro APR:
            0% Introductory APR for the first 15 months from the date of account opening
          • Balance Transfer APR:
            17.74% - 28.74% Variable
          • Issuer name:
            American Express®
          • Details:

            The American Express® Cash Magnet® Credit Card is one of the best cash back credit cards. You’ll earn Cash Back on every purchase at a flat rate of 1.5 % back, no matter what you buy. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.

            The card also carries a nice welcome bonus and no annual fee. Earn $200 Back after you spend $2,000 in purchases on your new Card within the first 6 months of Card Membership. You will receive the $200 cash back in the form of a statement credit.

            The American Express® Cash Magnet® Credit Card offers an introductory 0% APR on purchases and balance transfers for 15 billing cycles, followed by a variable APR of 17.74% to 28.74%.

            Whenever you travel more than 100 miles from home, Global Assist Hotline is available for 24/7 medical, legal, financial and other select emergency assistance and coordination services, such as medical and legal referrals, emergency cash wires, and missing luggage assistance. Card Members are responsible for the costs charged by third-party service providers.

            Stay in the know with exclusive access to ticket presales and Card Member-only events in a city near you. Check out Broadway shows and concert tours, family and sporting events, and more.

          • Pros:
            • No annual fee
            • 0% Intro APR
            • Uniform Bonus Tier
            • $200 Welcome Bonus
          • Cons:
            • Relatively Low Cash Back Rate
            • Limited Cash Back Reward Redemption
            • Limited Acceptance Globally
            • Foreign transaction fee
            • APR Penalty
          • Benefits:
            • $200 Back;
            • Unlimited 1.5% Cash Back;
            • 0% intro APR;
            • American Express Experiences;
            • 24/7 Travel Assistant;
            • Car Rental Loss and Damage Insurance;
            • Purchase Protection;
            • Terms Apply.
          Card detail

          Chase Freedom Unlimited® best for Cash Back, 0 APR, No Annual Fee, Daily use

          Chase Freedom Unlimited®
          Annual fee:
          $0
          Regular APR:
          17.24% - 25.99% Variable
          Our Rating:
          5
          scorer
          Credit score
          Good to Excellent (670-799)
          • Rewards Rate:
            • 5% Cash Back on travel purchased through Chase Ultimate Rewards.
            • 3% Cash back on dining at restaurants, including takeout and eligible delivery services.
            • 3% Cash Back on drugstore purchases.
            • 1.5% Cash Back on all other purchases.
          • Intro Offer:
            • $200 Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.
            • 5% Cash Back on gas station purchases on up to $6,000 spent in the first year.
          • Purchase Intro APR:
            0% Intro APR for the first 15 months that your Account is open
          • Balance Transfer APR:
            17.24% - 25.99% Variable
          • Issuer name:
            Chase
          • Details:

            The Chase Freedom Unlimited® Credit Card offers 0% introductory APR period (17.24% to 25.99% Variable after that) and a sign-up bonus that’s worth far more than most Cash-Back cards offer — all for an annual fee of $0.

            The card offers 5% back on travel booked through Chase, 3% Cash Back on restaurants and drugstore purchases and 1.5% back on other purchases.

            Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. And earn 5% cash back on gas station purchases on up to $6,000 spent in the first year.

          • Pros:
            • No Annual Fee
            • Generous rewards
            • 0% intro APR
            • Sign-up bonus
          • Cons:
            • Foreign Transaction Fee
          • Benefits:
            • Zero Liability Protection;
            • $200 intro bonus;
            • 5 percent Cash Back on all travel purchased via the Chase Ultimate Rewards portal;
            • 3 percent back on dining;
            • 3 percent back at drugstores;
            • 1.5 percent Cash Back on general purchases;
            • Auto Rental Collision Damage Waiver;
            • Trip Cancellation/Interruption Insurance;
            • Travel and Emergency Assistance Services;
            • 24/7 Fraud Protection;
            • Redeem for Cash Back;
            • Gift cards.
          Card detail

