September 6, 2024

5 Best Low-Interest Credit Cards

Most people have a credit card — and for good reason. These cards make it easier to do everything from booking a hotel room to buying groceries, all while bridging household cash flows between paychecks.

But if you rely on a credit card and start to spend more than you can pay back every month, you might end up paying a lot of interest. You can avoid racking up interest on credit cards by using EarnIn’s Cash Out to access your pay as you work. But if you're still in need of a credit card, the good news is that low-interest credit cards can save you from big bills and make shopping easier.

Here’s a guide to finding the best credit card offers with the lowest interest.

What kinds of low-interest credit cards are there?

Credit card interest rates aren’t the only thing to consider. Some cards offer rewards and different payment structures that can impact your experience.

Here are a few types of credit cards to know:

Reward cards

Rewards cards offer cash back or redeemable points for items, travel, or other purchases. Not every option offers rewards, but many low-interest credit cards do. The catch is that rewards-based cards often charge expensive annual fees, so before signing on, do the math to make sure you’ll get the value.

Travel cards

Cardholders who fly a lot — personally or for work — might benefit from cards with special travel perks, like priority airline boarding, free bag checking, and reward points with partner airlines. This card type isn’t as desirable if you’re an infrequent traveler because the points and rewards could sit unused.

Secured cards

Most credit cards are unsecured, meaning the lender doesn't ask you for any form of collateral (like a deposit or other asset) to guarantee your repayment. The challenge with unsecured cards is that you usually need a reasonably good credit score for approval.

Instead, you could opt for a secured card — you pay a cash deposit, which the lender holds until you’re ready to close the account. It’s easier to find secured cards with low interest rates and no fees, making credit-building more accessible. But most secured options have lower credit limits.

Cards with 0% APR introductory periods

It’s hard to find zero-interest credit cards that never charge you at all. A good second option is a card with a 0% APR introductory period that doesn’t charge interest until the promotional period is up — usually a few months. All the spending you do in that period is totally interest-free. But make sure you know when that period ends.

How to choose the best fit for you

Don’t sign on for the first credit card you find. Comparing the options from various issuers can help you score the best deal possible.

Here are some factors to think about:

Annual Percentage Rate (APR). A credit card's APR is a percentage that expresses the cost of borrowing money every year, including interest and fees. Knowing the APR can help you gauge the long-term cost of borrowing a particular credit card and hopefully pay less over time. A good APR for a credit card is around 20%, but you can often find lower rates if you hunt.
Introductory APR period. Finding a card with a good introductory APR period can help you make purchases without spending anything on interest, as long as you repay the balance before the promotion's end date.
Balance transfer fees. You might want to transfer your balance from a high-interest credit card to one with lower interest. Before taking the leap, make sure there aren’t high fees for doing so. The extra cash you spend here could negate the benefits of transferring your balance.
Ongoing fees. Examining ongoing costs, like annual fees or late payment penalties, helps you avoid unexpected expenses that could offset the benefits of a low interest rate.
Reward programs. Figure out what your priorities are when it comes to rewards. Do you always go to a certain gas station? Do you love to travel? Do you prefer to only use a credit card in emergencies (and therefore don’t need rewards)? To make the most out of your card, find one that aligns with your lifestyle and spending habits.

5 best low-interest credit cards

There are tons of low-APR credit cards available — you just need to know where to look.

Here are five of the best credit cards with 0% APR or low variable APR:

1. Bank of America BankAmericard

Annual fee: $0

Promotional interest rate: 0% for 18 billing cycles on purchases and balance transfers

Ongoing interest rate: 16.24% to 26.24%

The BankAmericard from Bank of America is a no-annual-fee card with a competitive interest rate, plus 18 months with 0% APR. This makes it a great option for balance transfers. Plus, missing a payment doesn’t automatically increase your interest rate like some competitors, which can make a big difference if you don’t have a steady income. The downside is that this card doesn’t offer any additional rewards or cash back.

