Best low-interest credit cards for August 2022

Compare Bankrate’s top low-interest credit cards

* 3% fee on the amounts transferred within the first 15 months.

A closer look at Bankrate’s top low-interest credit cards

Discover it Cash Back: Best for first-year rewards

• What we love about the Discover it Cash Back card: With the Cashback Match™ feature, Discover will match all the cash back you’ve earned at the end of your first year. Furthermore, the first-year rewards from Cashback Match can be a true windfall, especially if you often maximize bonus categories.
• Who this card is good for: Anyone who’s looking for a low-interest cash back card and is content with waiting for the new cardholder bonus.
• Alternatives: If you want to earn cash back but don’t want to deal with the hassle of activating bonus categories every quarter, tracking spending restrictions, and modifying your spending patterns, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card may be a better option than the Discover it Cash Back card.

Learn more: Reasons to love the Discover it Cash Back Card.
Read our Discover it Cash Back review or jump back to offer details.

Chase Freedom Unlimited: Best for high earning potential

• What we love about the Chase Freedom Unlimited card: It’s one of the cards that is qualified for Chase’s Pay Yourself Back feature, which allows you to redeem rewards for statement credits applied to eligible transactions. If you can maximize the higher-rate categories while remaining responsible with your spending, this low-interest card can pay out huge cash back dividends.
• Who this card is good for: People interested in earning generous cash back on general purchases and in special higher-rate categories with no limits or spending caps.
• Alternatives: If you don’t spend much on travel, dining out, or shopping at drugstores, a flat-rate cash back card like the Capital One Quicksilver Cash Rewards Credit Card may be more suited toward everyday spending.

Learn more: Is the Chase Freedom Unlimited Card worth it?
Read our Chase Freedom Unlimited review or jump back to offer details.

Wells Fargo Reflect Card: Best for long intro APR offers

• What we love about the Wells Fargo Reflect card: The chance to have a long period of up to 21 months to pay off expenses or debt. This card is a great option if you need a break from paying interest charges for an extended period of time.
• Who this card is good for: Anyone looking to finance a large purchase or refinance high-interest debt.
• Alternatives: If you don’t mind a brief intro APR period, the Chase Freedom Unlimited Card may be a better alternative — especially if you want to have the chance to earn rewards.

Learn more: Wells Fargo Reflect benefits guide.
Read our Wells Fargo Reflect Card review or jump back to offer details.

Citi Diamond Preferred Card: Best for balance transfers

• What we love about the Citi Diamond Preferred card: Few cards can match its intro offer on balance transfers (21 months at 0 percent intro APR, 15.99 percent to 25.99 percent variable APR after).
• Who this card is good for: Anyone focused on a temporary (but still lengthy) break from interest, as it can help them avoid interest charges for well over a year.
• Alternatives: Since the Citi Diamond Preferred doesn’t have a rewards program, those looking for cash back, points, or miles may prefer the Citi Rewards+ Card, which offers 2X points at supermarkets and gas stations (on up to $6,000 in purchases per year, then 1X points) with 1X points on all other purchases, as well as 5X points at restaurants for a limited time (on up to $6,000 in purchases, then 1X points) during the first 12 months.

Learn more: Is the Citi Diamond Preferred Card worth it?
Read our Citi Diamond Preferred Card review or jump back to offer details.

Capital One Quicksilver Cash Rewards Credit Card: Best for 15-month intro APR offers

• What we love about the Capital One Quicksilver Cash Rewards card: This card is fairly well-rounded, with decent flat-rate rewards, a reasonable regular variable APR range and few fees. If you want a no-fuss card that earns steady cash back rewards on everyday purchases, the Quicksilver Cash Rewards is a notable consideration for your wallet.
• Who this card is good for: Consumers who want to earn solid flat-rate rewards on all purchases and have multiple options to redeem earnings.
• Alternatives: The Chase Freedom Flex Card is an excellent pick if you prefer to strategize and earn even more cash back by tracking bonus categories.

