The Best Low-Interest Credit Cards in AmericaAdvertiser Disclosure by Jason Steele
When you regularly carry a balance on your credit cards, your first priority should be to find a card with the lowest possible interest rate. And while some credit card users will look for low promotional financing rates that expire after a set period of time, others prefer to find a card with a low interest rate year-round.
How to Find a Low-Interest Credit Card
When you are researching credit cards, the interest rate is one of the first things you see. Before you apply for a credit card, an issuer will disclose the annual percentage rate for purchases. In fact, there may be a range or multiple APRs disclosed here, since your credit score is a major factor in whether you get approved for the card and which interest rate you’ll be granted. (You can view two of your credit scores for free, updated every 14 days, on Credit.com to see where you stand.)
There are some other interest rates issuers will disclose as well. For example, the interest rates for balance transfers or cash advances. You should consider the interest rates that apply to these transactions as well if you’re planning to use these card features. Cash advance APRs tend to be higher than purchase APRs and there may not be a grace period.
Most credit cards now offer a variable interest rate, which can change based on adjustments to the Prime Rate, which itself varies with the Federal Funds rate. And although the Prime Rate can change at any time, it has been very low and stable since 2008, with just a single rise of just 0.25% in December 2015.
When picking the Best Low-Interest Credit Cards in America, we looked at the purchase APRs as well as other cardholder-friendly features to rank the standouts in this category. Here are this year’s choices for best low-interest credit cards.
The Winner: Unify Credit Union’s Variable-Rate Visa Credit Card
Why it won: The most qualified applicants will receive an unheard-of variable APR for purchases.
The Rates: Unify Credit Union offers several Variable-Rate Visa Credit Cards with interest rates of 5.24% – 18%. The APR you receive is based on your creditworthiness and will vary with the market, based on the Prime Rate. A rate of 3% or $5, whichever is greater, applies to balance transfers and cash advances. There are no annual fees for these cards.
The Features: You can choose from several different variable-rate cards including the Visa Classic, Visa Gold, Visa Platinum and Engage Rewards Visa Signature cards, and the benefits will vary based on the product you choose. The Engage Rewards Visa Signature card comes with numerous benefits including a warranty manager service, travel and emergency assistance, and even a rewards program.
1st Runner-Up: Simmons Bank Platinum Card
Why it won: It offers an extremely low standard rate to all applicants.
The Rates: This card has a variable interest rate of 7.5% which applies to both new purchases and balance transfers, while a slightly higher rate of 11.25% will apply to cash advances and convenience checks. There is no annual fee for this card.
The Features: This card comes with just a few benefits including a car rental loss/damage waiver, travel accident insurance and emergency cash and credit card replacement.
2nd Runner-Up: Barclaycard Ring MasterCard
Why it won: In addition to being an innovative credit card, it also offers very low interest rates.
The Rates: This card offers a variable interest rate of 8.25% APR which applies to new purchases, balance transfers and even cash advances. There is no annual fee for this card.
The Features: This is not just a credit card with a low interest rates, it also features an online community of cardholders who interact with Barclaycard’s community manager to oversee the features and policies of this card. Community members participate in forums that help decide the card’s terms and conditions as well as determine how to give back profits in the form of customer rewards or donations to charity.
At publishing time, the Barclaycard Ring is offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for the card. However, this relationship does not result in any preferential editorial treatment.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly