Low Interest Credit Cards

Fixed low interest 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.

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.

Interest rates vary by card, and no issuer has a reputation for offering low rates across the board. So you should focus on finding the best deal, regardless of issuer.

After all, the biggest differences between credit card companies are in terms of customer service and product features. And while customer service is important, it should only be used as a tiebreaker between cards with equally attractive terms.

With that being said, here’s how the largest credit card issuers ranked in WalletHub’s latest Customer Satisfaction Report:

1. Discover
2. American Express
3. Capital One
4. Chase
5. Bank of America
6. Wells Fargo
7. Citi

When asking for a lower APR on your credit card, persistence is key. Your request may not be granted after the first call. There’s no guarantee, but it certainly never hurts to call back later, and to ask to speak with a supervisor. However, you will need a legitimate reason in order to be successful. Before calling your card’s customer service number to make your request, there are certain steps you can take to maximize your chances of approval.

First of all, make sure that your payment history with your credit card company has been consistent for at least six months. This way, you can point to your history of being a good customer when speaking to the representative. Make sure you check your credit, as well – you can do that for free by signing up for a WalletHub account.

If you find that it is less than optimal and did not improve much since you opened your account, try to enhance your credit score before asking for a lower APR. An increase in your credit score will signal to your lender that you are more likely to repay what you owe, so they may be more willing to meet your requests.

Lastly, do your homework. Know your current credit card terms, and research and compare credit card terms and rates from numerous companies. This will give you more bargaining power when you make the call. If you do not succeed in lowering your APR, you could consider applying for a balance transfer card. A credit card with a 0 percent introductory APR offer for balance transfers is a great alternative to saving money on your debt repayment.

Hope this helps!

The importance of a low interest rate depends on your payment habits. For example, if you always pay your bill in full, your credit card interest rate simply doesn’t matter. And getting a low interest credit would likely force you to sacrifice a lot of rewards value. Still, some people who always pay in full wind think they need such a card in case they forget to pay on time one month. But if you have a pristine payment record, credit card companies will almost always refund any finance charges associated with a single slip-up. So this is a moot point.

Low interest rate credit cards can help people who consistently carry a balance from month to month or have a big-ticket purchase coming up. But would be even better since your full monthly payment will go toward the principal balance, instead of some of it being wasted on finance charges. That said, a low interest card is truly important if you occasionally revolve a balance. Your credit card company won’t give you the benefit of the doubt more than once, and a 0% credit card will not provide the long-term solution that you need.

Credit card interest rates can be as low as 0%, but only for a limited time. On the other hand, interest rates can pretty much go as high as consumers are willing to pay. That’s largely because there is no national usury law and most credit card companies operate under charters that allow them to be federally regulated.

The highest interest rate among current credit card offers is 36% (First Premier), according to WalletHub’s database of 1,000+ cards. But we’ve seen rates as high as 49.9% in the past. And if you become at least 60 days delinquent, a penalty interest rate – 26.16%, on average – will take effect. That would certainly limit the savings available from even the best low interest credit cards.

Finally, it’s also important to note that usury laws do exist at the state level. So if you are getting a credit card from a local bank, there might be an interest rate ceiling.

I chose my current credit card, the Capital One Quicksilver because even after the initial period, the APR only jumps to a reasonable range. I sometimes don't pay off the entire balance and the APR really makes a difference if this happens regularly. The other features of the cards are similar to other cards. Fees and customer service is comparable to cards from major banks. I would really like it if the APR would be lowered as a reward for not carrying a balance over a long period of time.

The best low APR credit card for no credit is the BankAmericard Student card because it has introductory APRs of 0% for 15 months on purchases and 0% for 15 months on balance transfers. The regular APR is 14.74% - 24.74% (V), based on creditworthiness. Even more importantly, the BankAmericard Student card has no annual fee.

Most credit cards for people with no credit history have high interest rates. That’s especially true of non-student cards. It’s best not to rack up debt while you’re building credit anyway.

The Wells Fargo Platinum is the first that comes to mind when talking about credit cards with low interest rates and no annual fees.

It offers offers 0% for 18 months on new purchases and 0% for 18 months on qualifying balance transfers - 6-7 months longer than average, depending on the type of transaction. The regular APR can be anywhere between 17.74% - 27.24%, based on your creditworthiness.