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Best Low Interest Credit Cards for April 2020

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Best Low Interest Credit Cards for April 2020

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Apr 01, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

Carrying a balance on your credit card from month to month can get expensive as you get hit with high interest charges. When possible, taking advantage of a 0% introductory APR card offer can help you avoid interest charges for a specified period of time, allowing 100% of your payments to go toward paying down your debt.

If you need to carry a balance longer than a 0% intro APR period will allow, you’ll want a card with low ongoing interest. Based on our research of cards available through CompareCards, as well as top cards offered by major issuers, we’ve selected eight introductory 0% APR and low interest credit cards that can help save you money.

Best credit card with low ongoing interest: Prime Platinum Visa Credit Card

Best for: If you need to carry a balance from time to time and want to minimize the interest you’re charged — and if you’re willing to join a credit union — the Lake Michigan Credit Union Prime Platinum Visa Credit Card could help you manage your finances.

Why we like it: This card’s regular purchase APR can be as low as 7.75% variable. That’s much lower than you’ll find with many other credit cards, some of which have APRs above 20%. If you qualify for an APR at the low end of the Prime Platinum Visa Credit Card’s range, that’s a huge potential savings if you need to carry a balance — plus, the annual fee is $0.

It’s also important to note that while some credit unions have membership requirements based on where you live or work, anyone is able to join Lake Michigan Credit Union.

Other benefits: This card offers free car rental insurance and emergency card replacement.

Best intro 0% APR card for balance transfers: Citi Simplicity® Card - No Late Fees Ever

  • 0% for 12 months on Purchases

  • 0% for 21 months on Balance Transfers

  • 14.74% - 24.74% (Variable)

Highlights
  • No Late Fees, No Penalty Rate, and No Annual Fee... Ever
  • 0% Intro APR on balance transfers for 21 months from date of first transfer. All transfers must be completed in first 4 months. After that, the variable APR will be 14.74% - 24.74%, based on your creditworthiness.
  • 0% Intro APR on purchases for 12 months from date of account opening. After that, the variable APR will be 14.74% - 24.74%, based on your creditworthiness.
  • If you transfer a balance with this offer, after your 0% Intro purchase APR expires, both new purchases and unpaid purchase balances will automatically accrue interest until all balances, including your transferred balances, are paid in full
  • There is a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater.
  • The standard variable APR for Citi Flex Plan is 14.74% - 24.74%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
  • Stay protected with Citi® Quick Lock and $0 liability on unauthorized charges

See additional details for Citi Simplicity® Card - No Late Fees Ever

More Info

Best for: If you need a long period of time to pay off transferred credit card debt without incurring interest charges, the Citi Simplicity® Card - No Late Fees Ever could be a great fit.

Why we like it: With an intro APR offer of 0% for 21 months on balance transfers, this card offers the longest intro 0% interest period we could find. After the intro period, an APR of 14.74% - 24.74% (variable) applies. Be aware that in exchange for this long  intro period, the balance transfer fee is a bit on the high side. It’s 5% of each balance transfer; $5 minimum.

The Citi Simplicity® Card - No Late Fees Ever also offers an intro 0% for 12 months on purchases. After, an APR of 14.74% - 24.74% (variable) applies.

The card’s annual fee is $0.

Other benefits: The Citi Simplicity® Card - No Late Fees Ever has no late fees or penalty rates.

Best intro 0% APR card with no balance transfer fee: Chase Slate®

Best for: If you want to transfer existing debt from a high interest credit card but don’t want to pay a balance transfer fee, you’re in luck — the Chase Slate® offers a generous balance transfer period and charges $0 for the first 60 days that your account is open, after that, either $5 or 5% of the amount of each transfer, whichever is greater.

Why we like it: This card offers a 0% Intro APR on Purchases for 15 months (after, 16.49% - 25.24% variable) and a 0% Intro APR on Balance Transfers for 15 months (after, 16.49% - 25.24% variable).

But where it really stands out is its lack of a balance transfer fee if you act fast.

Other benefits: With this card, you can get a complimentary DashPass membership for three months, after which you’ll be automatically enrolled in DashPass at 50% off for the next nine months. DashPass is DoorDash’s subscription service that provides unlimited food deliveries for a $0 delivery fee on DoorDash orders over $12 (other fees may apply). Activate by Dec. 31, 2021.

Best intro 0% APR card for purchases: Capital One® Quicksilver® Cash Rewards Credit Card

Best for: If you plan on making a large purchase such as a new appliance or laptop soon, the Capital One® Quicksilver® Cash Rewards Credit Card offers the opportunity to pay off new purchases over a specific time without incurring interest charges.

Why we like it: With an offer of 0% intro on purchases for 15 months, the Capital One® Quicksilver® Cash Rewards Credit Card can help you make a big purchase and spread those payments out during that time. After the intro period, an APR of 15.49% - 25.49% (variable) applies. You’ll also earn solid flat-rate rewards — 1.5% cash back on every purchase, every day.

If you need to pay off existing credit card debt, you’ll like the offer of 0% intro on balance transfers for 15 months. The balance transfer fee is 3%, which is fairly standard.

Other benefits: Earn a one-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening.

Best low interest card with cashback rewards: Discover it® Cash Back

  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically*

  • Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically. *

  • Any amount, any time. Cash back rewards never expire*

Highlights
  • INTRO OFFER: Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched.
  • Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • No annual fee.
  • See Rates & Fees

See additional details for Discover it® Cash Back

More Info

Best for: If you want a credit card with low interest and high rewards, the Discover it® Cash Back could be exactly what you’re looking for.

Why we like it: This card offers an intro 0% for 14 months on purchases (after, 11.99% - 22.99% variable) and an intro 0% for 14 months on balance transfers (after, 11.99% - 22.99% variable). There’s a 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*.

