Best Low-Interest Credit Cards of June 2024 | Bankrate (2024)

Credit range

Sort by

A low-interest credit card is defined by its APR (annual percentage rate), which can be either variable or fixed. If the low end of the variable percentage is around 18 percent, it generally qualifies as a low-interest card. Most credit cards are variable-rate credit cards, meaning their APRs fluctuate alongside the prime rate.

Paying your balance on time and in full every month is the surest way to avoid interest altogether, and this method is what we recommend first. Alternatively, a low-interest card could help you pay less interest if you carry a balance.

Understanding your card’s interest rate

Although annual percentage rates are expressed on a yearly basis, your lender will charge you each month you carry a credit card balance. It can appear fairly straightforward at first glance, but understanding how that percentage applies to your current balance requires some calculations. For example, if your average daily balance for the billing cycle was $500 and your card’s APR is 15 percent, you’ll find that you owe $6.25 in interest for the month. The formulas are as follows:

Credit card APR ÷ 365 days = Daily periodic rate

(Previous cycle’s unpaid balance + Total purchases) ÷ Number of days in billing cycle = Average daily balance
Daily periodic rate x Average daily balance x Number of days in billing cycle = Total interest charge for the month

How much could you save with a low-interest card?

One Bankrate survey found that 49 percent of cardholders were “debt revolvers” in 2023. As credit card APRs steadily climb, intentionally picking a card with a below-average interest rate could give your wallet a bit of a break.

Current credit card interest rates

Still unsure if a low-interest credit card is right for you? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.

What people are saying about low-interest credit cards

As rising inflation remains a concern, many people online are looking for a low-interest credit card. While big-name issuers dominate the market, credit unions are the go-to recommendation for finding a low-interest credit card for users in the r/CreditCards subreddit and myFICO Forums.

Even Bankrate writer, Garrett Yarbrough, keeps his credit union card because its interest rate is lower than many other cards’ rates.

“Its greatest strength is one of the main reasons to have a credit union card: the interest rate is far less than the typical APR on a card from a major issuer,” he says. “In fact, my credit union card’s current purchase APR is 12.75 percent variable — much less than the current average interest rate and even the 17 percent to 19 percent minimum APR you see on popular cards nowadays.”

Credit union cards typically don’t have flashy rewards, but their business model allows them to pass savings back to customers in the form of lower rates. But if you want the lowest interest rate possible, be prepared to give up rewards.

“You can get some pretty low rates for credit cards, but they usually are from smaller banks/credit unions and won't offer many rewards,” one r/CreditCards user commented*.

Although online users and Bankrate experts recommend always paying in full and taking advantage of your credit card’s grace period to not pay interest altogether, the right low-interest card can mitigate unavoidable charges.

“I still try to avoid carrying a balance since I don’t want to owe interest or hurt my credit score,” Yarbrough says of his low-rate card. “But my credit union card has definitely saved me money in a pinch before, like on college textbooks while between paychecks and on hefty moving expenses when I needed to stay liquid for a month or two."

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Be sure to check the issuer's website/terms and conditions for all up to date content. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

In the news: Experts still foresee a possible recession in the near future

Around 2 out of 3 adults in the U.S. between the ages of 18 and 29 had at least one credit card in 2023. And while many credit cards are available for almost any type of person, approval isn’t guaranteed.

We dug into our data and looked at the average approval ratings for Bankrate users applying for credit cards on our site.

According to our proprietary data, Bankrate user approval rate for the low-interest credit cards on our site peaked around 71 percent in September 2023 before declining in November and December to 66 percent and 58 percent, respectively. This could be due to holidays, when cardholders may spend more and have higher balances. Then approval rates increased to 64 percent as of January 2024, showing a promising trend.

When evaluating the best balance transfer and low-interest cards, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that fit the priorities of a diverse group of cardholders.

This includes users who need to carry a balance long term, need as much time as possible to chip away at debt or are looking for maximum long-term value via rewards.

We analyzed over 100 of the most popular balance transfer and low-interest cards and scored each based on its introductory APR, intro APR period length, ongoing APR, balance transfer fee, perks and more to determine whether it belonged in this month’s roundup.

Here’s a quick look at how our rating methodology breaks down for low-interest cards:

• Intro APR and offer length for new purchases40%

• Ongoing APR35%

• Intro APR and offer length for balance transfers13%

• Balance transfer, annual and other fees12%

Ask the experts: Is it possible to get a card with a low interest rate if you have bad credit?