Low-Interest Credit Cards: How to Pay Less Interest
If you sometimes carry a balance, the interest rate on your card matters more than any reward. Here's how low-interest cards work, the difference between a low intro rate and a low ongoing rate, why credit union cards are often cheaper, and how to compare cards.
By Pond.com editors Updated 3 min read
Quick answer
- A low-interest card is worth more than rewards if you ever carry a balance from month to month.
- A 0% intro APR helps for a set time; a low ongoing APR helps for as long as you have the card.
- Federal credit unions can't charge more than 18% APR, so their cards are often the cheapest.
- Card issuers advertise an APR range; the rate you get depends on your credit.
- The best way to pay less interest is still to pay off your balance in full each month.
Credit card interest is expensive. If you carry a balance even some of the time, the rate on your card can cost far more each year than any cash back or points you earn. A low-interest card keeps that cost down.
This article is general information, not financial advice.
Low intro rate or low ongoing rate?
| Type | What it means | Best for |
|---|---|---|
| 0% intro APR | No interest for a set time, often 12 to 21 months, then the regular rate | Paying off a big purchase or a transferred balance on a plan |
| Low ongoing APR | A lower rate for as long as you have the card | People who sometimes carry a balance |
Many cards offer both. Check the regular APR as well as the intro offer, because that's the rate you'll pay once the offer ends. For moving existing debt, see balance transfer cards.
No-annual-fee cards with low ongoing interest rates, ordered by their lowest starting APR.
| Provider | Regular APR | Intro 0% APR | Details |
|---|---|---|---|
| First Tech Federal Credit Union Platinum Mastercard, opens in a new tab Credit union; you can join through a partner organization. | 10.49%–18.00% variable | None | Credit union; you can join through a partner organization. Visit site First Tech Federal Credit Union Platinum Mastercard, opens in a new tab |
| Bank of America BankAmericard, opens in a new tab Transfers must be made within 60 days; 5% transfer fee. | 15.24%–26.24% variable | 21 billing cycles, purchases and transfers | Transfers must be made within 60 days; 5% transfer fee. Visit site Bank of America BankAmericard, opens in a new tab |
| Citi Diamond Preferred Card, opens in a new tab | 16.74%–27.49% variable | 21 months on transfers; 12 months on purchases | Visit site Citi Diamond Preferred Card, opens in a new tab |
| U.S. Bank Shield Visa Card, opens in a new tab | 17.24%–28.24% variable | 21 billing cycles, purchases and transfers | Visit site U.S. Bank Shield Visa Card, opens in a new tab |
| Wells Fargo Reflect Card, opens in a new tab | 17.74%, 24.24% or 28.49% variable | 21 months, purchases and transfers | Visit site Wells Fargo Reflect Card, opens in a new tab |
| PenFed Credit Union Platinum Rewards Visa Signature, opens in a new tab Credit union open to anyone; membership is set up when you apply. Earns points and has no foreign transaction fee. | 17.99% variable | 12 months on transfers | Credit union open to anyone; membership is set up when you apply. Earns points and has no foreign transaction fee. Visit site PenFed Credit Union Platinum Rewards Visa Signature, opens in a new tab |
How we chose these
We included no-annual-fee credit cards with low ongoing rates from major US banks and from credit unions that most people can join. Cards are ordered by the lowest APR in their advertised range. We check each card's own page and terms; where an issuer doesn't show its rates in a form we can read, we use independent card reviews. The rate you're offered depends on your credit. Pond.com isn't paid by any card issuer listed here.
All cards listed have no annual fee. Rates are variable and move with the prime rate; you'll be offered a rate within the range based on your credit. Credit union cards need membership, which these credit unions let most people get.
For information only, not a recommendation. Rates and terms change often and may depend on where you live; check the details with the provider before you apply. Pond.com isn't paid by any provider listed here.
Why credit union cards are often cheaper
Federal credit unions are not-for-profit, and they generally can't charge more than 18% APR. Many big-bank cards top out near 28% or more. Credit union cards also tend to have fewer fees.
You'll need to join the credit union, but many make it easy: some let anyone join through a partner organization or a small savings deposit.
How to compare cards
- Look at the whole APR range. Card issuers advertise a range, and you get a rate within it based on your credit. The lowest number goes to applicants with excellent credit.
- Check the regular APR after any intro offer.
- Look at fees: annual fee, balance transfer fee and late fees.
- Check for a penalty APR, a higher rate some cards charge after a late payment.
- Use pre-qualification tools, which many issuers offer, to see likely terms without hurting your credit score.
Your credit score matters most
The better your credit, the lower the rate you're offered. Paying on time and keeping balances low improve your score over time. See how credit scores work.
Other ways to pay less interest
- Pay in full each month, so the rate doesn't matter at all.
- Pay more than the minimum, which cuts both interest and time.
- Ask your card issuer for a lower rate, especially if you've paid on time for a year or more.
- Consider a personal loan to pay off high-rate card debt at a fixed, lower rate. See personal loan vs credit card.
Common questions
Average card rates are above 20%. An ongoing APR in the low to mid teens is good, and some credit union cards start around 10% for people with excellent credit. A 0% intro APR is better for a while, but check what the rate becomes afterward.
Federal credit unions are not-for-profit and, by law, generally can't charge more than 18% APR on loans and credit cards. Their cards often have lower ongoing rates and fewer fees, though you need to become a member, which many credit unions make easy.
If you always pay your balance in full, rewards matter more because you never pay interest. If you sometimes carry a balance, a low rate usually saves more than any rewards earn, since 20% interest quickly cancels out 1% to 2% cash back.