Credit card interest rates have steadily increased over the last two years as the Federal Reserve repeatedly raised the federal funds rate to combat inflation. Today the average annual percentage rate, or APR, on a credit card is 20.74% -- up from 16.28% in January 2022 -- according to data from Bankrate.
You can avoid accruing interest on your credit card by paying your balance in full and on time every month, but that can be easier said than done. A low-interest credit card can help reduce the cost of a revolving balance, but a card with an introductory 0% purchase APR will save you even more money if you need to carry a balance in the future. We’ve selected some of the best low-interest credit cards below, many of which also have 0% introductory APR periods. Though you should strive to always pay your entire card balance, having a low-interest option in your wallet can provide some peace of mind in an emergency.
Below we break down our top picks for low-interest credit cards.
Best low-interest credit cards
The Wells Fargo Reflect® Card is a solid option if you’re looking to finance a large purchase or consolidate high-interest debt. This no-annual-fee card offers a 0% intro APR on purchases and qualifying balance transfers for 21 months from account opening. At the end of the 0% introductory APR period, your regular APR will increase to 18.24%, 24.74%, or 29.99% variable. This isn’t the lowest variable interest rate on the list, but few cards can compete with the extensive introductory APR period Wells Fargo offers with the Reflect Card.
The Wells Fargo Reflect Card doesn’t offer any rewards, but you can get up to $600 in cell phone protection against damage or theft when you pay your cell phone bill with the Reflect card (subject to a $25 deductible).
For more information, see our full review of the Wells Fargo Reflect Card.
- Intro Balance Transfer APR
- 0% intro APR for 21 months from account opening on qualifying balance transfers. Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Intro Purchase APR
- 0% intro APR for 21 months from account opening. Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Regular APR
- 18.24%, 24.74%, or 29.99% Variable APR
- Balance Transfer Fee
- 5%, min: $5
The Wells Fargo Reflect® Card is a solid option if you’re looking to finance a large purchase or consolidate high-interest debt. This no-annual-fee card offers a 0% intro APR on purchases and qualifying balance transfers for 21 months from account opening. At the end of the 0% introductory APR period, your regular APR will increase to 18.24%, 24.74%, or 29.99% variable. This isn’t the lowest variable interest rate on the list, but few cards can compete with the extensive introductory APR period Wells Fargo offers with the Reflect Card.
The Wells Fargo Reflect Card doesn’t offer any rewards, but you can get up to $600 in cell phone protection against damage or theft when you pay your cell phone bill with the Reflect card (subject to a $25 deductible).
For more information, see our full review of the Wells Fargo Reflect Card.
- Intro Balance Transfer APR
- 0% intro APR for 21 months from account opening on qualifying balance transfers. Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Intro Purchase APR
- 0% intro APR for 21 months from account opening. Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Regular APR
- 18.24%, 24.74%, or 29.99% Variable APR
- Balance Transfer Fee
- 5%, min: $5
BankAmericard® credit card
The BankAmericard® credit card* offers 0% introductory APR on both purchases and balance transfers for 18 billing cycles. After the 0% promotional period ends, your regular APR goes up to 16.24% to 26.24% variable. However, you must make your balance transfer in the first 60 days to qualify for the introductory offer.
You won’t earn rewards with the BankAmericard credit card, but it doesn’t come with an annual fee.
For more information, see our full review of the BankAmericard credit card.
- Intro Balance Transfer APR
- 0% Intro APR for 18 billing cycles for any BTs made in the first 60 days. A fee of 3% for 60 days from account opening, then 4% will apply.
- Intro Purchase APR
- 0% Intro APR for 18 billing cycles for purchases
- Regular APR
- 16.24% – 26.24% Variable APR on purchases and balance transfers
- Balance Transfer Fee
- 3% for 60 days from account opening, then 4%
The BankAmericard® credit card* offers 0% introductory APR on both purchases and balance transfers for 18 billing cycles. After the 0% promotional period ends, your regular APR goes up to 16.24% to 26.24% variable. However, you must make your balance transfer in the first 60 days to qualify for the introductory offer.
You won’t earn rewards with the BankAmericard credit card, but it doesn’t come with an annual fee.
For more information, see our full review of the BankAmericard credit card.
- Intro Balance Transfer APR
- 0% Intro APR for 18 billing cycles for any BTs made in the first 60 days. A fee of 3% for 60 days from account opening, then 4% will apply.
