How do I choose the best low-interest credit card offer?

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:

1. 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.
2. 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.
3. 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.