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Credit cards offering low rate in interest in the United States

Low percentage credit cards are a suitable option for permanent credit cards users as they help save funds both on interest and annual fees.

Citi® Diamond Preferred® Card
  • $0 Annual fee
  • 14.74% - 24.74% Variable APR
  • 0% intro APR on Purchases and Balance Transfers for 18 months

BankAmericard® credit card
  • $0 Annual fee
  • 12.99% - 22.99% Variable APR
  • 0% intro APR for 18 billing cycles on purchases and on any balance transfers made within 60 days of account opening

Wells Fargo Platinum card
  • Annual fee - $0
  • 16.49% - 24.49% Variable APR
  • 0% intro APR for 18 months from account opening on purchases and qualifying balance transfers

Other credit cards offers

Wiki - useful articles

Interesting facts in articles from the financial community.

A per annum percentage is a fee charged for borrowing from a card issuer according the limit of credit. Rates vary depending on issuers.

The idea of credit cards allowing low percentage

These cards are determined by yearly interest which is usually fixed of variable. In case the lower limit of the variable percentage ranges from early to mid-teens clients and the upper one is for customers of low to mid-20s then such a card is usually qualified as of a low percentage. The options with a fixed per annum interest below 14 percent are eligible too.

This bank product can also have a zero interest initial offer which provides the option to avoid temporarily interest on purchasing, balance transferring or both.

An annual rate in interest, fixed or variable, is of help when determining the percentage value which might be charged if a client doesn't redeem a monthly balance in full. Considering this data it is important to minimize or avoid exposure to interest.

Paying the balance timely and completely on a monthly basis is the most reliable method for avoiding interest. In the meantime, a card with low percentage can help redeem less interest in case a balance presence.

The concept of credit card percentage

Interest is an amount payable by a client in case a credit card's balance is not fully covered at the turn of each month. The percentage will be listed as the yearly one that is the yearly cost of funds borrowing made up of an interest, commissions and other fees. The amount paid monthly as interest may vary depending on factors such as the client's creditworthiness and a credit account type. Paying the balance in full guarantees the interest will not be charged but in case of a contrary situation the rate of interest is among the most important characteristics of a credit card.

For alleviating problems that accrual of interest can cause introductory offers for purchasing and balance transferring (usually of 0%) are available or just a low regular rate in interest is provided.

The difference between variable and fixed percentage

As mentioned above 2 types of credit card yearly interest exists, fixed and variable.

A fixed rate does not change along with the base rate. Card issuers can emend a per annum rate of interest but they must inform clients at least 45 days prior its entry into force.

A variable rate fluctuates depending on the base one and at any time can rise or fall. For example, when the Federal Reserve System decreases rates in interest then the variable annual one is likely to drop as well.

Credit unions and cards with low percentage rates

Credit unions provide a variety of the best low percentage cards. If you don't mind jumping over a few minor hurdles then you can benefit from interest of a lower level compared to offers of the major issuers.

For obtaining a card from a credit union applicants are usually required to become members. Please note that many unions do not charge membership fees and grant a number of qualification options such as residency or employment.

Low rate of interest getting

Despite no surefire way for receiving a low percentage rate exists, applicants can follow the steps to increase their chances of getting the best option. Consumers possessing good or excellent rating of credit (score of 670 and above) are more likely to obtain rates of a lower range compared to clients with fair or bad credit scoring.

For example, two people apply for a card with the 14.99%-24.99% variable per annum percentage. The first person has excellent credit history and the second has bad one. Most likely, the first applicant will be granted a rate of about 14.99% while the second one will be offered a higher rate close to 24.99%.

This 10% difference can lead to a significant discrepancy in interest costs provided the debt on a credit card is kept.

Let's compare a consumer with a per annum interest of 24.99% and another one with 14.99%. They both are have the balance of $5,000 on their cards and intend to pay it off within 12 months. The following is a rough estimation of the percentage to be accrued over a 12-month period for the cardholders:

  • $415 for the client with excellent score
  • $702 for the client with bad rating

Thus, the second holder will pay $287 more percentage due to a higher interest.

Important! The key factor for achieving credit rating of a good or an excellent level is to pay all bills timely and in full and for this reason, auto payment can be a useful advantage. The number of applications for new credit cards should be limited as far as possible as well as usage of small credit limit amounts (the less the better).

Pros and cons inherent to low percentage credit cards

Strong sides include

  • Lower rates can mean less monthly payments of interest compared to higher percentage credit cards.
  • Sometimes cards may also have low fees which means they can be suitable for consumers looking for a no-frills card with no added features
  • Sometimes an even lower rate balance transferring offers are applied

The list of weak sides has

  • Low rate cards are generally not attractive to people seeking reward programs although there may be exceptions.
  • They usually do not offer the same benefits and bonuses as some premium cards. For example, they normally do not include free travel insurance

Comparison of low percentage credit cards

There are several factors to consider when searching a proper option which include:

  • An initial purchase rate and a return rate (the purchase one is normally applied after any introductory period) on the card
  • Charges such as any annual, late or balance redirecting fees
  • Whether the card provides any benefits or bonus features
  • If a promo for transferring balance is provided then its exact duration and rate of interest used after should be specified.
  • Percentage-free period. While the current maximum value on credit cards equals to 110, there are some options having a zero value which means the interest accrual starts immediately.

Choosing between credit cards providing low rate in interest, transferring balance or purchasing with an annual 0% rate

Although any type of these cards can help in terms of finance, a customer's specific circumstances will determine the best option. Each kind has a slightly different impact because cards with low percentage rate are usually geared towards providing a lower current per annum interest; 0% rate cards do not include interest over a set time period and cards for balance transferring are aimed to a rather fast debt repayment. Regarding the cardholder type there may be an obvious best choice:

Loan creator. If an applicant starts out with a healthy financial position but still wants to improve credit rating then a card with low percentage or a purchasing card with a zero yearly rate may be opted. These cards often have features for boosting a credit and any early mistakes will be mitigated by the lower per annum rate of interest.

