BEST OF
Best 0% APR and Low Interest Credit Cards of April 2021
» LOOKING FOR CREDIT CARDS THAT OFFER PRE-QUALIFICATION OR PREAPPROVAL WITHOUT A HARD PULL? Click here to see options.
ALSO CONSIDER: Best credit cards of 2021 || Best balance transfer credit cards || Best cash back credit cards || Best rewards credit cards
A low-interest credit card saves you money by reducing the cost of debt: When you're paying less in interest, you can pay back what you've borrowed more quickly. A card with a 0% intro APR period will save you the most on interest in the short term. Look for one with an introductory interest-free period longer than a year. If you tend to carry a balance most months, a card with a low ongoing interest rate will work to your advantage in the long run.
Some of our selections for the best 0% credit cards can be applied for through NerdWallet, and some cannot. Below, you'll find application links for the credit cards from our partners that are available through NerdWallet, followed by the full list of our picks.
» LOOKING FOR CREDIT CARDS THAT OFFER PRE-QUALIFICATION OR PREAPPROVAL WITHOUT A HARD PULL? Click here to see options.
ALSO CONSIDER: Best credit cards of 2021 || Best balance transfer credit cards || Best cash back credit cards || Best rewards credit cards
A low-interest credit card saves you money by reducing the cost of debt: When you're paying less in interest, you can pay back what you've borrowed more quickly. A card with a 0% intro APR period will save you the most on interest in the short term. Look for one with an introductory interest-free period longer than a year. If you tend to carry a balance most months, a card with a low ongoing interest rate will work to your advantage in the long run.
Some of our selections for the best 0% credit cards can be applied for through NerdWallet, and some cannot. Below, you'll find application links for the credit cards from our partners that are available through NerdWallet, followed by the full list of our picks.
Best 0% APR and Low Interest Credit Cards From Our Partners
Our pick for
Long 0% intro APR period
Annual Fee
$0
Regular APR
14.74% - 24.74% Variable APR
Intro APR
0% intro APR on Purchases and Balance Transfers for 18 months
Rec Credit Score
690-850Good - Excellent
- 0% Intro APR for 18 months on purchases from date of account opening and 0% Intro APR for 18 months on balance transfers from date of first transfer. After that the variable APR will be 14.74% - 24.74%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater
- Get free access to your FICO® Score online.
- With Citi Entertainment®, get special access to purchase tickets to thousands of events, including concerts, sporting events, dining experiences and more.
- Shop with confidence knowing that you have dependable protection benefits, including $0 Liability on Unauthorized Purchases and Citi® Identity Theft Solutions.
- The standard variable APR for Citi Flex Plan is 14.74% - 24.74%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
Pros
The long 0% period is this card's defining feature, giving you more than a year to whittle down debt.
Cons
Because it doesn't earn rewards, there's not a lot of ongoing value to the card once that 0% period runs out.
Why We Like It
The Citi® Diamond Preferred® Card is all about the long 0% intro APR period. It's about as much breathing room as you'll find anywhere.
Our pick for
0% intro period and ongoing cash back
Annual Fee
$0
Regular APR
14.99% - 23.74% Variable APR
Intro APR
0% intro APR on Purchases for 15 months
Rec Credit Score
690-850Good - Excellent
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
- Earn unlimited 1.5% cash back on all other purchases.
- Earn 5% on travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1.5% on all other purchases.
- No annual fee.
- 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.
- No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.
See if you qualify for a better offer with Chase:
Pros
You get an introductory 0% intro APR on Purchases for 15 months, and then the ongoing APR of 14.99% - 23.74% Variable APR. This card earns 5% cash back on travel booked through Chase; 3% cash back at restaurants and drugstores; and 1.5% on other purchases. New cardholders can also get a cash bonus.
Cons
Depending on your spending patterns, you might earn more rewards with a card that pays higher rates in specific categories. Still, this card's combination of rewards and 0% period makes it a formidable choice.
Why We Like It
The Chase Freedom Unlimited® starts you out with an excellent 0% intro APR period (and a nice bonus offer) and delivers ongoing value with its cash back rewards.
Our pick for
0% intro period and bonus category cash back
Annual Fee
$0
Regular APR
11.99% - 22.99% Variable APR
Intro APR
0% intro APR for 14 months on purchases and balance transfers
Rec Credit Score
690-850Good - Excellent
- INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
- Plus, earn unlimited 1% cash back on all other purchases - automatically.
- Redeem cash back in any amount, any time. Rewards never expire.
- Use your rewards at Amazon.com checkout.
- #1 Most Trusted Credit Card according to Investor’s Business Daily.
- No annual fee.
- Discover is accepted nationwide by 99% of the places that take credit cards.
