Low Interest Credit Cards

Low fixed-rate credit cards are basically extinct. And there’s a fairly simple reason for that. Credit card companies lost the ability to change interest rates whenever they want when the CARD Act took effect in February 2010. In fact, they can only raise rates on existing consumer-card balances when the accountholder becomes 60+ days delinquent. The law does not cover small business credit cards.

As a result, credit card companies now use variable interest rates, which change based on a benchmark such as the Prime Rate, to make sure their offers keep pace with the broader economic climate.

Of course, introductory interest rates are an obvious exception to this rule, since they have a set expiration date.

The highest credit card interest rate in recent memory was 79.9% on a card offered by First Premier Bank in 2010. That offer’s not available anymore. The current highest credit card interest rate is 36%. That’s on the new First Premier Credit Card. The next highest credit card interest rate seems to be 29.99%, charged by the Total Visa Credit Card and the First Access Visa. These rates are very high when you consider that the average interest rate is only around 19%.

Legally, there actually is no highest credit card interest rate that’s possible. Credit card companies are allowed to charge any interest rate. But they must clearly state what that rate is in the card’s terms and conditions. And companies that would like to charge outrageous interest rates are limited by what people are actually willing to pay. You should always make sure you know a card’s interest rate before applying. Otherwise, it may come as a nasty surprise.

Here are the highest credit card interest rates:

• Highest historical credit card interest rate: 79.9% on the old First Premier Bank Credit Card. This card is no longer available. It was for people with bad credit.
• Highest current credit card interest rate: 36% on the new First Premier Bank Credit Card. The card is unsecured and for bad credit. It has an annual fee of $75 - $125 for the first year and $45 - $49 after. Plus, there’s a $95 one-time processing fee.
• High current credit card interest rate: 29.99% on the Total Visa. The card is for bad credit. It has an annual fee of $75 for the first year and $48 after. It has an $89 one-time processing fee.
• High current credit card interest rate: 29.99% on the First Access Visa. This card is for bad credit. It has an annual fee of $75 for the first year and $48 after. It has an $89 one-time processing fee.

As you can see, the highest credit card interest rates are found on cards for people with bad credit. The better your credit is, the better your chance of getting a lower interest rate. But don’t forget that no matter how high or low your interest rate is, it will never affect you unless you carry a balance between months. If you always pay off your bill in full, you’ll never pay any interest unless you take out a cash advance. So if you don’t spend beyond your means, interest rates shouldn’t be a huge consideration when you’re picking a credit card.

But if you’re not confident about your ability to pay in full, you should prioritize low interest rates in your search. Many cards will even offer you 0% interest for a number of months to start. But you’ll usually need at least good credit to get a 0% intro APR.

An APR on a credit card basically shows how much interest a balance will accrue over the course of a year. For example, a $1,000 balance on a card with a 25% APR would grow to about $1,250 in 12 months.

The APR on a credit card is not its interest rate, however. When you carry a balance from month to month, interest is assessed on a daily basis. A credit card’s interest rate is therefore its APR divided by 365 (days in a year). So a card with a 25% APR charges interest at a 0.068% daily rate. Furthermore, given that interest charges from one day become part of the balance accruing interest the next day, your effective APR (EAPR) will always be a bit higher than the advertised, or nominal, APR. For example, the effective APR on a card with a 25% nominal APR would be about 28.39%.

You can read more about credit card APRs and how interest works from WalletHub’s guides on the topics.

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.

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!

You can consider a low rate credit card to be an offer with a regular APR below the market average for your credit standing. Here are the current averages for each credit tier, according to WalletHub’s latest Credit Card Landscape Report:

1. Excellent Credit: 14.19%
2. Good Credit: 19.88%
3. Fair Credit: 22.41%
4. Bad Credit (Secured): 19.17%
5. All Credit Card Offers: 19.05%

With that being said, credit card rates are never all that low compared to mortgage and auto loan rates. Except when a 0% intro rate is available, that is.