          Citi Diamond Preferred® best for 0 APR, No Annual Fee

          Diamond Preferred® Citi
          Annual fee:
          $0
          Regular APR:
          16.74% - 27.49% Variable
          Our Rating:
          3.79
          scorer
          Credit score
          Excellent (740-799)
          • Intro Offer:
            • No current offer .
          • Purchase Intro APR:
            0% Introductory APR for 12 months from date of account opening
          • Balance Transfer APR:
            16.74% - 27.49% Variable
          • Issuer name:
            Citi
          • Details:

            The Citi Diamond Preferred® Card comes with 0% introductory APR offer for 12 months on purchases and 21 months on balance transfers (16.74% - 27.49% variable after that).

            The Card charges no annual fee and gives cardholders with excellent credit a chance at a relatively low ongoing APR.

          • Pros:
            • 0% Intro APR for 12 months on purchases and 21 months on balance transfers
            • Flexible payment due date
            • No annual fee
            • Free access to FICO® score
          • Cons:
            • No rewards
            • Foreign transaction fee applied
            • Late payment fees
          • Benefits:
            • $0 Liability;
            • Digital Wallets;
            • Citi Entertainment.
          Card detail

          Citi Rewards+® best for Cash Back, No Annual Fee

          Citi Rewards+
          Annual fee:
          $0
          Regular APR:
          17.24% - 27.24% Variable
          Our Rating:
          4.45
          scorer
          Credit score
          Good to Excellent (670-799)
          • Rewards Rate:
            • 2x Points at supermarkets and gas stations (on up to $6,000 in purchases per year, then 1x points).
            • 1x Points on all other purchases.
          • Intro Offer:
            • 20,000x Bonus Points after spending $1,500 within the first 3 months of account opening.
          • Purchase Intro APR:
            0% Introductory APR for 15 months from date of account opening
          • Balance Transfer APR:
            17.24% - 27.24% Variable
          • Issuer name:
            Citi
          • Details:

            The Citi Rewards+ card has no annual fee and you may be eligible for a 0 percent introductory APR offer for 15 months on purchases from the date of account opening, plus 0 percent for 15 months from the date of your first transfer on balance transfers made in your first four months (after that, a 17.24 percent to 27.24 percent variable APR applies, with a 3 percent or $5 minimum balance transfer fee, whichever is greater).

            You’ll also earn 20,000 ThankYou points after spending $1,500 within your first three months as a new cardholder.

            The card has a 3 percent foreign transaction fee. And if you might miss a payment due date, be aware of the up to $40 late payment and returned payment fees.

          • Pros:
            • Get 20,000 welcome bonus points
            • Earn twice the points on groceries and fuel
            • 10% Points Back
            • Round up to the nearest ten points on all purchases
            • 0% APR for 15 months on purchases and balance transfers
            • No annual fee
          • Cons:
            • 3% foreign transaction fee
            • Requires a good credit score to get approval
            • Relatively low cash value of reward points
          • Benefits:
            • $0 Fraud liability;
            • 20,000 Bonus Points;
            • 2x points at supermarkets and gas stations;
            • 1x points on all other purchases;
            • Round Up to the nearest 10 points on every purchase;
            • 10% points back on the first 100,000 points;
            • Gift Cards;
            • Citi Entertainment;
            • Digital Wallets.
          Card detail

          Chase Freedom Flex℠ best for Cash Back, 0 APR, No Annual Fee, Daily use

          Chase Freedom Flex℠
          Annual fee:
          $0
          Regular APR:
          17.24% - 25.99% Variable
          Our Rating:
          5
          scorer
          Credit score
          Good to Excellent (670-799)
          • Rewards Rate:
            • 5% Cash Back on up to $1,500 on combined purchases in bonus categories each quarter you activate.
            • 5% Cash Back on travel purchased through Chase Ultimate Rewards.
            • 3% Cash Back on dining at restaurants, including takeout and eligible delivery services.
            • 3% Cash Back on drugstore purchases.
            • 1% Cash Back on all other purchases.
          • Intro Offer:
            • $200 Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.
            • 5% Cash Back on gas station purchases on up to $6,000 spent in the first year.
          • Purchase Intro APR:
            0% Intro APR for the first 15 months that your Account is open
          • Balance Transfer APR:
            17.24% - 25.99% Variable
          • Issuer name:
            Chase
          • Details:

            The Chase Freedom Flex card offers Cash Back in a wide variety of categories.