Pros
You get a 0% intro APR for 14 months on purchases and balance transfers, and then the ongoing APR of 11.99% - 22.99% Variable APR. You'll earn 5% cash back on rotating bonus categories that you activate (on up to $1,500 in spending per quarter) and 1% back on all other spending. All the while during your first year, you're earning Discover's signature new-cardholder bonus.
Cons
The intro period is a bit shorter than the 15-18 months commonly offered by other cards, but it's still well over a year. Rewards-wise, it can be a hassle to track bonus categories and opt in to them every quarter.
Why We Like It
The Discover it® Cash Back earns solid cash-back rewards while giving you breathing room to pay down debt without interest.
Our pick for
0% period and flat-rate cash back
Annual Fee
$0
Regular APR
15.49% - 25.49% Variable APR
Intro APR
0% intro APR on Purchases for 15 months
Rec Credit Score
690-850Good - Excellent
- One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases for 15 months; 15.49%-25.49% variable APR after that
- Pay no annual fee or foreign transaction fees
Pros
You get 0% intro APR on Purchases for 15 months, and then the ongoing APR of 15.49% - 25.49% Variable APR. Every purchase earns 1.5% cash back, with no limit to what you can earn. Bonus offer: One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.
Cons
Depending on your spending patterns, you might earn more rewards with a card that pays higher rates in specific categories. Still, simplicity is a primary part of this card's appeal.
Why We Like It
The Capital One Quicksilver Cash Rewards Credit Card might be the best-known name in the 1.5% cash back game, but it also starts you off with a terrific 0% intro APR period.
Our pick for
Long 0% intro period
Annual Fee
$0
Regular APR
12.99% - 22.99% Variable APR
Intro APR
0% intro APR for 18 billing cycles on purchases and on any balance transfers made within 60 days of account opening
Rec Credit Score
690-850Good - Excellent
- 0% Introductory APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 12.99% - 22.99% Variable APR will apply. A 3% fee (min $10) applies to all balance transfers
- No annual fee
- No penalty APR. Paying late won't automatically raise your interest rate (APR). Other account pricing and terms apply
- Access your FICO® Score for free within Online Banking or your Mobile Banking app
- Contactless Cards - The security of a chip card, with the convenience of a tap
Pros
There's an intro APR of 0% intro APR for 18 billing cycles on purchases and balance transfers, and then the ongoing APR of 12.99% - 22.99% Variable APR. Unlike many other balance-transfer cards that are available only to those with excellent credit, some applicants may be able to qualify for this card with good credit.
Cons
The card doesn't earn ongoing rewards.
Why We Like It
The BankAmericard® credit card is a solid option for people looking to start out with a long interest-free period.
Our pick for
0% intro period and bonus category cash back
Annual Fee
$0
Regular APR
14.99% - 23.74% Variable APR
Intro APR
0% intro APR on Purchases for 15 months
Rec Credit Score
690-850Good - Excellent
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
- Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
- Earn 5% on travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1% on all other purchases.
- No annual fee.
- 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.
- No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.
See if you qualify for a better offer with Chase:
Pros
You get an introductory 0% intro APR on Purchases for 15 months, and then the ongoing APR of 14.99% - 23.74% Variable APR. This card earns 5% cash back in bonus categories that change every three months (on up to $1,500 per quarter in spending, then 1%); 5% on travel booked through Chase; 3% cash back at restaurants and drugstores; and 1% on other purchases. New cardholders can also earn a cash bonus.
Cons
You have to opt in to the bonus categories every quarter, which can be a hassle.
Why We Like It
If you're willing to put in a little work, the Chase Freedom Flex℠ offers terrific rewards potential that will endure long after its (excellent) 0% APR period runs out.
Our pick for
0% intro period + grocery and gas rewards
Annual Fee
$0
Regular APR
13.99% - 23.99% Variable APR
Intro APR
0% intro APR on Purchases for 15 months
Rec Credit Score
690-850Good - Excellent
- Earn $200 back after you spend $1,000 in purchases on your new Card within the first 3 months.
- 3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%).
- 2% Cash Back at U.S. gas stations and at select U.S. department stores.
- 1% Cash Back on other purchases.
- Low intro APR: 0% for 15 months on purchases from the date of account opening, then a variable rate, 13.99% to 23.99%.
- Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee.
- Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits.
- No annual fee.
- Terms Apply.
Pros
Start with a 0% intro APR on Purchases for 15 months, and then the ongoing APR of 13.99% - 23.99% Variable APR. You earn 3% cash back at U.S. supermarkets (on up to $6,000 spent per year, then 1%), 2% back at U.S. gas stations and select U.S. department stores, and 1% back on everything else. (Terms apply.) There's a nice bonus offer, too.
