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Best Low Interest Credit Cards for Good Credit

July 6, 2020
Credit Cards, Low Interest and No Fee Credit Cards
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  • Chase Freedom®
  • Bank of America® Cash Rewards credit card

As a result, offers described on this page may be out of date. See our best credit cards page for updated offers.

Carrying credit card debt is never a good idea, but it’s a much more expensive mistake if your credit card has a sky-high interest rate. If you have good credit, you can enjoy low interest on your credit cards, just in case you carry a small balance from one month to the next. Here are three of our favorite low interest cards for good credit — plus, they all have rewards.

Chase Freedom®: Best for cash bonuses

The Chase Freedom® has 5% bonus rewards on rotating quarterly categories and 1% cash back on everything else. Here are the current bonus categories. You earn 5% cash back on up to $1,500 in spending per quarter (and 1% after that):

Chase Freedom® bonus rewards categories for 2020
Q1 (Jan. 1 - March 31)• Gas stations.
• Select streaming services.
• Internet, cable and phone services.
Q2 (April 1 - June 30)• Grocery stores.
• Gym memberships and fitness clubs.
• Select streaming services.
Q3 (July 1 – Sept. 30)• Amazon.com.
• Whole Foods Market.
Q4 (Oct. 1 – Dec. 31)TBD (In 2019, department stores, PayPal and Chase Pay.).

There’s also a killer sign-up bonus: Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening. Plus, if you add an authorized user and make a purchase within the first three months, you’ll receive an additional $25 cash bonus. While the rewards are cash back, you can also transfer them to your Chase Sapphire Preferred® Card to use at a rate of 1.25 cents per point for travel on the Chase Ultimate Rewards site.

The Chase Freedom® has an annual fee of $0 and foreign transaction fees of 3%. It offers an introductory APR of 0% APR for 15 months on purchases and balance transfers, and then the ongoing APR of 16.49% - 25.24% Variable APR. The balance transfer fee is 3% or $5, whichever is greater, during the introductory APR period. After that, the fee is 5% or $5, whichever is greater.

Discover it® Cash Back: Best for online shopping

Like the Chase Freedom®, the Discover it® Cash Back has rotating bonus categories with 5% rewards (on up to $1,500 in spending per quarter) and 1% cash back on everything else. Bonus categories must be activated quarterly to qualify for the higher rate. Here are the current categories:

Discover bonus rewards categories for 2020
Q1 (Jan. 1 – March 31)• Grocery stores.
• CVS.
• Walgreens.
Q2 (April 1 – June 30)• Gas stations.
• Uber and Lyft.
• Wholesale clubs.
June only: Home Depot
Q3 (July 1 – Sept. 30)• Restaurants.
• PayPal.
Q4 (Oct. 1 – Dec. 31)• Amazon.com.
• Target.com.
• Walmart.com.

Rewards are redeemable for statement credit, direct deposit and credit cards. They can also be used to pay for Amazon purchases through the Shop with Points program.

The Discover it® Cash Back comes with an introductory APR, too: 0% intro APR for 14 months on purchases and balance transfers, and then the ongoing APR of 11.99% - 22.99% Variable APR. It has an annual fee of $0, no foreign transaction fees, no over-the-limit fees and no penalty rates. Cardmembers will also have their first late payment fee waived and have access to their free FICO score on their monthly statements, online and on the mobile app.

Bank of America® Cash Rewards credit card: Best for gas and grocery store purchases

The Bank of America® Cash Rewards credit card offers 3% cash back on a category of your choice and 2% back at grocery stores and warehouse clubs on up to $2,500 in combined spending per quarter, and 1% back on everything else. There’s also a customer bonus of 25%, 50% or 75% if you’re a Preferred Rewards client, which means you meet certain minimum balance requirements in your Bank of America® accounts. There is also a sign-up bonus: $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

The Bank of America® Cash Rewards credit card offers a 0% APR for 15 billing cycles on purchases and balance transfers, and then the ongoing APR of 15.49% - 25.49% Variable APR. And the annual fee? $0. If you want to use the card for balance transfers, you’ll pay 3% of each transaction (minimum of $10) for the privilege.

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