- Intro Purchase APR
- 0% Intro APR for 18 billing cycles for purchases
- Regular APR
- 16.24% – 26.24% Variable APR on purchases and balance transfers
- Balance Transfer Fee
- 3% for 60 days from account opening, then 4%
The Discover it® Cash Back* is a great low-interest option if you’re also looking to earn rewards on all of your purchases. You earn 5% cash back on rotating categories up to $1,500 each quarter (then 1%), and 1% cash back on all other purchases. Discover also offers a solid welcome offer that automatically matches all the cash back you earn at the end of your first year, which is a competitive offer for a card with no annual fee. But one downside to consider is you have to manually activate the cash-back categories each quarter to earn the higher rewards rate.
The Discover it Cash Back also offers a 15-month 0% introductory APR on both purchases and balance transfers. After 15 months, your regular APR increases to 17.24% to 28.24% variable.
For more information, see our full review of the Discover it Cash Back.
- Intro Balance Transfer APR
- 0% for 15 months
- Intro Purchase APR
- 0% for 15 months
- Regular APR
- 17.24% – 28.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
The Discover it® Cash Back* is a great low-interest option if you’re also looking to earn rewards on all of your purchases. You earn 5% cash back on rotating categories up to $1,500 each quarter (then 1%), and 1% cash back on all other purchases. Discover also offers a solid welcome offer that automatically matches all the cash back you earn at the end of your first year, which is a competitive offer for a card with no annual fee. But one downside to consider is you have to manually activate the cash-back categories each quarter to earn the higher rewards rate.
The Discover it Cash Back also offers a 15-month 0% introductory APR on both purchases and balance transfers. After 15 months, your regular APR increases to 17.24% to 28.24% variable.
For more information, see our full review of the Discover it Cash Back.
- Intro Balance Transfer APR
- 0% for 15 months
- Intro Purchase APR
- 0% for 15 months
- Regular APR
- 17.24% – 28.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
The Blue Cash Everyday® Card from American Express* is a solid choice if you want to earn rewards on everyday purchases. With no annual fee, you earn 3% cash back at U.S. supermarkets, U.S. online retail purchases and U.S. gas stations (on up to $6,000 per year in each category, then 1%), and 1% cash back on other purchases. Though the welcome offer involves a high spending threshold compared with the other cards on this list, you can earn a $200 statement credit after spending $2,000 in purchases in the first six months of card membership.
The Blue Cash Everyday Card also offers a 0% introductory APR for 15 months from account opening on purchases and balance transfers. After the introductory period ends, the variable APR kicks in at 19.24% to 29.99%.
For more information, see our full review of the Blue Cash Everyday Card from American Express.
- Intro Balance Transfer APR
- 0% on balance transfers for 15 months
- Intro Purchase APR
- 0% on Purchases for 15 months
- Regular APR
- 19.24% – 29.99% Variable
- Balance Transfer Fee
- Either $5 or 3% of the amount of each transfer, whichever is greater.
The Blue Cash Everyday® Card from American Express* is a solid choice if you want to earn rewards on everyday purchases. With no annual fee, you earn 3% cash back at U.S. supermarkets, U.S. online retail purchases and U.S. gas stations (on up to $6,000 per year in each category, then 1%), and 1% cash back on other purchases. Though the welcome offer involves a high spending threshold compared with the other cards on this list, you can earn a $200 statement credit after spending $2,000 in purchases in the first six months of card membership.
The Blue Cash Everyday Card also offers a 0% introductory APR for 15 months from account opening on purchases and balance transfers. After the introductory period ends, the variable APR kicks in at 19.24% to 29.99%.
For more information, see our full review of the Blue Cash Everyday Card from American Express.
- Intro Balance Transfer APR
- 0% on balance transfers for 15 months
- Intro Purchase APR
- 0% on Purchases for 15 months
- Regular APR
- 19.24% – 29.99% Variable
- Balance Transfer Fee
- Either $5 or 3% of the amount of each transfer, whichever is greater.
Bank of America® Travel Rewards credit card
The Bank of America® Travel Rewards credit card* is a solid option for occasional travelers who don’t want to remain tied to a particular airline. You earn unlimited 1.5X points on all purchases, with no foreign transaction fees and no annual fee. And unlike many cards on this list, the Bank of America Travel Rewards card offers an intro bonus. You earn 25,000 bonus points if you spend at least $1,000 in the first 90 days from account opening.
