What is a good interest rate on a credit card?

Your creditworthiness and financial health play an essential role in the interest rate of your credit card. If you have good credit, your APR (or interest rate) may be lower than if your credit score needs some work. The higher your credit score, the lower your interest rate could be. An easy way to determine whether your card has a desirable interest rate is to take a look at average credit card APRs and see how your rate compares. Currently, anything at or under 16 percent qualifies as a good interest rate for most consumers.

What’s the difference between low-interest cards and 0 percent interest credit cards?

With low-interest credit cards, the ongoing interest rate after any intro APR period is lower than most other credit cards, on average. On the other hand, 0 percent interest credit cards are only zero-interest for a certain time after opening the account, and then the regular APR kicks in, which may or may not be low.

Will credit card companies waive an interest charge?

People make mistakes. Sometimes, we forget to pay a bill, or we miss that grace period by a day. In times of widespread economic uncertainty, credit card issuers are offering assistance more than usual, making it possible to waive an interest charge. The only way to know if your credit card company will allow this is to ask, but make sure to keep your personal credit history in mind as you do. Before you call up your card issuer, review your creditworthiness and financial health. If you do not regularly carry a balance and do not usually pay interest, there is a chance that your issuer may waive the charge. However, if you have a substantial balance, your issuer may be less likely to waive interest or late fees. If this is the case, a balance transfer card may be worth considering to help avoid APR temporarily while you chip away at your debt.

What causes interest rates on credit cards to change?

Credit card interest rates are influenced by the Federal Reserve’s prime rate, and the prime rate changes based on the judgment of federal regulators. Such decisions are largely based on the state of the national economy. If you have an outstanding balance on your credit card, or you tend to carry a balance from month to month, falling interest rates can be welcome news. However, the only sure way to reduce the cost of credit card interest is to avoid it altogether by paying your entire balance each month.

Is a low-interest credit card or cash back card better?

It depends on your goals. If you’re in a good place with your credit or don’t carry debt month-to-month, a cash back credit card can be a great advantage. However, if you want a long-term plan to pay off your debt, a cash back card can distract or tempt you to spend more. In that case, it’s better to use a low-interest credit card.

Best Low-Interest Credit Cards of September 2024

Compare Bankrate’s top low-interest credit cards

Card Name	Variable APR	Best for	Bankrate review score
Wells Fargo Reflect® Card	Intro Offer: N/A Regular APR: 18.24%, 24.74%, or 29.99% Variable APR	Long intro APR offers	4.3 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Wells Fargo's secure site See Rates & Fees
Discover it® Cash Back	Intro Offer: Cashback Match Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. Regular APR: 18.24% - 28.24% Variable APR	Rotating-category cash back	4.4 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Discover's secure site See Rates & Fees
Bank of America® Customized Cash Rewards credit card	Intro Offer: $200 $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. Regular APR: 19.24% - 29.24% Variable APR on purchases and balance transfers	Best for home improvement	4.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Bank of America's secure site
Bank of America® Unlimited Cash Rewards credit card	Intro Offer: $200 $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. Regular APR: 19.24% - 29.24% Variable APR on purchases and balance transfers	Bank of America Customers	3.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Bank of America's secure site
Blue Cash Everyday® Card from American Express	Intro Offer: Earn $200 Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. Regular APR: 18.74%-29.74% Variable	Families	4.6 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on American Express's secure site See Rates & Fees , Terms Apply
Capital One SavorOne Cash Rewards Credit Card	Intro Offer: $200 Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening Regular APR: 19.99% - 29.99% (Variable)	Dining and grocery rewards	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Wells Fargo Active Cash® Card	Intro Offer: $200 cash rewards Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months Regular APR: 20.24%, 25.24%, or 29.99% Variable APR	Large purchases	4.3 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Wells Fargo's secure site See Rates & Fees
Capital One Quicksilver Cash Rewards Credit Card	Intro Offer: $200 Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening Regular APR: 19.99% - 29.99% (Variable)	1.5% cash back	3.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Chase Freedom Unlimited®	Intro Offer: Up to $300 cash back Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases. Regular APR: 20.49% - 29.24% Variable	Flat and bonus cash back rates	4.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chase's secure site
Citi Rewards+® Card	Intro Offer: 20,000 points Earn 20,000 bonus points after you spend $1,500 in purchases with your card within 3 months of account opening; redeemable for $200 in gift cards at thankyou.com. Regular APR: 18.74% - 28.74% (Variable)	Everyday spending	4.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Citi's secure site See Rates & Fees
Gold Visa® Card	Intro Offer: N/A Regular APR: 17.99% Variable APR	Credit union customers

On This Page

What to know about low-interest credit cards

A low-interest credit card is defined by its annual percentage rate (APR), which can be variable or fixed. If the low end of the variable percentage is around 18 percent, it generally qualifies as a low-interest card.