Cons
This card doesn't offer the transit or streaming benefits of its annual-fee cousin, the Blue Cash Preferred® Card from American Express. And if you spend at least $61 per week at the supermarket, you’re actually better off paying the annual fee on that card because you'll come out ahead with the higher rewards rate. But that other card has a shorter 0% intro APR period.
Why We Like It
The Blue Cash Everyday® Card from American Express combines a great 0% intro APR period with elevated rewards in common household spending categories.
Our pick for
Longest 0% intro APR period
Annual Fee
$0*
Regular APR
14.49% - 24.49%* Variable APR
Intro APR
0%* intro APR for 20 billing cycles on purchases and balance transfers*
Rec Credit Score
690-850Good - Excellent
- 0% Intro APR on purchases and balance transfers for 20 billing cycles. After that, a variable APR currently 14.49% - 24.49%.
- Great offer from U.S. Bank, a 2020 World's Most Ethical Company® - Ethisphere Institute, February 2021.
- No Annual Fee*
- Flexibility to choose a payment due date that fits your schedule.
- Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your U.S.Bank Visa® Platinum Credit Card. Certain terms, conditions, and exclusions apply.
Pros
The U.S. Bank Visa® Platinum Card gives you a good long time to pay off a major purchase.
Cons
This card offers no rewards, so there's not a very compelling incentive to keep using it after the 0% intro period runs out.
Why We Like It
If you need to spread out payments on a purchase as long as possible without interest, the U.S. Bank Visa® Platinum Card is your card.
Our pick for
Long 0% intro APR period
Annual Fee
$0
Regular APR
16.49% - 24.49% Variable APR
Intro APR
0% intro APR for 18 months from account opening on purchases and qualifying balance transfers
Rec Credit Score
690-850Good - Excellent
- 0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, then a 16.49% to 24.49% variable APR; balance transfers made within 120 days qualify for the intro rate and fee
- $0 Annual Fee
- Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Platinum card
- Easy access to your FICO® Credit Score with Wells Fargo Online®
- Monitor your spending, purchases and any suspicious activity with text and email alerts and notifications
- Convenient tools to help create a budget and manage your spending with My Money Map
- Select "Apply Now" to learn more about the product features, terms and conditions
Pros
There's a 0% intro APR for 18 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 16.49% - 24.49% Variable APR. The fee for balance transfers in the first 120 days is only 3% ($5 minimum), before rising to 5%. This card also offers cellphone insurance if you use it to pay your wireless bill.
Cons
As with many cards with a long 0% intro APR period, there isn't a lot of incentive to keep using it after the introductory rate expires.
Why We Like It
The Wells Fargo Platinum card isn't flashy, nor does it aim to be. It just gives you a nice, long 0% introductory period for a $0 annual fee.
Our pick for
0% period + 'rounded-up' rewards
Annual Fee
$0
Regular APR
13.49% - 23.49% Variable APR
Intro APR
0% Intro APR on balance transfers for 15 months from date of first transfer and on purchases from date of account opening
Rec Credit Score
690-850Good - Excellent
- The Citi Rewards+® Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap.
- Earn 15,000 bonus points after you spend $1,000 in purchases with your card within 3 months of account opening; redeemable for $150 in gift cards at thankyou.com.
- 0% Intro APR on balance transfers for 15 months from date of first transfer and on purchases from date of account opening. After that, the variable APR will be 13.49% - 23.49%, based on your creditworthiness. Balance transfer fee — either $5 or 3% of the amount of each transfer, whichever is greater.
- Earn 2X ThankYou® Points at Supermarkets and Gas Stations for the first $6,000 per year and then 1X Points thereafter. Plus, earn 1X ThankYou® Points on All Other Purchases.
- The standard variable APR for Citi Flex Plan is 13.49% - 23.49%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
Pros
You get an introductory 0% Intro APR on balance transfers for 15 months from date of first transfer and on purchases from date of account opening, and then the ongoing APR of 13.49% - 23.49% Variable APR. This card earns 2 points per dollar on the first $6,000 spent per year at supermarkets and gas stations, and 1 point per dollar on all other purchases. Further, rewards on all purchases are rounded up to the nearest 10 points, which amplifies the value for smaller spenders.
Cons
If long-term value is a paramount concern, bigger spenders might want to go elsewhere. This card is of greatest benefit to people who make a lot of smaller purchases. If that's you, though, definitely give it a look.
Why We Like It
Although the rewards that give this card its name aren't a great match for a lot of people, the Citi Rewards+® Card also comes with a solid 0% APR offer for new cardholders.
Our pick for
0% intro period and flat-rate cash back
Annual Fee
$0
Regular APR
13.99% - 23.99% Variable APR
Intro APR
0% intro APR on Purchases for 15 months
Rec Credit Score
690-850Good - Excellent
- Earn a $150 statement credit after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.