You’ll also get 0% introductory APR on purchases and balance transfers for 15 billing cycles. After 18 billing cycles, a regular variable APR of 18.24% to 28.24% kicks in. If you want to transfer a high-interest debt to this card, you need to make a balance transfer within the first 60 days of approval (an introductory 3% balance transfer fee applies for 60 days from account opening, then 4%).
For more information, see our full review of the Bank of America Travel Rewards credit card.
- Intro Balance Transfer APR
- 0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A fee of 3% for 60 days from account opening, then 4% will apply.
- Intro Purchase APR
- 0% Intro APR for 15 billing cycles for purchases
- Regular APR
- 18.24% – 28.24% Variable APR on purchases and balance transfers
- Balance Transfer Fee
- 3% for 60 days from account opening, then 4%
The Bank of America® Travel Rewards credit card* is a solid option for occasional travelers who don’t want to remain tied to a particular airline. You earn unlimited 1.5X points on all purchases, with no foreign transaction fees and no annual fee. And unlike many cards on this list, the Bank of America Travel Rewards card offers an intro bonus. You earn 25,000 bonus points if you spend at least $1,000 in the first 90 days from account opening.
You’ll also get 0% introductory APR on purchases and balance transfers for 15 billing cycles. After 18 billing cycles, a regular variable APR of 18.24% to 28.24% kicks in. If you want to transfer a high-interest debt to this card, you need to make a balance transfer within the first 60 days of approval (an introductory 3% balance transfer fee applies for 60 days from account opening, then 4%).
For more information, see our full review of the Bank of America Travel Rewards credit card.
- Intro Balance Transfer APR
- 0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A fee of 3% for 60 days from account opening, then 4% will apply.
- Intro Purchase APR
- 0% Intro APR for 15 billing cycles for purchases
- Regular APR
- 18.24% – 28.24% Variable APR on purchases and balance transfers
- Balance Transfer Fee
- 3% for 60 days from account opening, then 4%
The Citi® Diamond Preferred® Card* offers 21 months of 0% introductory APR on balance transfers (then 18.24% to 28.99% variable APR), but balances are subject to a 5% fee (or $5 minimum). Balance transfers must be completed within four months of account opening. Its higher-than-average balance transfer fee sets the Citi Diamond Preferred apart from the other cards on this list that offer 21 months to pay down a transferred balance. There is no annual fee, but you also won’t earn rewards with this card. If you don’t need to transfer a high-interest debt, this card offers a 0% introductory APR on purchases for the first 12 months from account opening. After the 0% introductory period ends for both purchases and balance transfers, your APR jumps to 18.24% to 28.99% variable.
For more information, see our full review of the Citi Diamond Preferred Card.
- Intro Balance Transfer APR
- 0% for 21 months on Balance Transfers
- Intro Purchase APR
- 0% for 12 months on Purchases
- Regular APR
- 18.24% – 28.99% (Variable)
- Balance Transfer Fee
- Balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum.
The Citi® Diamond Preferred® Card* offers 21 months of 0% introductory APR on balance transfers (then 18.24% to 28.99% variable APR), but balances are subject to a 5% fee (or $5 minimum). Balance transfers must be completed within four months of account opening. Its higher-than-average balance transfer fee sets the Citi Diamond Preferred apart from the other cards on this list that offer 21 months to pay down a transferred balance. There is no annual fee, but you also won’t earn rewards with this card. If you don’t need to transfer a high-interest debt, this card offers a 0% introductory APR on purchases for the first 12 months from account opening. After the 0% introductory period ends for both purchases and balance transfers, your APR jumps to 18.24% to 28.99% variable.
For more information, see our full review of the Citi Diamond Preferred Card.
- Intro Balance Transfer APR
- 0% for 21 months on Balance Transfers
- Intro Purchase APR
- 0% for 12 months on Purchases
- Regular APR
- 18.24% – 28.99% (Variable)
- Balance Transfer Fee
- Balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card, issued by WebBank, is a rare credit-builder card that offers cash back, no annual fee, no late fees and no security deposit. You don’t have to have an established credit score to apply for the Petal 2, making it a solid option if you’re just starting to work on your credit score (or need to repair a damaged one). You can earn up to 1.5% cash back on eligible purchases after you make 12 on-time monthly payments. This card doesn’t offer a promotional APR period for balance transfers or purchases. The variable APR ranges from 18.24% to 32.24%.
