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These are the Best 0% APR and Low Interest Credit Cards of 2021 – SeniorResourceHub Reviews

Our Experts Selected the Best Cards to Enjoy Interest Free Payments Until 2023.

A low-interest credit card saves you money by reducing the cost of debt. When you pay less interest, you can pay back what you’ve borrowed faster. A card with a 0% introductory APR (Annual Percentage Rate) period will save you more interest in the short term. Therefore, in this article we present the 9 credit cards with the lowest interest rate in the United States (updated in August 2019). However, so that you can choose the one that suits you best, it would be useful to know some preliminary details regarding these cards. (The prices and fees in this article are in dollars and are subject to change).

Understanding Interest Rates and APR Rates

The annual percentage rate, or APR, is the interest rate that your credit card issuer charges for your card debt. Some cards charge a one-time fee for all debts on the card; others charge different rates for different types of debt (purchases, cash advances, etc.). APRs are listed on your monthly statement. Issuers typically set their rates a certain number of percentage points above the prime rate, which is the rate that large banks charge their best customers. For example, your rate could be “premium + 12 points.” If the prime rate were 5.5%, your APR would be 17.5%. With the exception of introductory 0% APR offers or interest rate offers, you won’t find a credit card APR lower than the prime rate. Although interest rates are expressed in annual terms, they are generally charged on a daily basis. An annual rate of 17%, for example, would translate into a daily rate of approximately 0.0466%. So for every $1,000 of debt, you would pay about 47 cents a day in interest.

How to Avoid Paying Interest in Full on Your Credit Card

Most credit cards offer a “grace period” that allows you to avoid paying interest.

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  • If you pay your balance in full each month, you will have no interest on your purchases.
  • If you leave debt month to month, the interest will begin to accumulate as soon as it reaches your statement.

If you are one of those that the credit card industry refers to as a “transactor”; that is, someone who uses their card for convenience and rewards and you pay the bill in full every month, then your APR is practically irrelevant, because you will never pay even 10 cents of interest. On the other hand, if you are a “revolver”, or someone who uses cards to buy items, cannot pay his full account statement and has debt every month, then your APR is very important, because it dictates how much you pay in interest and thus will set the stage for your future abilities to make payments on time. A good rule in general is to never use a credit card to make a purchase for something that isn’t critical if you do not have the cash to pay for it by the end of that billing cycle. Another tip worth mentioning that will help to keep your payments on time is to request a new due date that falls around the same time you get paid each month helping to ensure funds availability when the bill is due.

What is the Difference Between Interest and APR?

When we talk about credit cards, there is no difference between the interest rate and the APR: they are the same. This leads to another question: Why do credit card issuers refer to it as the “APR” instead of the interest rate? Mainly because federal truth-in-loans laws require it. The APR is the “real” annual cost of borrowing money, and it includes not only interest on the money borrowed, but also fees and other charges. With some financial products, such as mortgages, the APR can be significantly different from the stated interest rate. Those other charges are not included in the credit card APR calculation, largely because issuers cannot predict who will have to pay them or how much they will pay.

Helpful Glossary of Terms Related to APR

Purchase APR: This is the rate your card charges when you pay for items with it. Most credit cards offer a grace period: if you pay the balance in full each month, you won’t have to pay interest on purchases. If you roll over the debt from one month to the next, the interest will start to accrue.

Balance Transfer APR: This is the debt rate that you have transferred to the card from another card and / or issuer. To make your business more attractive, card issuers often offer a low rate, even 0%, on the transferred debt.

Cash Advance APR: This is the rate charged when you use your credit card to obtain cash from an ATM. Interest generally begins to add up to cash advances immediately, so grace periods do not apply.

Introductory APR: Sometimes called “interest rate.” This is a low interest rate that is offered when you first open your account. Many credit cards offer people with good credit a 0% introductory rate on purchases of a year or more.

Ongoing APR: This is the “regular” rate that takes effect after any introductory APR period expires.

Variable APR: Most credit card interest rates are tied to the prime rate. When the prime rate increases (or decreases), your credit card interest rate will generally increase (or decrease). “Variable APR” just means that your current rate is not permanent and could change if the Prime Rate does. Once these points are clarified, and without further ado, let’s see our list of 9 credit cards with the lowest interest rate in the US.

Credit Cards With the Lowest Interest Rates

Below are a few of the top picks we have come up with for 2021 when searching for all credit cards with either low or no annual fees and up to 2% cash back on most purchases. The order these cards appear does not reflect best or least, they are simply placed in random order. Read through each until you find one that meets your needs and make sure to always read the terms when applying as terms are subject to change often with little to no prior notice.

U.S.Bank Visa® Platinum Card

  • Annual fee: $95
  • Regular APR (Annual Percentage Rate): 14.49% – 25.49%. Variable APR.
  • Introductory APR: 0% on purchases and balance transfers for 20 billing cycles.
  • Recommended credit score: 690-719 (good).

Why Choose it?: If you need to extend the payments of a purchase as long as possible without interest, the U.S. Bank Visa® Platinum Card is the one.

Advantage: It gives you a good time to pay for an important purchase. Your 0% period is longer than the 18 billing cycles available elsewhere.

Disadvantages: This card doesn’t offer rewards, so there isn’t a very compelling incentive to keep using it after the 0% intro period runs out.