- Unlimited 1.5% Cash Back on your purchases.
- Low intro APR: 0% for 15 months on purchases from the date of account opening, then a variable rate, currently 13.99% to 23.99%.
- Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee.
- Amex Offers rewards you at places you like to shop, dine, travel, and more. You can add as many Offers as you'd like to your Card, then just use that Card to pay, and enjoy rewards directly on your statement.
- Cash Back is received in the form of Reward Dollars that can be redeemed for statement credits.
- No Annual Fee.
- Terms Apply.
Pros
You get a 0% intro APR on Purchases for 15 months, and then the ongoing APR of 13.99% - 23.99% Variable APR. The card earns 1.5% cash back on all eligible purchases, and new cardholders can qualify for a solid bonus: Earn a $150 statement credit after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership. Terms Apply.
Cons
Your only option for redeeming cash back is as a statement credit, with a $25 minimum. You can't get rewards deposited into a bank account, as is possible with many other cash-back cards.
Why We Like It
The American Express Cash Magnet® Card has a great 0% introductory APR period, plus a bonus offer and solid ongoing rewards that make it a keeper even after the intro period runs out.
FULL LIST OF EDITORIAL PICKS: BEST 0% APR AND LOW INTEREST CREDIT CARDS
Click the card name to read our review. Before applying, confirm details on the issuer’s website.
Our pick for: Longest 0% intro APR period
A lengthy 0% introductory APR period for both purchases and balance transfers has made the U.S. Bank Visa® Platinum Card a NerdWallet favorite. Read our review.
Our pick for: Long 0% intro APR period
The Citi® Diamond Preferred® Card offers a long 0% introductory APR period on balance transfers and a shorter (but still pretty good) one for purchases. It doesn't have the late-fee forgiveness of Citi's other balance-transfer card, but it's still a great option. Read our review.
Our pick for: Long 0% intro APR period
The Wells Fargo Platinum card is pretty bare bones — but they're good bones. You get a nice, long introductory 0% APR period on both purchases and balance transfers, plus no annual fee. There are no rewards, but you get automatic cell phone protection when you pay your wireless bill with the card, so there's a great reason to hold onto it long-term. Read our review.
Our pick for: Long 0% intro APR period
The BankAmericard® credit card isn't flashy, nor does it aim to be. You get a decent 0% introductory APR period to whittle down debt or finance a large purchase. And that's about it. Read our review.
Our pick for: 0% intro period and late fee waiver
How does the HSBC Gold Mastercard® credit card set itself apart from competing cards that have a similar introductory 0% APR periods? By offering a little forgiveness: It waives the fee on a late payment if you haven't been late in the preceding year. Read our review.
Our pick for: 0% intro period and ongoing cash back
The Chase Freedom Unlimited® was already a fine card when it offered 1.5% cash back on all purchases. Now it's even better, with bonus rewards on travel booked through Chase, as well as at restaurants and drugstores. On top of all that, new cardholders get a 0% introductory APR period and the opportunity to earn a sweet cash bonus. Read our review.
Our pick for: 0% intro period and flat-rate cash back
The American Express Cash Magnet® Card pays a simple, flat cash-back rate on all purchases, with no limit to how much cash back you can earn. Plus, get a decent bonus offer and an introductory 0% APR period. If you want an AmEx card with a no-hassle rewards structure, this is your card. Read our review.
Our pick for: 0% intro period and flat-rate cash back
The original 1.5% flat-rate cash-back card still holds its own in a now-crowded field. The Capital One Quicksilver Cash Rewards Credit Card offers a compelling combination of a good rewards rate, redemption flexibility, sign-up bonus and introductory 0% APR period. Read our review.
Our pick for: 0% intro period + grocery and gas rewards
The Blue Cash Everyday® Card from American Express pays elevated rewards at U.S. supermarkets, U.S. gas stations and select U.S. department stores. The rewards aren't as rich as on the Blue Cash Preferred® Card from American Express, but this card doesn't charge an annual fee. New cardholders get a decent bonus offer and an introductory 0% APR period. If you're buying groceries regularly but not necessarily all the time, it's worth a look. Read our review.
Our pick for: 0% intro period and bonus category cash back
The Chase Freedom Flex℠ offers bonus cash back in quarterly categories that you activate, as well as on travel booked through Chase, at restaurants and at drugstores. Category activation can be a hassle, but if your spending matches the categories — and for a lot of people, it will — you can rack up hundreds of dollars a year. There's a fantastic bonus offer for new cardholders and a 0% intro APR period, too. Read our review.