A high rewards rate is where the Discover it® Cash Back stands out. Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.

Read: 2020 Discover Cashback Calendar

The card’s annual fee is $0.

Other benefits: For new cardmembers, Discover will match ALL the cash back you've earned at the end of your first year, automatically. There's no signing up. And no limit to how much is matched. Plus, once you sign up, Discover will monitor the dark web on your behalf at no cost, and will alert you if your Social Security Number is found on a dangerous site.

Best low interest card for bad credit: DCU Visa® Platinum Secured Credit Card

Best for: If you need to rebuild your credit score, a secured card (which requires a security deposit that becomes your credit limit) is a good way to do that. The DCU Visa® Platinum Secured Credit Card offers a lower APR than many competing secured cards.

Why we like it: This card has an APR of 13.75% variable. In a world where many secured cards have interest rates of well above 20%, the DCU Visa® Platinum Secured Credit Card has the potential to save you a significant chunk of money if you have to carry a balance once in a while.

Plus, the annual fee is $0.

Read: Best Credit Cards for Bad Credit

Other benefits: This card is compatible with Apple Pay®, Google Pay™, and Samsung® Pay.

Best low APR card for military members: USAA® Rate Advantage Visa Platinum® Card

Best for: If you qualify for USAA membership (active military, former military, an eligible family member, or a cadet or midshipman), you are eligible to apply for the USAA® Rate Advantage Visa Platinum® Card and have a chance at getting an excellent ongoing APR rate.

Why we like it: This card’s APR range is 8.40% - 25.40% variable. If you’re approved for an APR at the lower end of that range, it could save you a significant amount when carrying a balance compared to a card with a higher interest rate.

We also like that this card’s annual fee is $0.

Other benefits: Don’t worry about foreign transaction fees, because this card has none. And if you enter active military duty, any existing balance you have on your card at the time you enter active duty will qualify for a special 4% APR, which is better than the 6% required by the Servicemembers Civil Relief Act (SCRA).

Read our review of the best USAA credit cards

Best low interest business card: U.S. Bank Business Platinum

Best for: If you’re a small business owner who needs a card with a 0% intro APR for the first year and a low ongoing APR after that, the U.S. Bank Business Platinum is a good option to consider.

Why we like it: The intro purchase APR is 0% for 20 billing cycles. After, an APR of 9.99%-17.99%* (variable) applies. The intro balance transfer APR is 0% for 20 billing cycles. After, an APR of 9.99%-17.99%* (variable) applies. Paying no interest for a year is a solid intro offer, and the ongoing APR is good if you are approved for an APR at the lower end of the range. The balance transfer fee is 3%, which is fairly standard.

This card’s annual fee is $0*.

Other benefits: If you issue cards to your employees, you can set spending controls on their cards by time, place and dollar amount.

FAQ on low interest credit cards

How does credit card interest work? The interest rate on your credit card is listed on your credit card statements is your APR — annual percentage rate. If you want to understand your daily interest rate, just divide your APR by 365. Generally, you can expect to be charged interest if you don’t pay your balance off in full before the due date. However, most credit cards have a grace period where if you pay off your balance in full before the due date, you will not incur interest charges. Any balance remaining will be assessed interest.

What’s the difference between interest rate and APR? For some financial products, such as car loans and mortgages, the interest rate and the APR can differ. However, for credit cards, they’re the same thing.

How high can a credit card’s APR be? There’s no federal law that limits the interest rate a credit card company can charge, according to the Consumer Financial Protection Bureau. However, companies are subject to the law of the state in which they have their headquarters. Credit union credit cards, however, are subject to a federal law that currently caps interest rates at 18%.

What’s a good credit card APR? Credit card issuers will base your APR on a variety of factors. In general, the better your credit score, the more likely you are to be approved for a lower APR; however, there is no guarantee. A study by CompareCards found that the average APR offered to those with really good credit was 16.78%, while the average APR offered to those with bad credit was 24.14%.

Can I get a fixed rate credit card with low interest? Fixed rate cards are less common than they used to be before the Credit CARD Act of 2009. Now, most credit cards are variable rate cards, which means their APRs fluctuate based on an index such as the prime rate. However, you can sometimes still find fixed rate credit cards these days, generally through credit unions.

How do I check the interest rate on my credit card? Your APR should be listed on your credit card statements.

Can I get a 0% intro APR credit card with bad credit? Probably not. Most credit cards with good 0% intro APR offers require a good credit score or better. A good credit score is one that’s anywhere from 670 to 739 — above that, and your score is considered very good or excellent.

How to use a low interest credit card

Follow the tips below so you get the most value out of your low interest card:

  • Don’t overspend. Even if you must carry a balance, don’t let that balance keep growing. Plan a concrete amount that you can pay each month and stick to it — and if you can, make more than the minimum payment, because when you only pay the minimum, much of your payment goes toward interest charges rather than the principal of the debt.
  • Set up autopay. This is a good way to ensure you always pay on time, which is the most important thing you can do to build a good credit score.
  • Pay on time. If you decide not to set up autopay, then make sure you’re aware of your due date. Paying late can result in you losing any 0% intro APR offers your card has.
  • Transfer balances quickly. If your card offers a 0% intro APR period, be aware that there might be a limited window of time to take advantage of the 0% APR offer. Many cards require you to transfer a balance within 60 days to qualify for the intro APR.
  • Continue to make payments on any transferred balances. If you request a balance transfer, be aware that you might still have a final payment due on your old card.

The information related to the Chase Slate® has been independently collected by CompareCards and has not been reviewed or provided by the issuer of this card prior to publication.


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