If you’re the type of credit card user who rolls a balance from month to month, a low interest credit card is essential. No longer will you find credit cards with 5% APR, but you also don’t have to settle for 34.99%.
Many of these low interest cards aren’t just low interest, either. They come with other benefits that make them very advantageous. Some offer a cash back bonus or ongoing rewards, which is great. Others offer a balance transfer arrangement, which is helpful if you’re trying to get out of debt faster by carrying less interest.
These low interest cards are great options for any credit card user, but they’re particularly useful if you’re planning a big purchase that will take a few months to pay off.
1. Discover it® Cashback Match™ with No annual fee
The Discover it® Cashback Match™ with No annual fee (yes, that’s the card’s full name) is a particularly good option if you’re looking to make a large purchase, and then pay it off in a few months. Right now, it offers 0% introductory APR on purchases and balance transfers for 12 months. So for credit card users with good credit, this is an excellent low interest option.
Cash Back Rewards: With the card, you’ll get 5% cash back in rotating categories, up to a particular limit each quarter. Plus, the card offers 1% cash back on all other purchases. And as the name suggests, Discover will double your cash back at the end of the first year if you’re a new cardmember.
Easy to Redeem: Discover focuses on making the cash back rewards easy to redeem. You can redeem any amount at any time as a statement credit or a deposit to your bank account. Or, you can use the cash back rewards to pay for purchases from Amazon®.
Added Security Features: If you are concerned about credit theft, this is a good card option. It offers free access to your FICO® Credit Score, including alerts and reminders. Your score will come in monthly on your statement, but you can also access it any time through your online account.
No Annual Fee: The card comes with no annual fee.
Bottom Line: The Discover it® Cashback Match™ with No annual fee is an excellent option if you’re looking for solid cash-back rewards and a decent overall APR.
2. Chase Freedom®
The Chase Freedom® card offers 0% introductory APR for 15 months on purchases and balance transfers. This is a great card for a big purchase up front, since it offers a $150 bonus after you spend $500 on purchases within three months of opening your account. You can get another $25 bonus by adding an authorized user within 3 months of your account opening.
Cash Back Rewards: This card also offers 5% cash back rewards in rotating categories year-round. Then, you’ll get unlimited 1% cash back on all other purchases. You can also use the online Shop through Chase® program to earn a cash back boost.
Balance Transfers: You can transfer a balance to this card to take advantage of the 0% introductory APR. But the balance transfer fee is 5% of the amount transferred, minimum $5.
No Annual Fee: This card has no annual fee, so you don’t need to worry about that sneaking up on you.
Bottom Line: The Chase Freedom® card is a goad card with generally low interest and excellent bonuses.
3. The Amex EveryDay® Preferred Credit Card from American Express
Right now this card combines excellent bonus rewards, everyday rewards, low fees, and a very reasonable interest rate. Start by earning 15,000 Membership Reward® points after you use your new Card to make $1,000 in purchases within the first 3 months. Then you earn 50% more points when you make 30 or more purchases with your card in a billing period and get 50% extra points on those purchases less returns and credits. There is a $95 annual fee for this card.
Bonus Rewards: Earn 15,000 Membership Reward® points after you use your new Card to make $1,000 in purchases within the first 3 months. Earn 50% more points: Make 30 or more purchases with your Card in a billing period and get 50% extra points on those purchases less returns and credits. Terms and limitations apply.
Everyday Rewards: 3x points at US supermarkets on up to $6,000 per year in purchases (then 1x); 2x points at US gas stations; 1x points on other purchases. Terms and limitations apply.
Annual Fee: $95
Bottom Line: This card is one of the most rewards cards with reasonable rates and fees available today. Get more details here.
4. Capital One® VentureOne® Rewards Credit Card
This card is obviously one that features travel rewards. However, if you can qualify, it also offers relatively low APR. You can also take advantage of a 0% APR introductory rate for 12 months on purchases, and there is no annual fee.
Travel Rewards: If you want a card that offers both low interest and travel rewards, this is a great bet. Get 1.25X miles – unlimited. So that’s 1.25 airline miles per $1 spent on any purchase. You’ll also get a one-time bonus of 20,000 when you spend $1,000 in purchases within the first three months.
Easy to Redeem: The rewards you rack up with this card don’t expire. You can use them for flights, hotel stays, car rentals, cruises, and other travel-related expenses. And you don’t have to worry about frustrating blackout dates when you can’t use your rewards.
No Transfer Fee: Unlike the other cards on this list, this one doesn’t offer 0% introductory APR on transfers. However, it doesn’t have a transfer fee. So depending on how quickly you pay down the balance, that could be a valuable perk.
No Annual Fee: You’ll pay $0 in annual fees with this card.
Bottom Line: The Capital One® VentureOne® card is a great option if you want to combine good APR with travel rewards. Get more details on this card here.
5. Barclaycard® Ring MasterCard®
This card has an interesting twist – it’s crowdsourced. Barclaycard® has created a forum where card holders can get together to decide what benefits to add to the card. It offers a very low interest rate, no balance transfer fee, no annual fee, and some good cash back rewards. And card users can put in their input for how to change the card to make it even better.
Low Interest Rate: This card offers a low 8.25% variable APR on balance transfers and purchases.
Giveback: Essentially, the credit card’s books are open to users, so you can see how your choices – and the choices of the community – can affect the card’s bottom line. When the card does well, you can share in the profits through the Giveback program. You can use Giveback money as a statement credit, or choose a charity to donate to.
1% Cash Back on Transfers: This card gets even better if you’re looking for a balance transfer. You’ll actually get 1% cash back on transfers (rather than paying the standard 1-3% fee!).
No Annual Fee: You can save money with this card because it offers no annual fee – ever.
Bottom Line: If you have great credit, this could be a great card to keep around for big-ticket purchases that you want to finance. We don’t recommend this approach for everything, of course. But if you’re planning to carry a balance purposefully – or trying to pay off a balance on a high interest card – the Barclaycard® Ring MasterCard® is a great option. Get more details on this card here.