Our pick for: 0% intro period and bonus category cash back
The Discover it® Cash Back earns bonus cash back in quarterly categories that you activate. In past years, those categories have included common spending areas like grocery stores, restaurants, gas stations and Amazon.com. Category activation can be a hassle, but if your spending aligns with those categories (and for most households, it probably will), you can rake in serious rewards. You also get the issuer's signature "cash-back match" bonus in your first year. Read our review.
Our pick for: 0% period + 'rounded-up' rewards
The Citi Rewards+® Card might not be right for everyone, but its unique rounding-up feature means that every purchase will earn at least 10 points. The card offers bonus rewards at gas stations and supermarkets and has no annual fee. And the 0% intro APR period shouldn't be overlooked. Read our review.
OTHER RESOURCES
Understanding interest rates and APRs
The annual percentage rate, or APR, is the interest rate your credit card issuer charges on debt on your card. Some cards charge a single rate for all debt on the card; others charge different rates for different kinds of debt (purchases, cash advances, etc.). APRs are listed on your monthly statement.
Issuers commonly set their rates at a certain number of percentage points above the prime rate, which is the rate big banks charge their best customers. For example, your rate might be "prime + 12 points." If the prime rate was 5.5%, your APR would be 17.5%. With the exception of introductory 0% or teaser-rate offers, you're not going to find a credit card APR lower than the prime rate.
Although interest rates are expressed in annual terms, they're usually charged on a daily basis. An annual rate of 17%, for example, would translate to a daily rate of about 0.0466%. So for every $1,000 in debt, you'd pay about 47 cents a day in interest.
How to avoid paying credit card interest entirely
Most credit cards offer a "grace period" that allows you to avoid paying any interest at all.
If you pay your balance in full each month, then you will not owe any interest on your purchases.
If you carry debt over from month to month, then interest will start accruing on purchases as soon as they land on your statement.
If you're what the credit card industry refers to as a "transactor" — someone who uses their card for convenience and rewards and pays the bill in full every month — then your APR is pretty much irrelevant, because you'll never pay a dime in interest.
On the other hand, if you're a "revolver" — someone who uses cards to float purchases they can't pay off all at once and carries debt from month to month — then your APR is very important, because it dictates how much you pay in interest.
Whats's the difference between interest and APR?
When you're talking about credit cards, there is no difference between your interest rate and APR. They're the same thing.
That leads to another question: Why do credit card issuers refer to it as the "APR" rather than the interest rate? Mostly because federal truth-in-lending laws require it. The APR is the “real” annual cost of borrowing money, and it includes not just interest on the money you borrow, 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, in large part because issuers cannot predict who will have to pay them or how much they will pay.
Glossary of APR terms
Purchase APR. This is the rate your card charges when you pay for things with the card. Most credit cards offer a grace period: If you pay your balance in full every month, you won't have to pay interest on purchases. If you roll over debt from one month to the next, then interest will start adding up on a purchase as soon as you make it.
Balance transfer APR. This is the rate on debt that you've moved to the card from somewhere else. To attract your business, card issuers often offer a low rate, even 0%, on transferred debt.
Cash advance APR. This is the rate charged when you use your credit card to get cash from an ATM. Interest usually starts adding up on cash advances immediately. Grace periods don't apply.
Introductory APR. Sometimes called a "teaser rate," this is a low interest rate offered when you first open your account. Many credit cards offer people with good credit an introductory rate of 0% on purchases for a year or more.
Ongoing APR. This is the "regular" rate that goes into effect once any introductory APR period expires.
Variable APR. Most credit card interest rates are tied to the prime rate. When the prime rate goes up (or down), your credit card's interest rate will usually go up (or down) an equal amount. "Variable APR" just means your current rate is not permanent and could change if the prime rate does.
How credit card issuers set interest rates
Credit card issuers are required by law to clearly state the interest rate on a credit card before you apply. You can find the interest rate (or rates) charged by a card in its "terms and conditions," sometimes referred to as the fine print. When looking at a card online, look for a link that says something like "See terms and fees" or "View rates and fees" or "Offer details." The rate will be prominently displayed in a large chart known as the Schumer box.
With some cards, everyone has the same APR. This is common especially with cards for people with bad credit (in which the rate is very high) or super-low-interest cards for people with good credit.
Many cards charge a range of APRs. It's common to see a card saying it charges something like "15.99% to 23.99%." When a card has a range of available APRs, the rate you get will usually depend on your creditworthiness. See below for how your credit score affects your interest rate.
Rewards cards tend to charge higher APRs. Cash-back and travel-rewards programs are expensive, and one of the ways credit card issuers pay for them is by charging higher interest rates on balances on rewards cards.
How do 0% APR offers work?