While credit experts agree that paying your balance on time and in full every month is the best way to avoid interest, if you need to carry a balance, a low-interest card could help you pay less interest over time.

Learn more: How is credit card interest calculated?

Comparing credit card interest charges

The best way to sift through your options is to analyze cards using your actual spending or balances. You might be surprised how much these cards can save you compared to a rewards card or cash back card with a high APR.

Here are two of the best low-interest cards compared with a rewards card using average credit card debt statistics from 2023:

Credit card	Credit card APR*	Daily periodic rate	Balance	Interest for a 30-day billing cycle
Chase Sapphire Preferred® Card	21.49%	0.059%	$6,501	$383.56
Capital One SavorOne Cash Rewards Credit Card	19.99%	0.055%	$6,501	$357.56
Wells Fargo Reflect® Card	18.24%	0.050%	$6,501	$325.05

*Using each card’s lowest possible APR.

Dig deeper: The pros and cons of 0 percent APR credit cards

Bankrate Insight

If you're dead set on finding a way to lower your credit card interest rate, contact your issuer. You can call and ask to lower your interest rate or even negotiate a new payment plan entirely. If you've generally been on time with your payments and have been a loyal customer, use those points to make your case. With the right approach, you could be successful in lowering your rate.

Expert advice for choosing a low-interest card

Discover our experts' tips on what to consider when choosing the right low-interest card for you.

Check your credit score: A higher credit score increases your chances of getting a low interest rate. Knowing your credit score and cleaning up any errors before you apply can help you get a low APR.
Calculate debt payoff: Low-interest cards can help people reduce debt, but the goal should be paying it off. Reviewing card terms and APRs can help you forecast your payoff date.
Compare card features: Match features and perks to your spending goals. Some may want a card that earns flat-rate rewards; others may want a card with 0 percent interest intro APR offers.
Consider the long-term value: While having a low interest rate can be great long-term, not every low-interest card maintains great value over time. Make sure that your card has value beyond short-term offers like welcome bonuses and introductory APR offers. Rewards rates, perks and benefits can be a great way to make a card work for you.
Weigh your current debt: How heavy is your current card balance, if any? A balance transfer credit card might be a better fit for you if you want to consolidate card debt instead. Many of the best balance transfer cards have intro offers featuring 0 percent interest on balance transfers.

Still unsure if a low-interest credit card is right for you? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.

What people are saying about low-interest credit cards

As rising inflation remains a concern, many people online are looking for a low-interest credit card. While big-name issuers dominate the market, credit unions are the go-to recommendation for finding a low-interest credit card.

Even Bankrate writer Garrett Yarbrough keeps his credit union card because its interest rate is lower than many other cards’ rates.

“Its greatest strength is one of the main reasons to have a credit union card: the interest rate is far less than the typical APR on a card from a major issuer,” he says. “In fact, my credit union card’s current purchase APR is 12.75 percent variable — much less than the current average interest rate and even the 17 percent to 19 percent minimum APR you see on popular cards nowadays.”

Credit union cards typically don’t have flashy rewards, but their business model allows them to pass savings back to customers at lower rates. But if you want the lowest interest rate possible, be prepared to give up rewards.

“You can get some pretty low rates for credit cards, but they usually are from smaller banks/credit unions and won't offer many rewards,” one r/CreditCards user commented*.

Although online users and Bankrate experts recommend always paying in full and taking advantage of your credit card’s grace period to avoid interest altogether, the right low-interest card can mitigate unavoidable charges.

“I still try to avoid carrying a balance since I don’t want to owe interest or hurt my credit score,” Yarbrough says of his low-rate card. “But my credit union card has definitely saved me money in a pinch before, like on college textbooks while between paychecks and on hefty moving expenses when I needed to stay liquid for a month or two."