            You’ll earn 5% Cash Back on travel (through the Chase Ultimate Rewards travel service, and also for Lyft rides). Plus, earn 5% Cash Back on gas on up to $6,000 spent in the first year. You’ll also get 3% Cash Back on restaurant purchases, on drugstore purchases and 1% Cash Back on all other purchases.

            Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening.

            The card offers a 15-month 0% annual percentage rate for purchases and balance transfers, after which the APR is 17.24% - 25.99% Variable. The card charges no annual fee but 5%, or a $5 minimum fee, on balance transfers.

          • Pros:
            • $200 sign-up bonus
            • High cash back rewards on quarterly rotating bonus categories
            • Decent cash back rewards on select spending categories
            • 0% intro APR on purchases
            • No annual fee
          • Cons:
            • Foreign transaction fee
            • Rotating spending categories require activation
            • No intro APR on balance transfers
          • Benefits:
            • 5% Cash Back on gas;
            • 5% Cash Back on up to $1,500 on combined purchases in bonus categories;
            • 5% Cash Back on travel purchased through Chase Ultimate Rewards;
            • 3% Cash Back on dining at restaurants, including takeout and eligible delivery services;
            • 3% Cash Back on drugstore purchases;
            • 1% Cash Back on all other purchases;
            • $200 Cash Back;
            • Zero Liability Protection;
            • Extended Warranty Protection;
            • Trip Cancellation/Interruption Insurance;
            • Cell Phone Protection;
            • Auto Rental Collision Damage Waiver;
            • Travel and Emergency Assistance Services.
          Card detail

          Citi Double Cash best for Cash Back, No Annual Fee, Daily use

          Double Cash Citi
          Annual fee:
          $0
          Regular APR:
          17.74% - 27.74% Variable
          Our Rating:
          4.55
          scorer
          Credit score
          Good to Excellent (670-799)
          • Rewards Rate:
            • 2% Cash Back on every purchase with unlimited 1% Cash Back when you buy, plus an additional 1% as you pay for purchases.
          • Intro Offer:
            • $200 Cash Back after spending $1,500 on purchases in the first 6 months of account opening.
          • Balance Transfer APR:
            17.74% - 27.74% Variable
          • Issuer name:
            Citi
          • Details:

            The Citi® Double Cash Credit Card offers a few concrete ways in which you can better your financial situation, improve your credit card habits and enjoy cash back rewards without the fuss of tracking rotating categories.

            Earn 2% Cash Back on every purchase with unlimited 1% Cash Back when you buy, plus an additional 1% as you pay for purchases. For a limited time earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.

            The Citi® Double Cash offers a 0% percent (for 18-months) introductory APR offer on balance transfers (17.74 percent to 27.74 percent variable APR after).

            The Citi Double Cash extends a myriad of security and fraud protections.

          • Pros:
            • Flat-rate Cash Back Rewards on Everything
            • High Rewards Rate
            • No annual fee
            • Attractive Intro APR on Balance Transfers
          • Cons:
            • Losing your 1% Cash-Back Is Pretty Easy
            • Foreign transaction fee
            • Balance Transfer Fee
          • Benefits:
            • Citi Entertainment;
            • 2% Cash Back on every purchase;
            • Fraud Protection;
            • The Lost Wallet Service;
            • $0 Liability for Unauthorized Charges.
          Card detail

          HSBC Gold Mastercard® best for 0 APR, Low Interest

          Gold Mastercard® HSBC Bank
          Annual fee:
          $0
          Regular APR:
          12.99% - 22.99% Variable
          Our Rating:
          3.68
          scorer
          Credit score
          Good to Excellent (670-799)
          • Purchase Intro APR:
            0% Introductory APR will apply for the first 18 months from Account opening
          • Balance Transfer APR:
            12.99% - 22.99% Variable
          • Issuer name:
            HSBC
          • Details:

            The HSBC Gold Mastercard is a solid option for a credit card with 0 percent intro APR on purchases and balance transfers for the first 18 months (12.99% to 22.99% variable thereafter). This card also does not charge an annual fee, charges no penalty APR for missed payments and waives some late fees.