2. Citi Diamond Preferred

Annual fee: $0

Promotional interest rate: 0% for 12 months on purchases

Ongoing interest rate: 18.24% to 28.99%

The Citi Diamond Preferred is another $0 annual fee card with a 0% introductory APR, but the promotion only lasts for a year. The plus side is that the balance transfer rate is 0% for 21 months. This card also gives cardholders Mastercard ID Theft Protection for no additional charge. And there are no rewards or cash back options.

3. Wells Fargo Activate Cash Card

Annual fee: $0

Promotional interest rate: 0% for 15 months on purchases and qualifying balance transfers

Ongoing interest rate: 20.24% to 29.99%

The Wells Fargo Activate Cash Card is the first on the list to give you cash back on all purchases. This $0 annual fee card offers 2% cash back, along with up to $600 of cell phone protection against damage or theft, auto rental collision damage waiver, and roadside dispatch. This makes it perfect for frequent drivers. Cardholders also get Credit Close-Up, which lets you monitor changes to your credit score.

4. CapitalOne Quicksilver Mastercard

Annual fee: $0

Promotional interest rate: 0% for 15 months on purchases and balance transfers

Ongoing interest rate: 19.99% to 29.99%

Earn a one-time $200 cash bonus when you sign up for the CapitalOne Quicksilver Mastercard and spend $500 on purchases within the first three months. Plus, earn 1.5% cash back on every purchase. As a cardholder, you also don't pay any annual or foreign transaction fees, which is handy for travel.

5. Applied Bank Secured Visa Card Preferred Card

Annual fee: $0

Promotional interest rate: N/A

Ongoing interest rate: 9.99%

As a secured credit card, the Applied Bank Secured Visa Card Preferred Card is available to all applicants without a credit check or minimum credit score. Enjoy all the perks of a traditional credit card without the stress of borrowing money by paying a deposit between $200 and $1,000, with the ability to increase your deposit up to $5,000 after approval. The catch is that there is interest — 9.99% APR, which is quite low compared to other options.

How to lower credit card interest

Credit card interest rates aren’t always set in stone. Here are some ways to find low-interest cards and pay as little as possible:

Pay the balance in full each month

In most cases, credit card interest only accumulates if you leave a balance on your card instead of paying it off. Spending within your means and paying the bill in full at the end of the month keeps you from paying interest.

Negotiate lower interest rates with the issuer

During your research, you might find issuers with better rates than your current card. If you’re a good customer, try calling your current card provider and attempt to negotiate for a better interest rate. Odds are, they don’t want to lose your business and might lower your rate.

Transfer balances to a card with a lower interest rate or 0% APR period
If you have a high-APR credit card with a balance, consider transferring that balance over to a card with a promotional 0% APR rate. This reduces the interest accumulating and gives you a chance to repay it without racking up more.

Make multiple payments per month

Making more payments throughout the month can be much more manageable than a lump sum at the end. Consider using bonuses, tax refunds, or extra forms of cash to pay off the balance faster and avoid interest. It’s also a good idea to make a budget and reduce your spending to free up extra cash for your credit card debt.

Skip the credit card and use EarnIn

Credit cards are often the go-to when covering expenses, emergency or otherwise. But EarnIn gives you access to your pay before your paycheck lands — without the interest.

With EarnIn’s Cash Out tool, you can get up to $100/day and up to $750/pay period with no interest, no mandatory fees, and no credit checks.

Stay on track with your finances and download EarnIn for free.

Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.

1. EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out.S ubject to your available earnings, Daily Max and Pay Period Max. EarnIn services may not be available in all states. Restrictions and/or third party fees may apply, for more information please visit http://EarnIn.com/TOS.

2. EarnIn does not charge interest on Cash Outs. EarnIn does not charge mandatory fees for use of its services. Restrictions and/or third party fees may apply, for more information please review our Terms of Service available at http://EarnIn.com/TOS.