Say you have a card with an introductory 0% purchase APR for 15 months. A "0%" rate means no interest at all will be charged on purchases, in this case for the first 15 months you have the card. Once that introductory period runs out, interest will be charged at the ongoing APR — but only on your balance going forward. There is no "retroactive" interest. (One note of caution, though: If you have a 0% offer, make sure you pay your bill on time every month; a late payment can cancel your 0% rate and immediately move you to the ongoing rate.)
Zero-percent periods on credit cards are different from the "no interest for 12 months" offers you see in stores. Those are what's known as "deferred interest." In those offers, you don't have to pay interest during the promotional period, but interest is silently being calculated in the background. If you have any balance remaining at the end of the period, you will be charged interest on your whole purchase, going all the way back to the time of purchase. That could cost you hundreds of dollars.
» MORE: Deferred interest vs. 0% APR
How your credit score affects your interest rate
The interest rate you pay on your credit card is heavily dependent on your credit history, which is summed up in your credit scores. Interest rates are how issuers put a price on risk:
When you have a low credit score, lenders see a higher risk in lending you money. As a result, the interest rate charged by your credit card will be higher.
When you have a high credit score, the risk is lower that you wont repay borrowed money. So the interest rate on your credit card will be lower.
If a card advertises a range of APRs, a lower score will put you toward the higher end of that range (or you might not qualify for a card at all), while a high score will put you on the lower end of the range.
As a very general rule of thumb:
If you have good or excellent credit (a score of 690 or more), look for prime + less than 12 points.
For average credit (630 to 690), you'll likely see prime + 15 to 20 points.
For bad credit (below 630), expect to find APRs more in the range of prime + more than 20 points.
Improving your credit to qualify for a better rate
As with most financial products, the best interest rates on credit cards are available to those with the strongest credit profiles. Improving your credit is the first step toward improving your rate. Steps to take:
Know your credit score. You can get free access to your score through NerdWallet. Get your free score here.
Make 100% of your payments on time. This applies not only to credit cards, loans and other lines of credit, but also to utility bills and other accounts. Unpaid bills that that go into collections can seriously hurt your credit.
Keep your credit utilization low. Don't let your balance on any card (or all cards put together) exceed 30% of the total credit limit.
Limit your credit applications. New accounts lower the average age of your open lines of credit, which makes up part of your credit score. Multiple credit inquiries from applications can also ding your score.
Keep accounts open. Unless a card has an annual fee, keep it open and active, even if for only one bill a month. This will help both your credit utilization and the length of your credit history.
Check each of your credit reports each year for errors and discrepancies.
» MORE: How to build credit
The high cost of a higher interest rate
A higher APR costs you money in two ways:
First, obviously, it increases the amount of interest charged on your purchases.
Second, because you are paying more in interest, you have less money available to pay down the principal — the debt you actually put on the card. That means you could stay in debt (and pay interest) for a longer time.
Let's walk through an example and see how a higher APR affects you at every turn.
1. Your interest charges are higher
If you have excellent credit, you might qualify for a credit card with a super-low rate, let's say 8%. Meanwhile, a person with bad credit or no credit history at all might only qualify for a "starter" card with an APR of 26%. Let's say each person carries a $1,000 balance from one month to the next:
The 8% APR card produces an interest charge of about $6.58 in the first month.
The 26% APR card produces an interest charge of about $21.36 in the first month.
2. Your minimum payments are higher
The minimum payment on a credit card is typically made up of all the accrued interest, plus any fees, plus a percentage of the principal (the money you actually spent on the card). In this case, let's say that percentage is 1.5%.
The 8% APR card will have a minimum payment of $21.58 in that first month.
The 26% APR card has a minimum payment of about $36.36 the first month.
3. Your debt shrinks more slowly
Now say that each person has only $50 a month to put toward credit card debt. That's more than the minimum (and paying more than the minimum is always good), but it's not enough to cover their debt entirely. This is a common way people use credit cards — they're "revolvers" who pay down slowly over time.
With a $50 payment on the 8% APR card, $6.58 goes to interest and $43.42 goes to reduce the debt. The cardholder now has $956.58 in debt left to repay.
With a $50 payment on the 26% APR card, $21.36 goes to interest and only $28.64 goes to reduce the debt. The cardholder now has $971.36 in debt left to repay.
After just one month, the person with the lower APR is about $15 ahead of the person with the higher APR in the "race" to eliminate their debt.
4. You're in debt longer and pay more to get out
Say they continue like this, each paying $50 a month. For each cardholder, the interest charges will shrink each month as they pay down the principal. But the one with the lower APR will get out of debt more quickly and pay less in interest:
After a year, the person with the 8% card has reduced their debt to about $460. That means $600 worth of payments has reduced their debt by about $540. They'll be debt-free after 22 months, and they'll pay a total of about $76 in interest.