            The HSBC Gold also provides fraud protection, extended warranties up to an additional year, and coverage on most purchases up to $1,000 against accidental damage or theft for 90 days after the purchase. Plus, price protection will refund the difference if you make a purchase and find it advertised for less within 60 days of your purchase. In addition, you can see one of your FICO 8 Credit Scores for free with this card. This is based on your Equifax credit report.

            Because it is a Mastercard, you’ll benefit from Mastercard Airport Concierge. With this perk, you’ll get a 15% discount on Airport Meet and Greet services. Airport concierges are available to escort you through the terminal, and may make your trip through security or immigration faster.

          • Pros:
            • 0% Intro APR for the first 18 months on balance transfers and purchases
            • No Annual Fee
            • No Foreign Transaction Fee
            • No penalty APR
            • Late fee waiver
            • Zero Liability Policy
          • Cons:
            • No rewards
            • High balance transfer fee
          • Benefits:
            • FICO® score;
            • Zero Liability for Unauthorized Purchases;
            • Mastercard ID Theft Protection;
            • Priceless Cities;
            • Priceless Golf;
            • Travel Accident Insurance;
            • Mastercard Airport Concierge;
            • MasterRentalTM Coverage.
          Card detail

          Short Review of Best Low Interest Credit Cards

          NameBest forPurchase APRBalance Transfer APRRewards RateApply
          Capital One VentureOne Rewards Credit Card
          4.72
          Rewards, No Annual Fee, Daily use17.99% - 27.99% Variable17.99% - 27.99%
        • 5x Miles per dollar on hotels and rental cars booked through Capital One Travel.
        • 1.25x Miles per dollar on all purchases.
        • Apply now
          On Capital One‘s site
          Capital One Quicksilver Cash Rewards Credit Card
          4.58
          Cash Back, No Annual Fee, Daily use17.99% - 27.99% Variable17.99% - 27.99%
        • 1.5% Cash Back on every purchase.
        • Apply now
          On Capital One‘s site
          Upgrade Cash Rewards Visa®
          4.35
          Good credit score14.99% - 29.99% Regular
        • 1.5% Cash Back on payments.
        • Apply now
          On Upgrade‘s website
          Upgrade Triple Cash Rewards Visa®
          3.53
          14.99% - 29.99% Regular
        • 3% Cash Back on Home, Auto and Health categories.
        • 1% Cash Back on everything else.
        • Apply now
          On Upgrade‘s website
          Merit Platinum
          3.8
          None
        • This card doesn't offer cash back, miles or points.
        • Apply now
          On Meritplatinum‘s website
          WebBank Petal® 2 “Cash Back, No Fees” Visa®
          3.8
          Beginner, No history15.99% - 29.99% Variable
        • 1% - 1.5%:
        • Cash Back after making 12 on-time monthly payments.
        • 2% - 10%:
        • Cash Back from select merchants.
        • Apply now
          On WebBank‘s site
          Applied Bank® Secured Visa® Gold Preferred® Credit Card
          4.23
          18 year old9.99% Fixed
        • This card doesn't offer cash back, miles or points.
        • Apply now
          On Applied Bank®‘s site
          First Progress Platinum Prestige Mastercard® Secured Credit Card
          3.8
          13.74% Variable
        • This card doesn't offer cash back, miles or points.
        • Apply now
          On First Progress’s site
          Unique Platinum
          3.1
          0.00% Regular
        • $25 With the Unique Platinum Card you’ll also get $25 in Reward Dollars every month that you can use to save in your choice of over 500,000 ways.
        • Apply now
          On Uniquecardservices‘s website
          Accepted Platinum
          4
          None
        • This card doesn't offer cash back, miles or points.
        • Apply now
          On Acceptedplatinum‘s website
          First Progress Platinum Select Mastercard® Secured Credit Card