Learn more: Capital One Quicksilver Card benefits guide.
Read our Capital One Quicksilver Cash Rewards Credit Card review or jump back to offer details.

Chase Freedom Flex: Best for cash back in multiple categories

• What we love about the Chase Freedom Flex card: Not many low-interest cards offer the kind of cash back opportunities you’ll find with the Chase Freedom Flex. If you can put in the work to track your spending and maximize the bonus categories each quarter, the returns could be impressive.
• Who this card is good for: People who want a high-earning cash back card and an easily attainable sign-up bonus ($200 after spending $500 in the first 3 months after you open your account).
• Alternatives: If you’re not concerned with earning rewards in fixed cash back categories or rotating bonus categories, the Wells Fargo Reflect Card could be a better fit for you.

Learn more: Reasons to love the Chase Freedom Flex Card.
Read our Chase Freedom Flex review or jump back to offer details.

Blue Cash Everyday Card from American Express: Best cash back card for families

• What we love about the Blue Cash Everyday Card from American Express: Most welcome offers provide three months to meet the spending requirement, but not this one. With the Blue Cash Everyday Card, you’ll earn $200 back in statement credits after spending $2,000 in purchases within the first six months of card membership.
• Who this card is good for: People whose daily routines involve a lot of mealtimes and motoring around. This no-annual-fee card can help you earn considerable cash back at U.S. supermarkets and U.S. gas stations, as well as select U.S. department stores.
• Alternatives: If you don’t plan to spend much on gas or groceries, a more flexible cash back card, such as the Discover it Cash Back Card, for example, may be preferable.

Learn more: Amex Blue Cash Everyday benefits guide.
Read our Blue Cash Everyday Card from American Express review or jump back to offer details.

Petal 2 “Cash Back, No Fees” Visa Credit Card: Best for credit-building with cash back

• What we love about the Petal 2 “Cash Back, No Fees” Visa card: It can be an effective tool to earn cash back as you build up your credit foundations. With the Petal 2 “Cash Back, No Fees” Card, making on-time monthly payments can increase the cash back rate earned on eligible purposes, giving you even more reason to stay current. Also, you can occasionally earn 2 percent to 10 percent cash back on offers at select merchants in your area.
• Who this card is good for: People building their credit profiles who want a cash back program that rewards them for responsibly making on-time credit card payments.
• Alternatives: If you’re an established credit user who already has a solid credit score, the Citi Diamond Preferred Card is a simpler and more credit-appropriate alternative to the Petal 2 “Cash Back, No Fees” Visa Card.

Learn more: Is the Petal 2 “Cash Back, No Fees” Visa Credit Card worth it?
Read our Petal 2 “Cash Back, No Fees” Visa Credit Card review or jump back to offer details.

Citi Rewards+ Card: Best for points on everyday purchases

• What we love about the Citi Rewards+ card: The combination of the intro APR offer on both purchases and balance transfers with its rewards program makes the Citi Rewards+ Card a solid option for frugal shoppers. Also, the Citi Rewards+ is the only card that automatically rounds your points up to the nearest 10 points on every purchase with no cap.
• Who this card is good for: People who want a low-interest card that also earns rewards on everyday spending.
• Alternatives: If you would rather have a card with a higher rewards rate on grocery store purchases, the Blue Cash Everyday Card from American Express — which earns 3 percent at U.S. supermarkets (on up to $6,000 in expenditures each year, followed by 1%) would be the most ideal alternative.

Learn more: How to maximize value with your Citi Rewards+ Card.
Read our Citi Rewards+ Card review or jump back to offer details.

What is 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 12 percent to 14 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.

Given the cost of credit card interest, it’s important to minimize your exposure to interest charges or avoid them altogether. Bankrate estimates the average credit card interest rate at 17.35 percent variable as of July 27, 2022. Paying your balance on time and in full every month is the surest way to avoid interest and the method that we recommend. On the other hand, a low-interest card could help you pay less in interest if you do carry a balance.