Card Specifications Include

  • 0% introductory APR on purchases and balance transfers for 20 billing cycles. After that, a variable annual percentage rate (currently 14.49% – 25.49%).
  • Flexibility to choose a payment due date that fits your calendar.
  • Get up to $600 of cell phone protection (subject to a $25 deductible) against covered damage or theft when you pay your monthly cell phone bill with this card.

Certain terms, conditions and exclusions apply.

HSBC Gold Mastercard®

  • Annual fee: $0
  • Regular APR (Annual Percentage Rate): 13.24%, 17.24% or 21.24%. Variable.
  • Introductory APR: 0% introductory APR on credit card purchases and balance transfers for the first 18 months from account opening.
  • Recommended credit score: 690-850 (good-excellent).

Why buy it?: Its attractive 0% introductory period on purchases and balance transfers and its late payment waiver make this credit card worth considering.

Advantage: The introductory interest-free period on the HSBC Gold Mastercard® credit card is nice and long: 0% introductory APR on credit card purchases and balance transfers for the first 18 months from account opening, then a variable APR of 13.24%, 17.24% or 21.24%. The issuer’s late fee waiver is a nice break for chronically forgotten ones: the fee is waived from your first late payment and any more late payments for 12 billing periods since your last waiver.

Disadvantages: The long introductory period without interest is great for purchases, but it comes at a cost for balance transfers: 4% (minimum $10), which adds to the large balances. The late payment waiver could encourage bad behavior that could affect your credit scores. No rewards or sign-up bonuses.

Card Specifications Include

0% introductory APR on purchases and balance transfers for the first 18 months from account opening. Then a variable annual percentage rate of 13.24%, 17.24% or 21.24% will be applied.

  • No APR penalty
  • Late fee waiver
  • No overseas transaction fees
  • $0 Annual fee
  • $0 liability for unauthorized purchases

Capital One® Quicksilver® Cash Rewards

  • Annual fee: $0
  • Regular APR (Annual Percentage Rate): 16.24% – 26.24%. Variable APR.
  • Introductory APR: 0% on purchases and balance transfers for 15 months
  • Recommended credit score: 690-850 (good-excellent).

Why buy it?: Few cards offer such an attractive combination of rewards rate, redemption simplicity, 0% introductory period, and sign-up bonus as this card.

Advantage: The Capital One® Quicksilver® Cash Rewards credit card gives you 0% on purchases and balance transfers for 15 months, then the current annual percentage rate (from 16.24% to 26.24%). This card pays a 1.5% cash back on every purchase and offers a cash signup bonus: $150 one time after spending $500 on purchases within 3 months of account opening. It is also a good travel companion, as it does not charge transaction fees abroad.

Disadvantages: Today, a flat cash-back rate of 1.5% is pretty routine. Depending on how you spend, you may be able to rack up more rebates with a bonus category cash back card.

Card Specifications Include

  • One-time $150 cash bonus after spending $500 on purchases within 3 months of account opening.
  • Get an unlimited 1.5% cash back on every purchase every day.
  • No rotating categories or registrations are needed to earn cash rewards. Also, the refund will not expire during the lifetime of the account and there is no limit to how much you can earn.
  • 0% introductory APR (Annual Percentage Rate) on purchases for 15 months. Subsequently, 16.24% to 26.24% variable APR.
  • 0% introductory APR on balance transfers for 15 months. Subsequently, 16.24% to 26.24% variable APR. 3% fee on amounts transferred within the first 15 months.
  • You don’t pay any annual fees or foreign transaction fees.

Chase Freedom®Card

  • Annual fee: $0
  • Regular APR (Annual Percentage Rate): 17.24% – 25.99% Variable APR.
  • Introductory APR: 0% on purchases and balance transfers for 15 months.
  • Recommended credit score: 690-850 (good-excellent).

Why buy it?: Free money from a sign-up bonus is always good, and the long 0% introductory APR period makes Chase Freedom® a solid option for financing a major purchase.

Advantage: Chase Freedom® offers you a little bit of everything. In addition to a $0 annual fee and a long 0% introductory APR period on purchases and balance transfers, it offers a nifty sign-up bonus – earn a $150 bonus after spending $500 on purchases for the first 3 months of opening. Get 5% cash back of up to $1,500 per quarter in spending on revolving voucher categories, including gas stations, grocery stores, and restaurants. All other expenses get 1% reimbursement.

Disadvantages: It can be a hassle to track down bonus rewards categories and opt for them every quarter.

Card Specifications Include

  • Earn a $150 bonus after spending $500 on purchases in the first 3 months from account opening.
  • Get 5% cash back with up to $1,500 in combined purchases in bonus categories every quarter you activate Enjoy new 5% categories every quarter!
  • Unlimited 1% cash back on all other purchases.
  • 0% auto-enter APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24-25.99%.
  • 3% initial balance transfer fee when you transfer a balance during the first 60 days your account is open, with a minimum of $5.
  • No annual fee.
  • Cash back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
  • Score updated weekly with Credit Journey℠.

Our Concluding Thoughts

Conclusion paragraph: In this article, we have provided you with a list of the best low interest credit cards that are currently available. Make sure to take time and carefully consider which one is right for your needs before making any decisions in order to secure an affordable long term loan. We hope that these reviews will help you find the perfect card for your personal finance goals! What do you think about our choices? Sign up for our monthly news letter and get updated card selections, bonuses, special offers and more!

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