Monday, 24 June 2019

7 Low Interest Rate Credit Cards – August 2018

7 Low Interest Rate Credit Cards – August 2018
01 Aug
9:37

Carrying a balance on your credit card is never ideal, but sometimes it’s unavoidable. And with credit card interest charges that can be upward of 25.00% APR, it can be hard to get out of debt because a large portion of your payment goes to interest.

Currently, you may find yourself struggling to pay off your balance, but worry not — there are low interest cards that have APRs starting at around 6%.

Low-interest cards are a great way to save money on interest when you find yourself carrying a balance. The APRs on these cards max out around 18% on average. Some low-interest cards mentioned here even have 0% APR intro periods that are helpful if you have an existing balance on a credit card and want to transfer it, or if you plan on making purchases that you need several months to pay off.

The seven main cards in this post are from credit unions, which often have lower rates than large banks. But they require memberships, which are sometimes restricted to certain states. In this post, we’ll explain the seven lowest interest-rate credit cards and what’s required to qualify. These cards are based on a usage period of around 24 months or more, which is typically not long enough for most intro 0% APR cards.

7 low interest rate credit cards

Visa® Titanium Signature Rewards Card from Andrews Federal Credit Union

The Visa® Titanium Signature Rewards Card from Andrews Federal Credit Union has the lowest ongoing APR on our list. If you qualify for the lowest rate and end up carrying a balance, you may be charged little interest (compared with higher APR cards). This card is a good option if you have existing debt on a credit card, because you can transfer it during the balance transfer intro period.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 12 months on purchases
  • Intro balance transfer APR: 0% for 12 months on balance transfers processed within 90 days of account opening
  • Balance transfer fee: 1.5% of the transfer amount or $50; whichever is greater

How to qualify: Anyone can apply for this card, regardless of residence. If you don’t meet one of the several eligibility requirements, you can join the American Consumer Council for a one-time $5 donation if you have used a major consumer product or service in the past 12 months, such as a motor vehicle, insurance, or housing.

TruWest Visa Platinum Card

The regular purchase APR on the TruWest Visa Platinum Card has a wider range than the other cards on this list. However, this card has the longest 0% intro APR period from a credit union at 0% for 18 billing cycles on purchases and balance transfers. This is a large amount of time for you to carry a balance interest-free.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 18 billing cycles
  • Intro balance transfer APR: 0% for 18 billing cycles
  • Balance transfer fee: 3%

How to qualify: Unfortunately, not everyone can apply for this card. It is restricted to people who live, work, own a business, or go to school in select Arizona and Texas communities or who work for select employers. You can read more about membership eligibility on TruWest’s website.

Visa® Platinum Card from Trustmark Bank

The Visa® Platinum Card from Trustmark bank has a great low APR range. This is the best range on the list when considering both the minimum and maximum APR, and it benefits people who may not have the best credit because the highest interest rate is still lower than most credit cards. So what’s the catch? Unfortunately, this card has restricted membership (see below for details) and the 0% APR intro periods are very low compared to other cards.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for the first 6 billing cycles
  • Intro balance transfer APR: 0% for the first 6 billing cycles
  • Balance transfer fee: None

How to qualify: Anyone can apply, however you can’t apply online. You either have to go to one of their locations or call and have an application mailed to you.

BECU Visa® Card from Boeing Employees CU

The BECU Visa® Card from Boeing Employees CU is an overall standout card with a reasonable APR and great additional perks. For example, there is a Reprice Program where BECU will lower your rates as your credit score improves. This is a great feature, especially for people who don’t qualify for the lowest rate. Additionally, there are limited fees, such as no balance transfer fee — allowing you to maximize savings when you transfer debt from another card.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 12 months
  • Intro balance transfer APR: 0% for 12 months
  • Balance transfer fee: None

How to qualify: This card has restricted membership with several ways to qualify: you need to live in Washington State or select counties in Oregon, have a relationship with select employers or associations, or have a business or organization that meets certain requirements. Find out more about membership here.

Visa® Advantage Card from NEFCU

The Visa® Advantage Card from NEFCU can be a decent option for Long Islanders who may carry a balance at some point. Note that the APR range is higher than other cards on this list, but your best option depends on cards’ membership criteria. The intro period for this card is sub par compared to others because the APR is greater than 0%.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 1.99% for 12 months (as low as 9.49% thereafter)
  • Intro balance transfer APR: None
  • Balance transfer fee: None

How to qualify: This card is open to all Long Islanders. That means if you live, work, or attend school in Nassau or Suffolk counties in New York, you may qualify. You can also gain membership through a family member. Click here for more info on eligibility.