          3.5
          17.74% Variable
        • This card doesn't offer cash back, miles or points.
        • Apply now
          On First Progress’s site
          Capital One Spark Cash Select - $500 Cash Bonus
          5
          16.24% - 22.24% Variable16.24% - 22.24%
        • 5% Cash Back on hotels and rental cars booked through Capital One Travel.
        • 1.5% Cash Back for your business on every purchase, everywhere, no limits or category restrictions.
        • Apply now
          On Capital One‘s site
          Blue Cash Everyday® Card from American Express
          4.24
          Cash Back, Gas, 0 APR, No Annual Fee, Families, Shopping, Groceries17.74% - 28.74% Variable17.74% - 28.74%
        • 3% Cash Back on groceries at U.S. supermarkets, on up to $6,000 per year in purchases (then 1%).
        • 3% Cash Back on U.S. online retail purchases on up to $6,000 per year in purchases (then 1%).
        • 2% Cash Back on gas at U.S. gas stations on up to $6,000 per year in purchases (then 1%).
        • 1% Cash Back on other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
        • Learn more
          U.S. Bank Visa® Platinum Card
          3.65
          0 APR, No Annual Fee18.24% - 28.24% Variable18.24% - 28.24%
        • This card doesn't offer cash back, miles or points.
        • Learn more
          American Express® Cash Magnet®
          4.42
          Cash Back, 0 APR17.74% - 28.74% Variable17.74% - 28.74%
        • 1.5% Earn unlimited Cash Back on all purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
        • Learn more
          Chase Freedom Unlimited®
          5
          Cash Back, 0 APR, No Annual Fee, Daily use17.24% - 25.99% Variable17.24% - 25.99%
        • 5% Cash Back on travel purchased through Chase Ultimate Rewards.
        • 3% Cash back on dining at restaurants, including takeout and eligible delivery services.
        • 3% Cash Back on drugstore purchases.
        • 1.5% Cash Back on all other purchases.
        • Learn more
          Citi Diamond Preferred®
          3.79
          0 APR, No Annual Fee16.74% - 27.49% Variable16.74% - 27.49%
        • This card doesn't offer cash back, miles or points.
        • Learn more
          Citi Rewards+®
          4.45
          Cash Back, No Annual Fee17.24% - 27.24% Variable17.24% - 27.24%
        • 2x Points at supermarkets and gas stations (on up to $6,000 in purchases per year, then 1x points).
        • 1x Points on all other purchases.
        • Learn more
          Chase Freedom Flex℠
          5
          Cash Back, 0 APR, No Annual Fee, Daily use17.24% - 25.99% Variable17.24% - 25.99%
        • 5% Cash Back on up to $1,500 on combined purchases in bonus categories each quarter you activate.
        • 5% Cash Back on travel purchased through Chase Ultimate Rewards.
        • 3% Cash Back on dining at restaurants, including takeout and eligible delivery services.
        • 3% Cash Back on drugstore purchases.
        • 1% Cash Back on all other purchases.
        • Learn more
          Citi Double Cash
          4.55
          Cash Back, No Annual Fee, Daily use17.74% - 27.74% Variable17.74% - 27.74%
        • 2% Cash Back on every purchase with unlimited 1% Cash Back when you buy, plus an additional 1% as you pay for purchases.
        • Learn more
          HSBC Gold Mastercard®
          3.68
          0 APR, Low Interest12.99% - 22.99% Variable12.99% - 22.99%
        • This card doesn't offer cash back, miles or points.
        • Learn more

          Capital One VentureOne Rewards Credit Card

          If you love traveling but hate high interest (who doesn't?!), you're going to like the Capital One VentureOne Rewards, one of the top travel rewards cards. New cardholders can get the interest-free period for purchases and transfers (15 months), while the ongoing variable APR is 17.99% - 27.99%. As for the rewards, this card will earn you 20,000 bonus miles (once you spend $500 on purchases within the first 3 months from account opening), 5 miles on hotels and car rentals, 1.25 miles per dollar on all purchases, and there are several redemption options.

