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.
Table of Contents:
1. Chase Freedom
The Chase Freedom 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 $200 bonus after you spend $500 on purchases within three months of opening your account.
- 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 3% of the amount transferred for the first 60 days, minimum $5. After the first 60 days, transfer fee goes up to 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 is a good card with generally low interest and excellent bonuses.
2. 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 $0 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 miles 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 Annual Fee: You’ll pay $0 in annual fees with this card.
Bottom Line: The Capital One® VentureOne® Rewards Credit Card is a great option if you want to combine good APR with travel rewards. Get more details on this card here.
3. Upgrade Card
The Upgrade Card is a credit card with a special twist: you can make your monthly payments at a fixed interest rate and with equal monthly payments. That will keep you out of the revolving credit arrangement that leaves so many consumers trapped in credit card debt practically for life!
If you have good or excellent credit, you can lock in your rate on the low end of the 6.99% to 29.99% APR range. After all, there aren’t too many credit cards offering single digit interest rates these days, despite low rates virtually everywhere else. You’ll need between fair and excellent credit and the card is good anywhere Visa is accepted.
- High Credit Limit: The maximum credit limit is $50,000. However, they indicate the majority of applicants will have a credit limit of $20,000 or less. Still, that’s a lot higher than the credit limits offered on most credit cards.
- No fees: There are no annual fees, balance transfer fees, cash advance fees, late fees, return payment fees or foreign transaction fees. About the only cost you’ll have in connection with the Upgrade Card is the interest rate charged on the credit line. You can even pay the card off early with no prepayment penalties. Bonus: there is no penalty APR if you make a late payment.
- Payoff Your Balance Faster: Though the Upgrade Card is set up as a line of credit, it comes with a fixed payment term, ranging from 24 months to 60 months. No matter how much you borrow, you’ll have the balance paid off in five years or less.
Bottom Line: The Upgrade Card is a great option if you have good or excellent credit and want a low APR, with no fees whatsoever, as well as the ability to pay your balance off completely in just a few years.
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