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Be sure to check the issuer's website/terms and conditions for all up to date content. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

In the news: Federal Reserve rates stay steady despite slowing inflation

The Federal Reserve has again decided to leave interest rates as is after their July meeting. New projections show that rates may only be cut once this year, while some policymakers are predicting two cuts this year overall. This means that, despite slowing inflation, consumers will continue to see high rates on credit cards, loans, and mortgages.

The best way to combat stagnant rates and high prices is by getting rid of your debt as quickly as possible. By having a low-interest credit card, you guard yourself against a higher-than-necessary interest rate. Plus, some low-interest cards come with balance transfer offers, which can help you save hundreds in interest and give you time to focus on paying down your debt.

Dig deeper: How the Fed affects credit cards

Our data: What’s the average approval rate of low-interest cards?

Around 2 out of 3 adults in the U.S. between 18 and 29 years old had at least one credit card in 2023. And while many credit cards are available for almost any type of person, approval isn’t guaranteed.

We dug into our data and looked at the average approval ratings for Bankrate users applying for credit cards on our site.

According to our proprietary data, Bankrate user approval rate for the low-interest credit cards on our site started at around 64 percent in January 2024, but has steadily declined since. The biggest dips were in spring: in March, only 57 percent of users were approved; April’s approval rates dipped to 54 percent and then dropped to 49 percent in May. This could be due to the anticipation of summer vacations, when cardholders may spend more and have higher balances. However, approval rates increased to 51 percent in June, which shows that approvals may be rising again.

If you want to know which low-interest cards you have the best chance of being approved for, check out Bankrate’s CardMatch tool to get a better idea of your approval odds or see if the issuer offers preapproval for the card you want.

Ask the experts: Is it possible to get a card with a low interest rate if you have bad credit?

Erica Sandberg

Contributor, Credit Cards

There is a strong correlation between the interest rate you are eligible for and your credit score. The higher your credit score is, the better the rate issuers offer you might be. Even if your credit score is poor, however, you won't be charged any interest if you keep the balance to zero. Most cards will give you a 25 to 30 day grace period. It won’t matter how high your interest rate is, issuers won’t charge finance fees as long as you pay your bill in full before or by the due date. The more you do that, your credit score should rise, so if and when you want a new credit card with a low APR, you will be in a better position to qualify.

Frequently asked questions about low-interest credit cards

Your creditworthiness and financial health play an essential role in the interest rate of your credit card. If you have good credit, your APR (or interest rate) may be lower than if your credit score needs some work. The higher your credit score, the lower your interest rate could be.

An easy way to determine whether your card has a desirable interest rate is to take a look at average credit card APRs and see how your rate compares. Currently, anything at or under 16 percent qualifies as a good interest rate for most consumers.
With low-interest credit cards, the ongoing interest rate after any intro APR period is lower than most other credit cards, on average. On the other hand, 0 percent interest credit cards are only zero-interest for a certain time after opening the account, and then the regular APR kicks in, which may or may not be low.
People make mistakes. Sometimes, we forget to pay a bill, or we miss that grace period by a day. In times of widespread economic uncertainty, credit card issuers are offering assistance more than usual, making it possible to waive an interest charge. The only way to know if your credit card company will allow this is to ask, but make sure to keep your personal credit history in mind as you do.

Before you call up your card issuer, review your creditworthiness and financial health. If you do not regularly carry a balance and do not usually pay interest, there is a chance that your issuer may waive the charge.

However, if you have a substantial balance, your issuer may be less likely to waive interest or late fees. If this is the case, a balance transfer card may be worth considering to help avoid APR temporarily while you chip away at your debt.
Credit card interest rates are influenced by the Federal Reserve’s prime rate, and the prime rate changes based on the judgment of federal regulators. Such decisions are largely based on the state of the national economy.

If you have an outstanding balance on your credit card, or you tend to carry a balance from month to month, falling interest rates can be welcome news. However, the only sure way to reduce the cost of credit card interest is to avoid it altogether by paying your entire balance each month.
It depends on your goals. If you’re in a good place with your credit or don’t carry debt month-to-month, a cash back credit card can be a great advantage. However, if you want a long-term plan to pay off your debt, a cash back card can distract or tempt you to spend more. In that case, it’s better to use a low-interest credit card.

How we assess the best low-interest credit cards

100+

card ratings

400+

APRs tracked

3000

data points analyzed

40+

perks evaluated

When evaluating the best balance transfer and low-interest cards, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that fit the priorities of a diverse group of cardholders.