Understanding your card’s interest rate

Although annual percentage rates are expressed on a yearly basis, you’ll be charged each month as long as you carry a credit card balance. Your card’s APR will typically be listed on your monthly credit card statement. It can appear fairly straightforward at first glance, but understanding how that percentage applies to your current balance requires some calculations. For example, if you currently owe $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:

15% APR ÷ 12 months = 1.25% monthly interest, 1.25% x $500 = $6.25 in interest.

Pros and cons of low-interest credit cards

Who should get a low-interest credit card?

Credit cards with low interest rates can come in handy for certain types of people in certain situations. Consider a low-interest credit card if you find yourself in these scenarios:

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  The (sometimes) balance carrier

  The best strategy to avoid interest is to not carry a balance on your credit card, period, even though that might not be possible in every situation. One advantage of low-interest cards is that if you wind up carrying a balance, the interest could be less costly. If you occasionally can’t pay your balances off in full or you’re a first-time cardholder worried about that possibility, a low interest rate might prove reassuring.

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  The debt manager

  A balance transfer could help you save hundreds of dollars that would otherwise have gone toward paying off high-interest credit card debt. Even if the introductory offer is low-interest rather than zero-interest, you’d save money as long as the intro rate is lower than what you’re currently paying. To see what the balance transfer process might look like, you can use Bankrate’s Credit Card Balance Transfer Calculator.

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  The savvy shopper

  In cases where you know you have a large purchase coming up, a low-interest card—or even better, a zero-interest card with a solid introductory offer on purchases—could be a smart choice.

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.

How to get a low-interest credit card

It’s best to always pay your credit card balance in full each month, but if you’re unable to and you still want to save, a low-interest card is the way to go. To take full advantage of all of the benefits of a low-interest card and to find the best card for you, follow the steps below.

Step 1: Build your credit to a good/excellent level

People with higher credit scores tend to qualify for lower interest rates on any kind of loan, including credit cards. If your credit is fair or bad, you may not qualify for the most advantageous rates. The first step is to find out what your current score is and check for any issues or errors on your credit report. If your credit needs work, stick to a long-term strategy for improving your credit score.

Step 2: Explore all of your options

One of the keys to finding a low-interest card is how you compare and evaluate these offers. Go online to sort through your viable options and contact your bank or credit union to see what’s available to you. Find cards in your range, weigh the perks, and pay attention not only to the low ends of the variable APRs but also the high end.

Step 3: Look for pre-qualified offers

A pre-qualified offer involves an initial evaluation before beginning the actual process of applying. With pre-qualification, you won’t be subject to a hard inquiry that can temporarily lower your credit score. You can also check out Bankrate’s CardMatch™ tool to see which offers fit you best without impacting your credit score.

How to reduce the credit card interest you pay

One of the common misconceptions about credit cards is that they can be dangerous to your financial health. The truth is that credit cards themselves aren’t bad, but if you’re not careful, interest can quickly plunge you into debt. Low-interest cards are a great way to avoid hefty interest charges. Follow the tips below to keep interest payments at bay with your low-interest credit card:

• Pay off your balances: Low-interest cards are great for times when it becomes necessary to carry a credit card balance from month to month, but if you use your credit card wisely, interest payments don’t have to be a part of the equation at all. Paying the total of your credit card balance each month allows you to avoid interest charges altogether.
• Consolidate debt to a low-interest card: If you find yourself with a balance on one or more credit cards with high-interest rates, consider moving that debt to a single low-interest card, if possible. Completing a balance transfer can help reduce the amount you’ll pay in interest and simplify the debt repayment process.
• Keep future spending in mind: If you plan to finance a significant purchase on a credit card, be sure to keep low-interest cards top of mind. You can save on interest and pay less over time with a low-interest card.

More information on credit cards, interest rates and APR

Still need to do more research? Bankrate has a wealth of resources on low-interest credit cards and related topics.

• Current credit card interest rates
• Low interest credit card reviews
• 0% intro APR credit card reviews

Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.