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Best Low-Interest credit cards for June 2024

Updated June 03, 2024

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Paying your credit card bill in full each month will allow you to avoid interest entirely, but we know that's not always possible. If you sometimes carry a balance, a low-interest credit card can help you save money and pay down your balance more quickly. To see how much you can save with a low-interest credit card, use our credit card interest calculator. Then, check out our recommendations for the best low-interest credit cards from our partners.

Best for long intro APR offers

Bankrate score

Rating: 4.3 stars out of 5
4.3
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Wells Fargo's secure site

Purchase intro APR

0% intro APR for 21 months from account opening

Regular APR

18.24%, 24.74%, or 29.99% Variable APR

Intro offer

Info

N/A

Rewards rate

Info

N/A

Best for rotating-category cash back

Bankrate score

Rating: 4.4 stars out of 5
4.4
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Discover's secure site

Purchase intro APR

0% for 15 months

Regular APR

18.24% - 28.24% Variable APR

Intro offer

Info

Cashback Match

Rewards rate

Info

1% - 5%

Best for home improvement

Bankrate score

Rating: 4.3 stars out of 5
4.3
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Bank of America's secure site

Purchase intro APR

0% Intro APR for 15 billing cycles for purchases

Regular APR

19.24% - 29.24% Variable APR on purchases and balance transfers

Intro offer

Info

$200

Rewards rate

Info

1% - 3%

Best for Bank of America customers

Bankrate score

Rating: 3.8 stars out of 5
3.8
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Bank of America's secure site

Purchase intro APR

0% Intro APR for 15 billing cycles for purchases

Regular APR

19.24% - 29.24% Variable APR on purchases and balance transfers

Intro offer

Info

$200

Rewards rate

Info

1.5%

Best for families

Bankrate score

Rating: 4.6 stars out of 5
4.6
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on American Express's secure site
See Rates & Fees , Terms Apply

Purchase intro APR

0% on purchases for 15 months

APR

19.24% - 29.99% Variable

Intro offer

Info

Earn $200

Rewards rate

Info

1% - 3%

Best for dining and grocery rewards

Bankrate score

Rating: 5 stars out of 5
5.0
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Capital One's secure site

Purchase intro APR

0% intro on purchases for 15 months

Regular APR

19.99% - 29.99% (Variable)

Intro offer

Info

$200

Rewards rate

Info

1% - 8%

Best for large purchases

Bankrate score

Rating: 4.3 stars out of 5
4.3
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Wells Fargo's secure site

Purchase intro APR

0% intro APR for 15 months from account opening

Regular APR

20.24%, 25.24%, or 29.99% Variable APR

Intro offer

Info

$200 cash rewards

Rewards rate

Info

2%

Best 1.5% cash back card

Bankrate score

Rating: 3.8 stars out of 5
3.8
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Capital One's secure site

Purchase intro APR

0% intro on purchases for 15 months

Regular APR

19.99% - 29.99% (Variable)

Intro offer

Info

$200

Rewards rate

Info

1.5% - 5%

Best for flat and bonus cash back rates

Bankrate score

Rating: 4.8 stars out of 5
4.8
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Chase's secure site

Purchase intro APR

0% Intro APR on Purchases for 15 months

Regular APR

20.49% - 29.24% Variable

Intro offer

Info

Up to $300 cash back

Rewards rate

Info

1.5% - 5%

Best for everyday spending

Bankrate score

Rating: 4 stars out of 5
4.0
Info
Recommended credit score: 670 - 850
Info
Apply now Lock
on Citi's secure site

Purchase intro APR

0% intro for 15 months on Purchases

Regular APR

18.74% - 28.74% (Variable)

Intro offer

Info

20,000 points

Rewards rate

Info

1X - 5X

Best credit union card

Image of Gold Visa® Card

Gold Visa® Card

*
Recommended credit score: 670 - 850
Info

Intro offer

Info

N/A

Rewards Rate

Info

N/A

Annual fee

$0

Regular APR

17.99% Variable APR

Compare Bankrate’s top low-interest credit cards

Card Name Variable APR Best for Bankrate review score
Intro Offer: N/A
Regular APR: 18.24%, 24.74%, or 29.99% Variable APR

Long intro APR offers

4.3 / 5

Info
(Read card review)
Apply now Lock
on Wells Fargo's secure site
Intro Offer: Cashback Match
Info
Regular APR: 18.24% - 28.24% Variable APR

Rotating-category cash back

4.4 / 5

Info
(Read card review)
Apply now Lock
on Discover's secure site
Intro Offer: $200
Info
Regular APR: 19.24% - 29.24% Variable APR on purchases and balance transfers

Best for home improvement

4.3 / 5

Info
(Read card review)
Apply now Lock
on Bank of America's secure site
Intro Offer: $200
Info
Regular APR: 19.24% - 29.24% Variable APR on purchases and balance transfers

Bank of America Customers

3.8 / 5

Info
(Read card review)
Apply now Lock
on Bank of America's secure site
Intro Offer: Earn $200
Info
Regular APR: 19.24% - 29.99% Variable

Families

4.6 / 5

Info
(Read card review)
Apply now Lock
on American Express's secure site
See Rates & Fees , Terms Apply
Intro Offer: $200
Info
Regular APR: 19.99% - 29.99% (Variable)

Dining and grocery rewards

5.0 / 5

Info
(Read card review)
Apply now Lock
on Capital One's secure site
Intro Offer: $200 cash rewards
Info
Regular APR: 20.24%, 25.24%, or 29.99% Variable APR