This includes users who need to carry a balance long term, need as much time as possible to chip away at debt or are looking for maximum long-term value via rewards.

We analyzed over 100 of the most popular balance transfer and low-interest cards and scored each based on its introductory APR, intro APR period length, ongoing APR, balance transfer fee, perks and more to determine whether it belonged in this month’s roundup.

Here’s a quick look at how our rating methodology breaks down for low-interest cards:

Overall Score

Intro APR and offer length for new purchases 40%
Ongoing APR 35%
Intro APR and offer length for balance transfers 13%
Balance transfer, annual and other fees 12%

The primary factor in a balance transfer or low-interest card’s rating and its inclusion in our list is the quality of its introductory APR offer and ongoing APR. This includes both the introductory rate itself and the length of the intro APR on both balance transfers and new purchases.

For cards designed primarily for balance transfers, the intro APR offer on balance transfers has the largest impact on overall score. The quality of these cards’ intro APR on new purchases is also considered, but holds less weight than the intro APR on balance transfers.

For general low-interest cards, the intro APR offer on new purchases has the largest impact on overall score, followed by the ongoing APR and intro APR offer on balance transfers. This weighting assumes cardholders considering a card in this category will prioritize payment flexibility on new purchases or may need to carry a balance long term, whereas cardholders trying to pay off debt will opt for a dedicated balance transfer card.

The cards that score the highest in these categories and are most likely to be included in our list tend to offer long 0 percent intro APRs on both balance transfer and new purchases as well as a lower-than-average low-end APR.
Along with evaluating each card’s intro APR offers, we score balance transfer and low-interest cards based on their fees.

Of primary importance is a card’s balance transfer fee, since this can play a large role in the total cost of a balance transfer. We rate each card’s balance transfer fee based on how it stacks up against the fee you’ll find on competing cards.

While this fee carries less weight when we assess general low-interest cards than dedicated balance transfer cards, it still factors into our evaluation since cardholders may decide to transfer debt to a low-interest card even if it offers no intro APR or an intro APR higher than 0 percent.

And while a lower balance transfer fee could save you more overall than a few extra months of 0 percent intro APR, this fee carries less weight in our scoring system than a card’s introductory APR and intro APR period. This is because many users prioritize getting as much time as possible to pay off debt while avoiding interest.

Other fees considered in our assessment include the presence of annual, foreign transaction, cash advance and late payment fees, along with penalty APRs. Annual fees are weighted most heavily since these are the only “unavoidable” fees in the list and tend to be less common on dedicated balance transfer and low-interest credit cards.
While getting a generous intro APR offer and low ongoing APR are likely to be the biggest priorities for someone looking for a low-interest or balance transfer card, we also consider how much value a card can offer after its intro APR comes to an end.

Balance transfer and low-interest cards receive a higher rating and are more likely to be included in our list of best cards if they also include an ongoing rewards program or unique and valuable perks. Such features make a card more useful long term and make it less likely you’ll need to apply for a new card (and temporarily hurt your credit score) after you pay off debt.

With this in mind, our best cards list often includes a number of rewards and cash back cards alongside dedicated balance transfer cards. These cards tend to offer slightly shorter intro APR periods, but could help you save more overall, either via rewards earned on everyday spending, valuable perks or a lower balance transfer fee.

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.
1. How is credit card interest calculated? Debt.org. Accessed on July 23, 2024.

India Davis Editor, Credit Cards

India Davis is an editor specializing in credit cards and updates. She believes in putting the reader first and carrying out a brand’s voice to its fullest potential. She has…

Courtney Mihocik Senior Editor, Credit Cards

Courtney Mihocik is an editor at Bankrate Credit Cards and CreditCards.com specializing in credit card news and personal finance advice. Previously, she led insurance content at…

* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.

Editorial Disclosure: Opinions expressed here are the author’s alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.

Best low-interest credit cards for September 2024

+ Show Summary

Wells Fargo Reflect® Card

Discover it® Cash Back

Bank of America® Customized Cash Rewards credit card

Bank of America® Unlimited Cash Rewards credit card

Blue Cash Everyday® Card from American Express

Capital One SavorOne Cash Rewards Credit Card

Wells Fargo Active Cash® Card

Capital One Quicksilver Cash Rewards Credit Card

Citi® Diamond Preferred® Card

Chase Freedom Unlimited®

Citi Rewards+® Card

Gold Visa® Card