For more information, see our full review of the Petal 2 “Cash Back, No Fees” Visa Credit Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card, issued by WebBank, is a rare credit-builder card that offers cash back, no annual fee, no late fees and no security deposit. You don’t have to have an established credit score to apply for the Petal 2, making it a solid option if you’re just starting to work on your credit score (or need to repair a damaged one). You can earn up to 1.5% cash back on eligible purchases after you make 12 on-time monthly payments. This card doesn’t offer a promotional APR period for balance transfers or purchases. The variable APR ranges from 18.24% to 32.24%.
For more information, see our full review of the Petal 2 “Cash Back, No Fees” Visa Credit Card.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
What is a low-interest credit card?
A low-interest credit card is classified based on its annual percentage rate. Credit cards tend to have variable interest rates, meaning they fluctuate based on the Federal Reserve’s prime rate. Fixed-interest rates, which you see often on personal loans, don’t fluctuate after you lock your rate in. Most credit cards have variable interest rates.
You don’t have to worry about interest charges if you pay your credit card balance in full and on time every month. But you will owe interest if you carry a balance. How much you owe is based on your card’s balance and APR, which you can locate on your card’s terms and conditions disclosure or via your online account. If you need help locating your card’s APR, check your online account, or call your issuer directly and ask to speak with a customer service agent.
Pros and cons of a low-interest credit card
Pros
You can save money on interest
Some cards offer 0% introductory APR periods on purchases and/or balance transfers
Cons
Many low-interest credit cards don’t offer rewards or premium perks
You often need a good or excellent credit score to qualify
How to reduce the amount of credit card interest you pay
Low-interest credit cards provide one way to combat high-interest charges, but interest is avoidable if you pay off your balance in full each month. Sometimes carrying a balance is unavoidable, and you shouldn’t feel bad if you find yourself in an emergency where you must put an unexpected charge on your credit card. But you can avoid landing yourself in unmanageable debt by thinking ahead and creating a payment plan or finding the right 0% introductory APR offer. Here are a few ways you can avoid credit card interest:
- Avoid overspending. In order to avoid a balance you can’t afford to pay off, you’ll want to make sure you’re spending within your budget each time you use your card.
- Pay your balance on time and in full. Your statement balance includes any charges made during the most recent billing cycle (including any unpaid balances from the previous month). If you pay your statement balance in full by its due date every month, you can avoid accruing interest charges altogether.
- Consolidate debt with a balance transfer. If you have high-interest credit card debt eating a hole in your pocket, consider moving your debt over to a card with a 0% introductory APR balance transfer offer. If approved, you’ll have anywhere from nine to 21 months to pay down your credit card debt without paying interest. Pay off your balance before the promotional period ends to make the most out of a 0% intro APR offer. Any remaining balance is subject to your card’s regular APR.
- Get a low-interest card for future spending. Having a low-interest credit card on standby can come in handy. If you need to finance a large purchase, apply for a credit card with a 0% introductory purchase APR offer so you can save money on interest and spread your payments out over several months.
- Ask your issuer to reduce your rate. If you have a high-interest rate on an existing credit card, you can ask your issuer to lower your interest rate. Your issuer may consider negotiating with you if you have a history of on-time payments. But credit card issuers aren’t obligated to adjust your interest rate, so understand it’s likely they may decline.
FAQs
There isn’t one particular figure that sets the standard for what is a good interest rate. However, the average APR on a credit card is 20.74%, so you might want to reconsider a credit card if its APR exceeds 21% (especially if you need to carry a balance).
Low-interest credit cards can reduce the cost of carrying a balance on a credit card by offering interest rates below the average for most credit cards. However, it’s important to remember credit card interest rates are variable and subject to change. But credit cards with 0% introductory APR offers provide a period where carrying a balance won’t accrue any interest. Once the predetermined introductory period ends, the card’s regular APR kicks in, and any remaining balance is subject to interest.
If you can avoid carrying a balance on your credit card, your interest rate essentially remains at 0%. However, your credit card’s actual interest rate is based on your creditworthiness. Typically, the higher your credit, the lower your interest rate.
Methodology
CNET reviews credit cards by exhaustively comparing them across set criteria developed for each major category, including cash back, welcome bonus, travel rewards and balance transfer. We take into consideration the typical spending behavior of a range of consumer profiles -- with the understanding that everyone’s financial situation is different -- and the designated function of a card.
For rates and fees of the Blue Cash Everyday Card from American Express, click here.
*All information about the BankAmericard credit card, Citi Diamond Preferred Card, Bank of America Travel Rewards credit card, Blue Cash Everyday Card from American Express and the Discover it Cash Back has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