          Read more about Capital One VentureOne Rewards Credit Card

          Capital One Quicksilver Cash Rewards Credit Card

          The Capital One Quicksilver can help you finance your next big purchase while earning you an unlimited 1.5% cash back on all purchases. The promo 0% interest offer lasts for 15 months after account opening and after the variable APR is 17.99% - 27.99%.

          Read more about Capital One Quicksilver Cash Rewards Credit Card

          WebBank Petal® 2 “Cash Back, No Fees” Visa®

          This card is truly a no-fee card, and you can qualify for it even with average credit. Although it's a card for beginners, there's no security deposit. The variable APR is 15.99% - 29.99%. You can also earn up to 1.5% cashback on all purchases.

          Read more about WebBank Petal® 2 “Cash Back, No Fees” Visa®

          Blue Cash Everyday® Card from American Express

          The Blue Cash Everyday® from American Express® comes with a 15-month 0% APR offer on purchases, and the ongoing, variable APR is 17.74% - 28.74%. It’s for people who spend a lot on groceries and gas as it has high rewards rates for these categories.

          Read more about Blue Cash Everyday® Card from American Express

          U.S. Bank Visa® Platinum Card

          The US bank Visa® Platinum is the card with the longest 0% interest period – 18 billing cycles, and it's for both balance transfers and purchases. After the intro period ends, the variable APR is 18.24% - 28.24%, slightly higher than of the other cards on this list. But that won't make much difference if you manage to pay off most of your debt during the intro period.

          Read more about U.S. Bank Visa® Platinum Card

          American Express® Cash Magnet®

          The American Express® Cash Magnet® is a simple cash back credit card that also offers low-interest rates. If you have a big purchase coming, you can take advantage of its 15-month 0% APR offer. The ongoing, variable APR is 17.74% - 28.74%. The cash back rate is 1.5% on all purchases, and the Plan It® and Pay It® feature can help you manage your balance (it comes with a small monthly fee).

          Read more about American Express® Cash Magnet®

          Chase Freedom Unlimited®

          This card offers new cardholders 0% APR on purchases and transfers for 15 months, and the variable APR is 17.24% - 25.99%. Additionally, it earns you 5% cash back on travel (if purchased through Chase Ultimate Rewards), 3% on dining and drugstores and an unlimited 1.5% cash back on all purchases. There's a $200 sign-up bonus too (after you spend $500 on purchases in the first 3 months).

          Read more about Chase Freedom Unlimited®

          Citi Diamond Preferred®

          If you’re looking for a low-interest card that is also good for a balance transfer, the Citi Diamond Preferred® is worth considering. It offers a lengthy interest-free period (12 months for purchases and 21 months for balance transfer). The variable APR after is 16.74% - 27.49%. If you want to monitor your credit score, this card gets you free access to it.

          Read more about Citi Diamond Preferred®

          Citi Rewards+®

          If you want to earn rewards and transfer your balance to a low-interest card, you should opt for Citi Rewards+®. The 0% APR offer on balance transfers and purchases gives new cardholders a 15-month break from interest. After, they'll pay an ongoing variable APR of 17.24% - 27.24%. Regarding the rewards program, it'll earn you 2x points at supermarkets, and gas stations and 1x on everything else. It also includes a few other features that give your rewards a boost.

          Read more about Citi Rewards+®

          Chase Freedom Flex℠

          Besides low interest, the Chase Freedom Flex℠ also offers great rewards. Its 15-month 0% APR on purchases and transfers is great if you're eyeing something pricey, like a new laptop. After that, you'll be charged a variable APR of 17.24% - 25.99%. There's a generous 5% cash back on travel purchased through Chase Ultimate Rewards, 5% cash back on up to $1,500 on combined purchases in bonus categories, 3% cash back at restaurants (including takeout and delivery) and drugstores, and 1% cash back on everything else.

