6 Best Low APR Interest Credit Cards – Reviews & Comparison
Generally, it’s wise to avoid carrying balances on your credit cards. Credit card balances quickly rack up interest charges, eating into your monthly personal budget and hampering your ability to save and invest. Over time, unpaid credit card balances could compel you to enroll in credit counseling, or even cause you to declare bankruptcy.
However, it’s sometimes impossible to avoid carrying credit card balances. For instance, if your car breaks down and you have no other way to get to work, charging the repair to your credit card is better than losing your job – even if you know it’ll take some time to pay off the balance.
Low APR credit cards make it easier to carry balances from month to month because they don’t accrue interest as rapidly, and their carried balances grow more slowly as a result. If you habitually carry balances from month to month, or want to do so in the future without paying through the nose, consider these low APR credit card options.
13.99% APR (variable); Minimal Fees
Barclaycard Ring is not your typical credit card – and that’s generally a good thing. Dubbed “the first social credit card,” it’s built around an active user community that shares financial tips and advice among members.
Ring has a very low purchase, balance transfer, and cash advance APR. It also lacks an annual fee and a foreign transaction fee, though there is a balance transfer fee. A 15-month 0% APR balance transfer promotion further sweetens the pot.
See our Barclaycard Ring Review for more information. Find out how you can apply for this card here.
13.74% to 24.74% APR (variable); 0% Intro APR on Purchases & Balance Transfers for 14 Months; 5% Cash Back in Rotating Categories
You can redeem your cash in any amount as a statement credit, bank account deposit, check, or Amazon.com purchase credit. Plus, Discover doubles all cash back earned in the first year of card membership.
In addition to the cash back rewards program, the main perks of the Discover it Cash Back card include a solid 0% introductory APR period, no penalty APR, no annual fee, and a free FICO credit score with card membership. Drawbacks include costly cash advances.
See our Discover it Cash Back Review for more information.
13.74% to 24.74% APR (variable); 0% Intro APR on Purchases & Balance Transfers for 14 Months; 2% Cash Back on Dining & Gas
Like the regular Discover it Cash Back card, Discover it Chrome has a nice cash back rewards program that benefits cardholders who pay their balances in full each cycle. Dining and gas purchases earn 2% cash back, up to $1,000 per quarter, and an unlimited 1% after reaching the spending cap. All other purchases also earn an unlimited 1%. You can redeem your cash back in any amount, and Discover automatically doubles all cash back earned in the first year.
See our Discover it Chrome Review for more information.
9.74% to 17.99% APR (variable); 4.99% Intro APR for 12 Months; $100 Sign-up Bonus; No Fees
See our PenFed Promise Review for more information. Find out how you can apply for this card here.
14.24% to 24.24% APR (variable); 0% Intro APR on Purchases & Balance Transfers for 21 Months; No Late Fees
See our Citi Diamond Preferred Review for more information.
15.24% to 25.24% APR (variable); 0% Intro APR on Purchases & Balance Transfers for 18 Months; No Late Fees or Penalty APR
See our Citi Simplicity Review for more information.
Most of the cards on this list have variable APRs that fall within a fairly wide range. When you open a new card account, the issuer assigns your APR at a point within that range, based on your creditworthiness and prevailing interest rates at the time. If you have an excellent credit score and unblemished credit history, your rate is likely to be at the lower end of the range. If your credit isn’t stellar, expect a higher rate. As time goes on, your variable APR rises or falls in response to fluctuations in prevailing interest rates and changes in your creditworthiness.
That said, the low-APR credit card scene demonstrates that life really is full of compromises and trade-offs. In exchange for low interest rates and, in many cases, minimal fees, these credit cards dial back the rewards. Most don’t have any credit card rewards at all, though a few – notably Discover it and Discover it Chrome – break the mold.
If you prefer credit cards that actually pay you to spend money, check out our cash back and travel rewards credit card lists. Just remember, rewards credit cards are most effective when you pay off your balance in full each month. Carrying a balance for more than a month or two can completely offset the value of your rewards, and could actually end up costing you money.
What’s your favorite low APR credit card?
Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
Brian Martucci writes about frugal living, entrepreneurship, and innovative ideas. When he’s not interviewing small business owners or investigating time- and money-saving strategies for Money Crashers readers, he’s probably out exploring a new trail or sampling a novel cuisine. Find him on Twitter @Brian_Martucci.
Comments Disclosure: The below responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
6 Best Low APR Interest Credit Cards – Reviews & Comparison
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