If you’re carrying a balance or trying to avoid high interest fees, a low-interest credit card could save you money. Some cards offer 0% introductory APRs, while others come with low ongoing rates and even cashback rewards.
In this guide, we break down the types of low-interest credit cards, their pros and cons, and highlight top card picks for 2025.
✅ Types of Low-Interest Credit Cards
| Type | Description | Ideal For |
|---|---|---|
| Rewards Credit Cards | Earn cashback, points, or miles. May come with perks. | Users who want low interest + rewards |
| 0% Introductory APR Cards | No interest for 12–21 months. Usually charge a 3–5% balance transfer fee. | People who plan to carry a balance short term |
| Secured Credit Cards | Require a refundable deposit. Generally for credit-building. | Individuals with no or poor credit |
👍 Pros & 👎 Cons of Low-APR Cards
Pros:
- Save on interest: Great if you carry a balance regularly.
- 0% APR offers: Avoid interest on balance transfers or new purchases for a limited time.
- Improved budgeting: Some cards convert balances into fixed monthly payments.
Cons:
- Higher credit score required: Best rates usually need a 670+ FICO score.
- Fewer options: Not many cards qualify as true low-interest.
- Rewards trade-offs: Low interest cards may skip cashback or bonuses.
🕒 When to Get a Low-Interest Credit Card
- You’re carrying existing debt.
- You want to consolidate balances from other cards.
- You need flexibility in case of emergency expenses.
🔍 How to Choose a Low-Interest Credit Card
- Decide between low APR vs 0% intro offer.
- Compare APRs but also check fees and transfer terms.
- Factor in annual fees—they may cancel out savings.
- Check penalty APRs and late fees.
- Look at rewards (if any), but don’t expect high earning rates.
🏆 Top Low-Interest Credit Cards for 2025
1. Upgrade Cash Rewards Visa®
- APR: 14.99% – 29.99% variable
- Rewards: 1.5% unlimited cash back (applied as a statement credit)
- Annual Fee: $0
- Credit Needed: Fair to Good
- Highlights: Combines credit card flexibility with a personal loan structure. Great for budgeting.
2. Applied Bank® Secured Visa® Gold Preferred
- APR: 9.99% fixed
- Annual Fee: $48
- Deposit: Min. $200
- Rewards: None
- Credit Needed: No credit check
- Highlights: Low fixed rate makes it a solid option for building credit. No app or modern tools.
💡 Pro Tips to Maximize Your Low-Interest Card
- Pay more than the minimum: Especially for installment-based cards like Upgrade.
- Avoid late payments: To keep your rate low and protect your credit score.
- Balance transfer? Pay it off before the intro period ends.
- Watch out for hidden fees: Annual or transfer fees can sneak up.
Final Thoughts
A low-interest credit card can be a smart financial tool—if used responsibly. Whether you’re consolidating debt, building credit, or simply trying to cut down on interest payments, there’s likely a card that fits your needs.