TruWest Platinum Points Visa Rewards Card

The starting APR for the TruWest Platinum Points Visa Rewards Card is a bit higher than other low interest cards, but the max APR is fairly low. Similar to the TruWest Visa Platinum Card, the TruWest Platinum Points Visa Rewards Card has a long 0% APR intro period of 18 months. This card also comes with a rewards program where you can automatically earn up to one point per dollar spent, though we recommend using this card to pay down debt and not earn rewards.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 18 months
  • Intro balance transfer APR: 0% for 18 months
  • Balance transfer fee: 3%

How to qualify: Like the other TruWest card, this card is restricted to people who live, work, own a business or go to school in select Arizona and Texas communities or who work for select employers. You can read more about membership eligibility on TruWest’s website.
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The Visa® Platinum Credit Card from NIHFCU has the highest starting APR of all the cards on this list. However, there is a decent 0% APR intro period of 12 months, and the balance transfer fee is lower than average.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 12 months
  • Intro balance transfer APR: 0% for 12 months
  • Balance transfer fee: $10 or 2% of the amount of each balance transfer, whichever is greater

How to qualify: This card restricts membership to people in the biomedical and healthcare industries in Md., N.C., Va., W.Va., or Washington D.C. You can also qualify if a family member is a current NIHFCU member. Visit NIHFCU’s site for more details.

Other options

Below, we’ve compiled a few options if you want a 0% APR intro card or if you want to consider a balance transfer card. All of these cards come from major banks, so anyone can apply.

Cards with a 0% APR intro period

The Citi® Diamond Preferred® Card – 21 Month Balance Transfer Offer one of the longest intro 0% periods for balance transfers on the market, at intro 0%* for 21 months on Balance Transfers*. This is over a year and a half for you to rid yourself of debt. Note that there is a balance transfer fee of 5% of each balance transfer; $5 minimum. There is also an intro 0%* for 12 months on Purchases*. After the intro periods end, the APR is 14.74% – 24.74%* (Variable).

Cards with a 0% APR balance transfer intro period

Sphere® Credit Card from Santander

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Sphere® Credit Card from Santander

Regular Purchase APR
14.24% to 24.24% Variable
Intro Purchase APR
0% intro APR on purchases for the first 18 billing cycles
Intro BT APR
0% intro APR on balance transfers for 18 billing cycles if taken within the first 90 days of account opening
Annual fee
$0
Rewards Rate
1 reward point for every dollar spent, with no limits
Balance Transfer Fee
$10 or 4% of the amount of each transaction, whichever is greater

The Sphere® Credit Card from Santander has one of the longest balance transfer intro periods in our database at 0% intro APR on balance transfers for 18 billing cycles if taken within the first 90 days of account opening (after, 14.24% to 24.24% Variable APR). Although this is a great amount of time for you to pay off transferred debt, it comes with a hefty balance transfer fee at $10 or 4% of the amount of each transaction, whichever is greater. This is something to consider before choosing a card, but the balance transfer fee may be worth it if you’re saving money from high-interest payments with your current card. Purchases can also benefit from a 0% intro APR on purchases for the first 18 billing cycles (after, 14.24% to 24.24% Variable APR). There is also a rewards program: earn 1 reward point for every dollar spent, with no limits. However, we recommend using this card to pay off debt and not just to earn rewards.How to qualify: This card is only available to people who live in: Conn., Washington D.C., Del., Maine, Md., Mass., N.H., N.J., N.Y., Pa., R.I., or Vt.

Chase Slate®

The Chase Slate® is one of our favorite balance transfer cards. It offers 0% Intro APR on Purchases for 15 months and 0% Intro APR on Balance Transfers for 15 months (after 16.74% – 25.49% Variable APR). This isn’t the longest intro period, but this card comes with a standout feature of an intro Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater. This can save you on the typical 2-5% balance transfer fee many other cards charge.

The information related to the Chase Slate® has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

The bottom line

If your goal is to reduce the amount of interest you pay on your credit card debt, look at cards with low APRs and membership requirements you can meet. Remember that your credit score will be a significant factor in the APR you receive, so be sure to look at both ends of the APR ranges when comparing cards since you may not receive the lowest rate.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Alexandria White

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Source: https://www.magnifymoney.com/blog/best-of/7-low-interest-rate-credit-cards1169259790/

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