          Read more about Chase Freedom Flex℠

          Citi Double Cash

          As its name says, Citi Double Cash earns you double cash back, 1% when you buy and 1% when you pay for the purchase. It has a great, 18-month 0% APR for balance transfers, while the ongoing APR is 17.74% - 27.74%. Based on their creditworthiness, some cardholders might be eligible for the Citi Flex Plan, with which you can pay off your purchases with fixed monthly payments, and you can also borrow from your credit line.

          Read more about Citi Double Cash

          HSBC Gold Mastercard®

          The HSBC Gold Mastercard® offers a lengthy zero-interest period on balance transfers and purchases. There's a 0% APR for 18 months, and after the variable, the ongoing rate is 12.99% - 22.99%. Another great thing about this card is that it has no penalty APR and you get one waived late fee per year. However, it lacks a rewards program, and its 4% balance transfer fee is slightly higher than the usual 3%.

          Read more about HSBC Gold Mastercard®

          What do interest rate and APR mean, and how do they work?

          Unless you pay your balance in full every month, credit card companies will charge you interest. This interest is usually expressed as the annual percentage rate (APR). This APR is variable, which means it will occasionally change based on the prime rate.

          icon-search

          For example, the current (May 2021) prime rate in the U.S. is 3.25%, so if your credit card charges the prime rate plus 10%, the APR will be 13.25%.

          You will only be charged interest if you don't pay your balance on time, and the APR will be applied to the remaining, unpaid balance on your credit card. The credit card company will add that charge to your balance. So if you make a habit of carrying your balance month-to-month you'll end up paying interest on your interest. Things could easily get out of control, which is why you need to be careful even with low-interest credit cards.

          How does APR differ from the monthly interest rate?

          You can notice that the first letter in APR stands for annual (percentage rate). However, if your APR is 18%, that's not the monthly interest rate you'll get charged on your balance. Instead, it's simply that rate divided by 12. So, you'll pay 18%/12 = 1.5% interest rate on your outstanding balance every month. You calculate your daily periodic rate in the same way, you just divide with 365, instead of 12. It will be 18%/365 = 0.049%.

          Let’s go through a short example to better understand how APR works. John has a $2,000 balance on his credit card. He pays off his balance in equal installments, $60 each month. The APR he pays on his balance is 20.29% (current average APR in the U.S.). That is how the numbers of his credit card debt will look for the first month:

          Principal$2,000
          Payment (2% of balance)$60
          Monthly interest($2,000 x 20.29%)/12 months = $33.82
          Principal repayment$60 - $33.82 = $26.18
          Remaining balance$2,000 - $26.18 = $1,973.82

          With this tempo, it will take John nearly four years to pay off his balance, assuming he doesn't add up to it in the meantime. He will pay $837 in interest during that period, which is almost half of his principal amount.

          How does your credit score affect your interest rate?

          We mentioned above that the prime rate determines the APR, which is correct, but also your credit score will further define the interest rate you'll pay. Each credit company discloses a variable APR range, and which APR you get within that range will depend on your creditworthiness. Your creditworthiness is measured by your credit score.

          Credit scores show companies how 'risky' you are, how likely it is that you're going to make all your payments on time if given new credit. A high credit score means that you've managed debt well in the past, and you will get an APR that’s closer to the lower range limit. On the other hand, a low credit score will signal banks that you might default on a loan. They will set a higher APR to compensate for the risk and get most of the loan back early on.

          Usually, your FICO score will be taken into account when calculating your APR. A score above 670 is considered a good score, while a score above 740 is considered excellent. Credit card companies don't reveal the interest rate assigned for each credit score. You'll know that only after you apply for the card. Generally, you can expect to get a lower APR for a good credit score and a high one with a bad credit score.

          How to compare low-interest credit cards?