After a year, the person with the 26% card has reduced their debt to only about $613. That means $600 in payments has cut the debt by only about $387. They'll need 27 months to get debt-free, and they'll pay a total of $318 in interest.
Reducing your interest costs
As discussed, you can avoid interest entirely by paying your balance in full every month. But that's not always possible for everyone. Sometimes carrying a balance is unavoidable. Here are some options.
Pay more than the minimum due
The minimum payment shown on your billing statement is the absolute least you can pay without incurring a penalty. It won't get you very far toward paying off your debt, though, as the above example makes clear. To see real interest savings, you need to pay interest on less money, and that means attacking the principal by paying more than the minimum.
We've created a calculator to help you see how much you could save in interest by paying down your credit card balance. Enter your balance and choose an interest rate, then see your savings if you reduced the balance by 5% to 50%. See the calculator here.
Ask if you qualify for a lower rate
This may be an option if your credit score has improved considerably since you opened the account. The issuer might knock some points off your rate, or move your account to a card with a lower rate. You issuer might say no to your request, but you don't know unless you ask.
Move debt to a 0% interest credit card
Transferring high-interest debt to a credit card with an introductory 0% APR period can save you hundreds of dollars in interest. You may have to pay a fee of around 3% of the amount you transferred, but you'll get breathing room to pay down your debt. Keep in mind, though, that 0% interest credit cards are generally available only to people with good or excellent credit.
How to compare 0% and low-interest cards
When choosing a 0% APR credit card or a low-interest credit card, let your specific needs be your guide:
If you have a big purchase coming up and will need time to pay it off, your best bet is a card with a lengthy 0% introductory APR period. Many rewards cards offer a year or more at 0%, which allow you to collect rewards on your purchase, then pay it off interest-free.
If you find you're consistently carrying a balance a from month to month, look for a card with a low ongoing interest rate. Cards with an introductory 0% period tend to charge higher rates down the road.
If you want to transfer a balance to pay it down at a lower cost, you'll want a card with a 0% intro period and a low (or no) balance transfer fee. Many of the cards on this list are good for transfers, but check out our best balance transfer credit cards for further options.
Once you've decided what type of card to look for, compare cards based on the following factors.
Introductory APR period
Dozens of cards offer newcomers a 0% APR period of a year or more when they first open the account. This includes a number of popular rewards cards, where you can get 0% interest for as long as 15 months. If you've got a big purchase coming up and will need time to pay it off, a 0% offer is perfect. In general, the longer the 0% period, the better, but there are a few things to keep in mind:
If you're late with a payment, the issuer can cancel your 0% rate, leaving you paying high interest on a big balance.
Some cards offer long 0% periods for balance transfers, but shorter ones (or no 0% period at all) for purchases. Read the fine print before applying.
The best 0% interest credit cards — those with 0% APR periods of 18 months or more — generally don't offer rewards, so once the 0% interest period runs out, there's not a lot of incentive to use the card, unless the card offers a low ongoing rate.
Some cards don't have a 0% introductory period but instead offer you a super-low teaser rate, say 3%, or the prime rate. These are worth considering, too, especially if the ongoing rate is low.
Ongoing APR
In general, you can get a card with a 0% introductory period or you can get a card with a low ongoing APR, but there aren't a lot of cards that give you both. If you expect that you'll be carrying a balance regularly, the ongoing APR is an important consideration.
Balance transfer fee
Most cards charge a fee of 3% to 5% of the amount transferred — equal to $30 to $50 for every $1,000 worth of debt moved to the card. Depending on the APR on the card you transfer the debt to and how long it takes you to pay it off, you could save more in interest than you pay in transfer fees. Some cards charge no transfer fee. Of course, if you're only interested in purchases rather than transfers, this fee is irrelevant.
Required credit profile
You're unlikely to qualify for a low-interest or 0% credit card unless you have good credit, generally defined as a score of 690 or better. Some cards even require excellent credit, generally defined as 720 or better.
Penalty policies
It's important to pay your bill on time every month. Paying late usually results in a stiff fee (often nearly $40), and if you're 30 days or more late, it can badly damage your credit score. Finally, a late payment can trigger a penalty APR, jacking up your interest rate as high as 30% in some cases. When you're on a 0% period or have a low ongoing rate, being bumped up to a penalty rate can be disastrous. Some cards, however, have forgiveness policies in place: Some don't charge late fees at all, some will waive your first late fees, and some pledge not to charge a penalty rate. If punctuality is an issue for you, look into a card's penalty policies (and, for your own sake, work on your punctuality).
Annual fee
Saving money is the primary reason to get a low-interest credit card, so you shouldn't be paying an annual fee on such a card. However, some rewards cards with 0% interest periods do charge an annual fee; whether it's worth paying depends on how much you expect to earn in rewards.
