It’s amazing! Consumers often accept credit card offers without taking into consideration the interest rate on the card. A low interest credit card saves you money in the long run because the interest rate will determine how much you’ll eventually pay for the items you bought with the card. Low rate credit cards are even more significant when you carry a balance from month to month. Compare the lowest credit card rates and read on.
Low Interest Credit Card Options:
Smart consumers know the benefits of lower interest rates and there are many low interest credit cards available. While many of these cards may be similar, there are sometimes subtle distinctions that can make a world of difference. Some of the most appealing low interest credit cards include the 1-2-3 Rewards Visa Card, Applied Bank Visa Business Card, Barclaycard Rewards Master Card – Excellent Credit, and several cards offered by Bank America.
The best way to choose a card is to look at what it offers, determine how it stacks up against the competition and how it fits your personal needs. Let’s start with the 1-2-3- Rewards Visa Card. The Rewards Visa has the popular 0% APR introductory offer. This rate applies to purchases and debt transferred from other credit cards. The 9-month (billing cycle) introductory rate is great for all purchases, but can be even more attractive if you have high balances on other cards and want to eliminate the interest payments while you get the balances paid down or paid off.
Once the initial 9 month period ends, the APR rate adjusts to 13.99% – 23.9%. Though not as good as the initial rate, this APR compares favorably to other low interest cards. The rate the cardholder receives depends on overall credit rating, and rates are variable so they are subject to change as the customer builds a history with their Rewards Visa Card.
The Applied Bank Visa Business Card is promoted as a low interest rate card and offers a 23.99% fixed APR rate. This puts the card at the high end of the variable rate offered by the Rewards Visa, which is a bit surprising since cards directed toward businesses usually have a lower interest rate. This card is relatively easy to acquire and is often a viable option for customers with bad credit.
The Barclaycard Rewards Master Card—Excellent Credit is different from the Applied Bank Visa Business Card in several ways, and one of the biggest distinctions is its target market. Conveniently, that distinction is quite visible in the card’s title, “Excellent Credit.” You will have to possess an outstanding credit history to qualify for the 14.99% – 24.99% APR. This card also offers a 0% APR introductory offer.
Bank America has three cards that might be worth researching when looking for a low interest credit card. These cards are BankAmericard Cash Rewards Credit Card, Bank Americard Travel Rewards Credit Card and BankAmericard Visa Card. Excluding rewards and focusing on the interest rate, the BankAmericard Visa Card is the best option of the three, with a 14.99% – 23.99% APR. This credit card also offers a 0% introductory rate for balances transferred in the first 60 days and all purchases within the first 15 billing cycles.
Even if a customer’s primary concern is obtaining a credit card with a low interest rate, he or she may also want to consider other benefits associated with particular cards. While the BankAmericard Cash Rewards Credit Card (12.99% – 22.99% APR variable) and the BankAmericard Travel Rewards Credit Cards (14.99% – 22.99% APR variable) do not offer as low interest rates as the BankAmericard Visa, they do have some interesting perks that warrant a look.
The rewards card from Bank America offers cardholders 1% cash back on purchases in general and 2% cash back on groceries and 3% on gas for the first $1,500 of gas and grocery purchases. The BankAmericard Travel Reward Credit Card allows cardholders to earn points that can be used toward the purchase of flights, baggage fees and other costs associated with travelling.
The Barclays reward card also allows customers to earn points that can be redeemed toward virtually any purchase. The 1-2-3 Rewards Visa Card offers fuel points to be redeemed at Kroger company fuel stations and grocery points that can be redeemed at Kroger, King Scoopers, Fry’s, QFC and Dillons Smith’s.
Making a choice:
If you are looking for long term low interest rates, and rewards and other benefits are secondary then it probably makes sense to simply start your search with the credit card offering the lowest interest rates, exclusive of the introductory APR if it is available. However, if you are planning to transfer existing balances from other cards then the introductory 0% APR could save you a significant amount of money.
Also, which credit card you qualify for will depend on your credit rating. Low interest cards are usually offered to customers with good to excellent credit risks. Hence, when you work hard to regularly improve your credit rating, you’ll get better offers on the lowest credit card rates with minimal to zero fees and the best rewards program you can lay your hands on.