Debt owner. For anyone having credit card balances as well as other types of unsettled transferable balance, a card for balance redirecting can become an appropriate option. Customers can streamline their financial situation and the right to past failures thanks to moving debts to interest-free accounts. They are able to provide significant savings due to ongoing payments on debts avoidance which is probably more beneficial than receiving rewards or low current annual income.

Traveler. In case a credit rating is proper for taking advantages of its reward system to earn miles, hotel stay bonuses and similar benefits then applicants should pay attention to traveling credit cards. One more smart savings option is a card strategy developing that offers an initial 0% annual rate on purchases which is a great opportunity to pay for trips in advance and reduce the balance over time.

Repairman. Anyone planning home or yard renovation should study various cards and consider any welcome suggestions. A zero percentage shopping card allows to buy high-value items with no interest so its holder can schedule their value to be paid out over during the term of the offer. Additionally, some options guarantee reward in the form of cashback or early spending points.

Permanent cardholder. A low percentage card is probably the best bet for applicants who don't have any transferable debts, are not planning to make a major purchase anytime soon and redeem their balance timely and in full. This way, they don't have to worry about interest charges and can even get additional value out of their cards by opting out of APR introductory offers.

List of the most appropriate credit cards providing low percentage

Citi® Diamond Preferred cards

This option is very attractive for those looking to make a transfer of balance. An 18-month 0% per annum rate of interest for transfers made during 4 months after setting up an account can help to cover the remaining balances. Afterwards the 14.74%-24.74% yearly variable percentage is applicable.

Discover® it Miles credit cards

This card provides unlimited earning of 1.5 miles for a dollar spent for every buying that can be redeemed for cash or travel. All the miles earned with Discover it® Miles are automatically matched at the first year's end. No annual charge and cardholders receive a 14-month initial 0% annual rate on purchasing (afterwards the 11.99%-22.99% per annum variable is applied).

The card Discover® it Cash Back

Clients get a 14-month starting annual rate of 0% on buying and transferring balance. Following the variable rate of 11.99%-22.99% per annum takes into force. Cashback rewards make the deal sweeter by offering 5% cashback every quarter across alternating categories like gas stations, restaurants, groceries, Amazon.com, PayPal® to the extent of a quarterly maximum upon activation. The rest of purchases grant 1% unlimited cashback. The absence of a yearly fee and received cashback is matched at the first year's end.

Blue Cash Everyday credit cards introduced by American Express®

The most creditworthy applicants are offered low annual rates but this card is best suited for consumers looking to get cash for every day purchasing. Holders receive 3% cashback for yearly spending to $6,000 in supermarkets and 1% after; 2% back at supermarkets, gas stations; and 1% on other purchases. New clients are drawn the cashback of $200 for $1,000 spending over the first 3 months.

The card Chase® Freedom Unlimited

This option offers an annual 0% on all purchasing during the first 15 months and with the following variable rate of 14.99-23.74% per annum. Cardholders receive 5% cashback using the Chase® Ultimate Rewards for booking hotel stays or making other travel purchases. 3% cashback is provided for paying at restaurants and pharmacies as well as 1.5% for the rest purchasing.

The credit card Chase ®Freedom Flex

A 15-month starting a per annum rate of 0% can be attractive when a client needs time to pay for a large purchase with no interest charged. Afterward the 14.99%-23.74% variable rate is applied. Cardholders earn up to 5% cashback in certain bonus categories and do not pay an annual commission.

Discover® it Chrome

Cardholders are given a 14-month starting annual rate of 0% on transferring balance and purchasing. The 11.99%-22.99% per annum variable takes in the force after. Gas and restaurant purchases earn 2% cashback on combined purchases up $1,000 on a quarterly basis and 1% cashback on remained purchasing. Annual fees are not charged.

Citi® Rewards+ cards

An initial 0% yearly rate in interest on purchasing and balance redirecting during the first 15 months is provided. Holders earn 12 points per 1 dollar at gas stations and groceries and additionally 15,000 points of bonus upon $1,000 on the card spending over the first 3 months.

An 18-month duration offer by Citi® Double Cash Cards

The initial 18-month per annum rate of 0% on transferring balance offer is this card's major benefit. Afterwards the variable rate between 13.99%-23.99% is applicable. Customers receive 1% cashback while purchasing with the card and 1% when paying invoices. Also, in case of having an accidental balance the per annum interest for the bonus card is below average.

The credit card Wells Fargo® Visa® Signature

Applicants having good credit rating typically get a low yearly rate in interest on purchasing but bonus cashback is the card's real appeal. Clients earn 5 points for 1 dollar to the extent of $12,500 paid for gas, food and pharmacy buying over the first 6 months and in the meantime the rest of purchases are worth 1 point for 1 dollar spent.

What to expect from such type of credit cards?

Per annum rate of interest. All cards of this type range from 0% to 15.99% per annum.

Starting annual percentage. Approximately 17% of cards in this category propose an about 18-month 0% per annum period. 0% during 14 or 15 months offers are more common and worth checking.

Offers for transferring balances Around a third of the cards in this category has an 18-month or even a longer duration offer of 0% balance redirecting. The rest provide transfers of balances at a rate of 0% during 14 or 15 months.

Annual charge. Normally this type of credit cards does not require paying yearly fees.

Inquiry of credit rating. More than half of these cards claim the presence of excellent or good credit rating but options are available for medium, fair, limited or new credit as well.