To choose the best low-interest credit card offer, start by checking your credit score. Credit cards with low interest rates typically require good or excellent credit for approval. Next, decide what you will use your low interest credit card for – everyday spending, a big purchase or a balance transfer. That will tell you what type of credit card interest rates to focus on.
How to Choose a Low-Interest Credit Card:
If you want to reduce the cost of existing debt, focus on the balance transfer APRs – both introductory and ongoing – as well as balance transfer fees when comparing credit card offers.
If you want to finance a large purchase with the new card, apply for a general-purpose credit card that has a 0% APR period on purchases. Many cards offer at least 12 months of no interest. It’s much better than deferred interest, which is a feature of many store credit cards.
If you want a card that won’t charge much interest on the rare occasion you carry a balance, there are some credit cards that offer rates below 12% to people with good or excellent credit. But it’s still best to pay off everyday expenses in full each month, so it might be worth using the Island Approach, i.e. multiple credit cards that work for different types of purchases.
Whatever reason you have for seeking out a low-interest credit card, it’s important to remember that carrying a balance on a credit card can be a slippery slope, even at a low interest rate. And if you have a 0% APR credit card, don’t wait until the end of the intro period to figure out how to pay off your balance. Use a credit card payoff calculator to plan your payment amounts ahead of time.
To get a low interest credit card, start by checking your credit score and figuring out how long you expect to need a low interest rate for, in addition to why you need it. Low interest credit cards usually require good credit or better, and low rates are available for new purchases as well as balance transfers.… read full answer
How to Get a Low Interest Credit Card
Check your credit score. To get a 0% APR credit card, whether for purchases or balance transfers, you’ll generally need good credit or better. And as a rule of thumb, the best credit scores get the lowest regular APRs.
Decide what you need to do with your low interest credit card. If you’re looking to finance a large future purchase, you’ll do best with a card offering 0% on purchases. A 0% APR balance transfer card will work better if you have existing debt. And a card with a low regular interest rate is best for people who don’t know when they’ll need to carry a balance but want a safety net that won’t break the bank in interest charges.
Apply for the card that best suits your credit score and your needs. Make sure you research (and meet) the card’s approval requirements before you apply.
Other Things to Consider When Shopping for a Low Interest Credit Card
You likely won’t know your regular interest rate until you’re approved. Most credit cards advertise their regular APRs as a range: 15% - 25% (V), for example. That means your assigned rate could be as low as 15%, as high as 25%, or somewhere in between. And the “(V)” indicates the rate could change over time as economic conditions evolve.
The exact interest rate you’re given (from within the advertised range) will depend on your credit history, income, and debt – your overall creditworthiness. Unless you apply for a card that has a set regular APR, rather than one advertised as a range, you won’t know exactly what regular APR you’ll get until your application is accepted. As a result, it’s best to consider both the high and low ends of the range when comparing credit card rates, even if you have good credit.
Using a 0% APR period to pay off debt is usually not free. If you have existing debt and need a break on interest to pay it down faster, the best option is usually a 0% balance transfer credit card. But most 0% APR balance transfer credit cards charge a balance transfer fee, which is a percentage of the amount you transfer. In this case, a balance transfer isn’t totally free. Cards with no balance transfer fee and 0% APR periods do exist, but they’re not common.
A 0% APR period will likely become a high regular rate. A no-annual-fee credit card with a 0% APR intro period on purchases is a great way to finance a big purchase for free. The intro period will allow you to pay off a hefty purchase without paying an extra dime, as long as you pay it off before the intro period ends. After that, the card’s regular interest rate will apply to any remaining balance, and regular rates tend to be pretty high on 0% intro APR cards.
Having a low interest credit card as a safety net isn’t a bad idea. If you want a low interest credit card just in case of emergency, look for a card with a low regular APR range or a single low rate listed.
Your existing APR may be open to negotiation. If you already have a high-APR credit card, and you don’t particularly need a 0% APR period, a better option might be to try calling your credit card company’s customer service line to ask for a lower regular rate. If you make a good case, citing your good and/or long history with your card and the company, you may get offered a lower interest rate. You will have better luck if your credit situation has improved since you applied for the card, too.
Hi! Yes! It is definitely worth calling and asking them. You may need to make more than one call until you get a person who has the authority to make that change, but it can't hurt to call and ask. I'd do a bit of research first to see what the interest ranges are that the credit card company operates in so that you know where you might fall. You could also send an email or letter to ask.… read full answer
You also might want to see if there is a format or form provided online by your credit card company to request a lowered interest rate – that site will provide specific information to help you succeed in your request.
I feel as if it never hurts to ask for discounts and good deals. Many of us shy about doing this - I often am - but if you can get your courage up and try, you may be successful. Good luck to you!
Finding the right credit card can be stressful, with so many offers to consider and so much jargon and fine print to decipher. But as long as you follow these simple pointers, you’ll be fine.
Compare credit cards before applying. Otherwise, there’s no way of telling whether you’re getting the best deal. Marketing can be deceiving, after all. … read full answer
Make sure your credit is match. You should only consider applying for a credit card if it matches your credit standing. For example, don’t apply for an excellent-credit credit card if you have fair credit. Getting turned down will only make it harder to get approved the second time around.
Don’t apply in bulk. You should not submit more than a couple credit card applications within a short period of time, as this can lead to a roughly six-month dip in your credit score.
For more tips, check out WalletHub’s guide on finding the right type of credit card for your needs. And for your convenience, here are some benchmarks to consider as you wade your way through the credit card comparison process:
Market Snapshot: 1,000+ Credit Card Offers
You can learn more about the average terms offered by credit cards in popular categories from WalletHub’s latest Credit Card Landscape Report.
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