Are there any low fixed interest credit cards?

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
• Decide what you need to do with your low interest credit card
• Apply for the card that best suits your credit score and your needs

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.

A variable interest rate on a credit card is an interest rate that goes up and down with the index rate it’s tied to, which is most often the Prime Rate. The Prime Rate is the interest rate banks give to the most creditworthy borrowers. The Prime Rate goes up and down, too, usually based on adjustments to the Federal Funds Rate, which changes based on the economic climate. Most credit cards today have a variable interest rate, which is sometimes signified by a "(V)" next to the card's APR .… read full answer

Here is what you need to know about variable interest rates on credit cards:

What they are: Variable interest rates are interest rates based on the banking system's fluctuating rate, usually in accordance with the Prime Rate.

How they fluctuate: Variable interest rates change as often as the Federal Funds Rate changes. In a growing and healthy economic climate, the Federal Reserve will usually raise rates. In an economic downturn, they’ll lower rates. In normal economic periods, changes to the Federal Funds Rate happen in small increments - half a percent here and there - over a span of years.

When the economy is in trouble, however - such as during the 2008 financial crisis or the COVID-19 pandemic - the rate may be changed quickly and significantly. The Prime Rate will change according to the Federal Funds Rate, and that change will eventually reflect on any variable interest rate credit cards. Credit card companies have been known to raise the margin they add to the Prime Rate in order to keep rates high for new offers, however.

Fixed vs. Variable credit card interest rates

The alternative to a variable interest rate is a fixed interest rate - an interest rate that doesn’t change with any index rates. But fixed interest rate credit cards are virtually nonexistent these days, mostly due to the rules set in place by the CARD Act, which stipulates that card issuers can’t change their interest rates whenever they want. Because of the law, fixed interest rate credit cards wouldn’t be very lucrative to credit card companies in a changing economy.

If you're looking for a low interest credit card to finance your purchases, feel free to also check out some of the best 0% intro APR credit cards. But keep in mind that once the introductory rates are over, your remaining balance will be subject to the regular APR.

A good interest rate on a credit card is 14% and below. That is roughly the average regular interest rate on credit cards for people with excellent credit. Even a relatively good interest rate on credit cards for people with lower scores is not all that low. For example, credit card users with good or fair credit could pay interest at an annual rate of 20%+ and still have a below-average APR. Better-than-average for a credit card overall isn’t much below 20%, either. That’s why the best interest rate on a credit card is 0%.… read full answer

How to Get a Good Interest Rate on a Credit Card

There are three ways to get the best possible credit card interest rate.

For starters, lots of credit cards offer 0% APR periods as introductory perks for new customers. They can be a great help to people looking to finance a large purchase or transfer a debt to pay it off faster. But those intro periods are always temporary. Most (but not all) 0% APR credit cards require good credit or better, too.

The second way to avoid credit card interest altogether is to pay your full statement balance by the due date every billing period. Setting up automatic monthly bill payments from a bank account can be a big help with that. You can also try the “Island Approach”, which is a method of using multiple credit cards for different expenses. For example, you could use your lowest-rate card—maybe even a card with a 0% APR period—for things you’ll need to pay off over a period of time, and a rewards card for everyday purchases that you pay off every month. That way, you wouldn’t pay interest at all, no matter what rate you have on the rewards card.

Ultimately, there is also a number of things you can do to raise your credit score and, in turn, get a better shot at a good interest rate on your next credit card. Because if a low credit card APR is your objective, it truly pays to have an “excellent” credit score of 750 or higher.