          If you're looking into low-interest credit cards, it means you want to save money, and you think you might carry a balance on your credit card. Or you just want to protect yourself from an unexpected cost, like your car breaking down or a medical bill. Whatever the reason, it’s important to find the right card that will be the best deal for you. We’ll give you a few tips on how to compare them:

          1. Do you need a 0% APR offer along with the low interest? – Is it important to you that the card has a 0% APR period? You might want to transfer a high-interest balance and take advantage of the interest-free period for some time. Or you are planning a large purchase, so it matters that the card has a 0% APR on purchases. The US bank Visa® Platinum and the Citi Diamond Preferred® have the lengthiest intro offers, both for balance transfers and purchases, 20 and 18 months each respectively.
          2. Interest rates – Compare the ongoing APRs of each card, and also consider your credit score which will determine your interest rate. Intro APR offers are still only short-term. What matters in the long term, if you keep a balance, is the regular APR.
          3. Fees and charges – Since your goal is saving money, you probably want to avoid any fees. First, consider the annual fee, which might outweigh the money you save on interest. All credit cards on our list are without annual fees. Then, there is the balance transfer fee, and if you're planning to transfer a balance to your new card, you should include it in your calculation. The Navy Federal nRewards Secured doesn’t have a balance transfer fee. Lastly, there are late and penalty fees which you can avoid by making at least the minimum payment on time.
          4. Rewards and benefits – Several of the cards on our list are rewards credit cards that have great deals on interest for purchases and balance transfers. So, it's possible to get a card that not only saves you money but it also earns you some.

          Making the most of your low-interest credit card

          To make the most out of your low-interest credit card, you should first take advantage of the 0% intro APR offer if it has one. Try to pay as much as you can during this period. After the period ends and if you are still carrying a balance, make an effort to pay well above your minimum payment. Of course, we advise you to pay at least the amount of the minimum payment each month to avoid late and penalty fees. In any case, carrying a balance on your credit card is never cheap, and you should manage it responsibly.

          Common APR Myths

          Let’s go through some popular myths involving APR and credit cards. We'll clarify them because believing false statements about APRs can end up costing you money.

          Myth #1 – My credit score is not that important

          We are sorry to be the ones telling you this – but your credit score matters. It's the greatest factor when the credit card company is deciding whether or not you'll get approved for the card, and later it also impacts the APR you will get. If you don't believe us, look at this table of effective interest rates that consumers with different credit scores have gotten.

          Credit score categoryEffective interest rate
          Deep Subprime (579 or lower)21.0%
          Subprime (580 - 619)20.5%
          Near Prime (620 - 659)19.0%
          Prime (660 - 719)16.5%
          Super Prime (720 or greater)13.6%
          Overall15.7%

          Source: CFPB's Consumer Credit Card Market Report

          Myth #2 – So what if I miss a payment now and then, it’s not a big deal

          Except that - it IS a big deal. First, it will affect your credit score, and we think you know how much damage a lower credit score can make. Then, let’s not forget about the penalty APR if your card has one, which is very probable that it will, as most credit cards do. The penalty APRs are much higher than the regular APRs and vary between 25% - 30%. So, if you forget or simply leave a balance hanging, you can find yourself buried in debts. Assume you have a $5,000 balance on a credit card that you're unable to pay off. Let's say that the penalty APR is 25%. If you trigger it, one year, you'll owe $6,250. Do you still believe missing payments is not a big deal? And we haven't even mentioned the late fees you could get charged with.

          FAQ

          What is the best credit card with the lowest interest rate?

          Unfortunately, we cannot answer this as the interest rate depends on your choice of credit card, your credit score, and your overall financial situation. Follow our tips on how to compare low-interest rate credit cards to find the best one for you.

          What are other credit cards to consider?

          Other great low-interest credit cards are the Discover it® chrome, BankAmericard®, and the TSB Advance Mastercard®.

          How to calculate the monthly interest rate?

          To find out your monthly interest rate you simply need to divide your APR (annual percentage rate) by 12. For example, if your APR is 18%, the monthly rate will be 18% / 12 = 1.5%.
          Hanna VolkavaHanna Volkava

          Financial and product expert

          hv@myfin.us