Large purchases

4.3 / 5

Info
(Read card review)
Apply now Lock
on Wells Fargo's secure site
Intro Offer: $200
Info
Regular APR: 19.99% - 29.99% (Variable)

1.5% cash back

3.8 / 5

Info
(Read card review)
Apply now Lock
on Capital One's secure site
Intro Offer: Up to $300 cash back
Info
Regular APR: 20.49% - 29.24% Variable

Flat and bonus cash back rates

4.8 / 5

Info
(Read card review)
Apply now Lock
on Chase's secure site
Intro Offer: 20,000 points
Info
Regular APR: 18.74% - 28.74% (Variable)

Everyday spending

4.0 / 5

Info
(Read card review)
Apply now Lock
on Citi's secure site
Image of Gold Visa® Card
Gold Visa® Card
Intro Offer: N/A
Regular APR: 17.99% Variable APR

Credit union customers

What’s a low-interest credit card?

A low-interest credit card is defined by its APR (annual percentage rate), which can be either variable or fixed. If the low end of the variable percentage is around 18 percent, it generally qualifies as a low-interest card. Most credit cards are variable-rate credit cards, meaning their APRs fluctuate alongside the prime rate.

Paying your balance on time and in full every month is the surest way to avoid interest altogether, and this method is what we recommend first. Alternatively, a low-interest card could help you pay less interest if you carry a balance.

Understanding your card’s interest rate

Although annual percentage rates are expressed on a yearly basis, your lender will charge you each month you carry a credit card balance. It can appear fairly straightforward at first glance, but understanding how that percentage applies to your current balance requires some calculations. For example, if your average daily balance for the billing cycle was $500 and your card’s APR is 15 percent, you’ll find that you owe $6.25 in interest for the month. The formulas are as follows:

Credit card APR ÷ 365 days = Daily periodic rate

(Previous cycle’s unpaid balance + Total purchases) ÷ Number of days in billing cycle = Average daily balance
Daily periodic rate x Average daily balance x Number of days in billing cycle = Total interest charge for the month

Credit card APR Daily periodic rate Average daily balance Total interest charge for the month
15% 0.041% $500 $6.16

How much could you save with a low-interest card?

One Bankrate survey found that 49 percent of cardholders were “debt revolvers” in 2023. As credit card APRs steadily climb, intentionally picking a card with a below-average interest rate could give your wallet a bit of a break. 

Current credit card interest rates

Unlike a card with a zero percent intro APR offer, you won’t completely skip interest if you carry a balance on a low-interest card. However, you could still save more than you would with a card that has a high interest rate. Here’s an example of how much interest you’d pay on a card with an 18 percent interest rate versus a balance on a card with an interest rate at the current average of around 20 percent.

Credit card APR
Daily periodic rate
Average daily balance
Total interest charge for the month
18% 0.049% $500 $7.39
20% 0.054% $500 $8.22

Pros and cons of low-interest credit cards

Pros

  • Checkmark

    You’ll save on interest: Lower-than-average interest rates mean that if you carry a credit card balance, you won’t incur as much in interest charges.

  • Checkmark

    You can save on existing credit card debt: By completing a balance transfer to a low-interest credit card, you can save yourself a lot on interest payments and consolidate high-interest credit card debt, making your debt payoff journey simpler.

  • Checkmark

    Ideal for large purchases: If you plan to make a large purchase but may need some time to pay it off, a low-interest credit card can be a helpful tool to reduce hefty interest charges.

Cons

  • Few rewards: Low-interest cards typically come with limited rewards programs. If you want a card that helps you accumulate high amounts of points, miles or cash back, you’ll likely have to pay a little extra.

  • Credit requirements: You typically need good or excellent credit to qualify for low interest rates. If you’re not at the good-to-excellent level yet, you should improve your credit score before applying for the best approval odds.

  • Limited long-term value: While low-interest credit cards can be quite helpful, their lack of premium perks and benefits hinder their usefulness, especially for people who pay off their balances regularly.

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.

Lightbulb

Bankrate Insight

According to one Bankrate survey, about 93 percent of economists say the Federal Reserve, the entity that sets the prime rate, will likely follow through with cutting interest rates in 2024. However, the rates may remain at record highs for a bit longer as experts are split on whether the cuts will come in the first or second half of the year, making low-interest cards an even more attractive tool to have in the meantime. 

Expert advice for low-interest cards

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 for users in the r/CreditCards subreddit and myFICO Forums.

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 in the form of 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 not pay 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: Experts still foresee a possible recession in the near future

After a year of record-high inflation, the Fed is preparing to cut interest rates within the next year as unemployment falls. However, economists are still wary of the possibility of a recession later this year. Although our survey found the odds of a recession have fallen from 64 percent in Q1 2023 to 45 percent in Q4 2023, many experts say we should still proceed with caution. 

By having a low-interest credit card, you guard yourself against a higher-than-necessary interest rate. You may also be able to get a lower-than-average interest rate as the Fed begins implementing rate cuts.

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

Around 2 out of 3 adults in the U.S. between the ages of 18 and 29 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 peaked around 71 percent in September 2023 before declining in November and December to 66 percent and 58 percent, respectively. This could be due to holidays, when cardholders may spend more and have higher balances. Then approval rates increased to 64 percent as of January 2024, showing a promising trend. 

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. 

How we assess the best low-interest credit cards

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100+
card ratings
Credit Card Apr
400+
APRs tracked
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3000
data points analyzed