Free credit score
Most major credit card issuers and many smaller ones give cardholders free access to a credit score. When you're looking to manage debt with a low-interest card, it's smart to keep an eye on your score.
Rewards and perks
As mentioned, many rewards cards offer a 0% interest period, but rewards cards also tend to have higher ongoing APRs. If saving money on interest is your primary motivation, then rewards and perks should be a lesser concern. Still, all other things being equal, a card that offers rewards, perks or other goodies is preferable to one that doesn't.
Making the most of your 0% or low-interest card
If your card has a 0% intro period, strive to eliminate as much debt as possible before that introductory period ends and the interest resets to its ongoing rate. A 0% card should be a tool for getting rid of debt, not just a place to park debt and forget about it. If you find yourself moving debt from one 0% card to another but never paying it down, it's time to consider other debt solutions.
Although a card with a low ongoing rate can save you a lot of money over time, you're still paying interest. Apply those savings toward whittling down your debt faster. Saving, say, $20 a month on interest means you have $20 more you can use to reduce the balance on your credit card and move that much closer to freedom.
With any card, watch your balance. For the sake of your credit scores, it's best to keep your balance under 30% of the credit limit on the card. Under 10% is even better. When balances rise above 30% of credit limits, scoring formulas start to interpret that as a sign of financial stress.
Other cards to consider
Looking to transfer a balance to save money? Our roundup of the best balance transfer cards evaluates cards — including many of the cards on this page — with that specific goal in mind.
Do you even need a low-interest card? You might not. If you pay your balance in full every month, the APR on your credit card doesn't matter, because you're never actually charged interest. In that case, consider a rewards credit card, which gives you a little something back very time you make a purchase. Rewards cards fall into two major categories: cash back credit cards and travel credit cards
Last updated on April 16, 2021
Methodology
NerdWallet's Credit Cards team selects the best low interest and 0% APR credit cards based on overall consumer value, as evidenced by star ratings, as well as their suitability for specific kinds of consumers. Factors in our evaluation include annual fees, the length of a card's introductory 0% APR periods (if any) on purchases and balance transfers, ongoing APRs, balance transfer fees, bonus offers for new cardholders, rewards rates and redemption options, and other noteworthy features such as fee waivers or the ability to qualify with less than good credit.
Frequently asked questions
Both a 0% credit card and a low-interest credit card save you money on interest, but they do it in different ways — short-term versus long-term.
• A 0% card doesn’t charge any interest at all for a period of time after you open the account, then it shifts to an often-high ongoing interest rate. Zero-percent cards are good for people who want to spread out payments on a large purchase or gain breathing room to pay down debt without interest.
• A low-interest credit card doesn’t typically have a 0% period. Instead, it charges an ongoing interest rate that lower than other cards on the market. Low-interest cards are good for people who expect to roll over a balance most months (meaning they don’t pay off their balance in full every month).
While 0% cards often offer rewards as an incentive to keep using them after the 0% period runs out, low-interest cards do not. The lower interest rate is the "reward."
A 0% credit card works just like any other credit card except that for a certain period of time after you open your account, the bank doesn’t charge any interest on your balance. You’re still responsible for paying at least the minimum amount due each month. (And be sure you do: If you don't, the issuer might cancel your 0% period.) Once the introductory 0% period ends, your APR rises to the ongoing rate, and you will be charged interest on your balance going forward.
Among credit cards from major issuers, the longest 0% APR periods tend to be around 18 months, although in a few cases you might find 20 or 21 months, especially for balance transfers. (Depending on the card, the 0% period may apply to purchases, balance transfers or both; some cards have different 0% periods for purchases and transfers.) Cards from smaller issuers or credit unions may offer longer 0% periods. It’s most common to see periods of 12 to 15 months.
Credit card issuers use 0% introductory offers to attract new customers, so to get one, your best bet is to apply for a new card that advertises a 0% period. Generally speaking, you’ll need good to excellent credit to qualify for a card with a 0% offer. That roughly translates to a credit score of 690 or better — although credit scores alone do not guarantee approval for any credit card. You’ll also need to be able to show income and meet other requirements.
Occasionally, credit card companies will make a 0% offer to existing customers to encourage them to use their cards (especially if they haven’t been doing so recently), but that’s not something you can count on happening.
With low-interest cards, too, you generally need good to excellent credit to qualify. The same caveats apply — credit score alone doesn't guarantee approval.
If the card doesn’t charge an annual fee, there’s no harm in keeping the account open once the introductory 0% rate expires. In fact, closing the account could hurt your credit score by reducing the amount of credit you have available, which could increase your credit utilization. If the card charges a fee, however, or if you fear that the open credit line will tempt you to overspend, then closing it might be the best action.