Low Interest Credit Card Offers from Our Partners

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Low interest credit cards are useful for any individual who might need to carry a balance over time (the interest rate may not be so important for those who pay their balances in full every month). If you know you need (or might need) to charge an amount that you can’t immediately pay off, a low interest credit card can help you save money in interest on those purchases.
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About Low Interest Credit Cards

About low interest credit cards

A low interest credit card is one with a below-average Annual Percentage Rate (APR), generally speaking. Credit cards that come with a temporary 0% introductory APR can be considered low interest during that time, but not after the regular APR kicks in. Sometimes, issuers offer fewer benefits and rewards on credit cards with very low interest rates.
In today’s credit card market, most consumers may consider an APR below 11% or 12% to be favorable, and an APR under 10% to be low.

How low interest credit cards save you money

Low interest credit cards save you money by charging less interest each month than comparable credit cards with higher interest rates. If you owe $5,000 on a credit card with a 14.99% APR and you pay $200 a month towards the balance, it’ll take 31 months to pay it off and cost just over $1,000 in interest. If the APR is 8.99% and you make the same $200 monthly payment, you trim three months off the payoff time and save nearly $500 in interest.

How are APRs set?

The credit card company determines the APR range for each credit product it offers. Credit card issuers often set different rates that apply to different types of transactions and different circumstances. For example, various APRs for a promotional purchase or introductory period, regular purchases, balance transfers and cash advances. Some credit card issuers also impose a higher penalty APR if you miss a payment.
A fixed APR, like the interest rate on an installment loan, does not change. Variable APRs are more common for credit cards. This rate is typically tied to the U.S. Prime rate (the overnight rate banks charge each other). For instance, if the Prime rate is 3.75% and the bank adds a margin range of 5.74% to 8.74% to the variable purchase APR, the variable purchase APR range would be 9.49% to 12.49%. As the Prime rate fluctuates so does the APR on your credit card.
The APR set for your account is based on your creditworthiness and other factors (which includes your credit rating/credit score). The better your credit score, the better your chances to be eligible for a lower APR (within the range set for the credit card). On the flip side, a lower credit score typically means a higher rate.

Low interest credit cards pros & cons

The main benefit to low interest credit cards for balance transfers or purchases is the potential to save money over time.
A major drawback of low interest credit cards is that the lowest interest rate is often promotional and does not last for the entire time you own the account.
Another drawback is that many of the lowest interest rate credit cards have no rewards program or perks.

Advertiser Disclosure: Many of the offers that appear on this site are from companies from which Credit Sesame receives compensation. This compensation may impact how and where products appear (including, for example, the order in which they appear). Credit Sesame provides a variety of offers, but these offers do not include all financial services companies or all products available.

Credit Sesame is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website, mobile apps, and communication methods; however, all information is presented without warranty or guarantee. All images and trademarks are the property of their respective owners.
Editorial Content Disclosure: The editorial content on this page (including, but not limited to, Pros and Cons) is not provided by any credit card issuer. Any opinions, analysis, reviews, or recommendations expressed here are the author's alone, not those of any credit card issuer, and have not been reviewed, approved or otherwise endorsed by any credit card issuer.
† Approval Odds: Credit Sesame calculates your approval odds by comparing your credit profile to other Credit Sesame members who were approved for this product. These approval odds are estimates only and do not guarantee approval. Lenders, credit card issuers, and other financial institutions use a variety of different types of credit scores and criteria to make credit and lending decisions. The TransUnion credit score we provide is based on the VantageScore 3.0 model and may not be the credit scoring model used by financial institutions presenting offers on our website.
†† Average and Lowest Scores: "Average" and "Lowest" scores refer to the scores of Credit Sesame members who were approved for this product. These scores are estimates only and do not guarantee approval. Lenders, credit card issuers, and other financial institutions use a variety of different types of credit scores and other criteria to make credit and lending decisions. The TransUnion credit score Credit Sesame provides you is based on the VantageScore 3.0 model and may not be the credit scoring model used by the financial institutions presenting offers on the Credit Sesame website.
Provider's Terms: *See the online provider's application for details about terms and conditions. Reasonable efforts have been made to maintain accurate information, however, all information is presented without warranty or guarantee. When you click on the "Apply Now" button, you can review the terms and conditions on the provider's website. Offers are subject to change and the terms displayed may not be available to all consumers.
Loan APR Estimates: Annual Percentage Rates, loan terms and monthly payments shown are estimated based upon analysis of your credit profile, information you entered, and/or rate information provided by lenders. While efforts have been made to maintain accurate information, the loan information is presented without warranty and the estimated APR or other terms shown do not bind any lender. All loans are subject to credit review and approval. When evaluating offers, please review the lender's terms and conditions for additional details.
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Advertiser Disclosure:
Many of the offers that appear on this site are from companies from which Credit Sesame receives compensation. This compensation may impact how and where products appear (including, for example, the order in which they appear). Credit Sesame provides a variety of offers, but these offers do not include all financial services companies or all products available.

Credit Sesame is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website, mobile apps, and communication methods; however, all information is presented without warranty or guarantee. All images and trademarks are the property of their respective owners.
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