How to Get a Credit Card with Low Interest Rate
If you plan on carrying a balance on your credit card from one month to the next, your best bet is a card with a low interest rate. It will help minimize the interest you pay and free up your funds. But which one should you choose? Compare introductory annual percentage rates (APRs), regular APRs, and annual fees to determine the right card for you.
However, if you consistently pay your balance in full each month, you should look at a rewards credit card instead. That way, you can earn cash back, free travel, or other perks.
Low Interest Credit Card for Good Credit
The featured credit card with a low interest rate is the Barclaycard Ring MasterCard.
With a low variable APR of just 8%, this card is suited for people who tend to carry a balance month to month. While credit card users should try to pay off their balance, this card acknowledges that isn't always possible. For long-term debt holders, the Barclaycard Ring is the low-interest card to consider.
A Creative Premise with an Unclear Payback
Working against the Barclaycard Ring is the fact it doesn't have a conventional rewards program. But it does offer a potential that some users may like. Barclaycard tells users that they can earn money through its Giveback profit-sharing feature. The feature is not based on actual profits of the program but on a calculation (available at Barclaycard Ring’s website) that determines the “profit share.” The Giveback program is an interesting idea, but it’s difficult to forecast how much rewards cardholders will actually earn. Those more interested in cashback rewards than low interest rates should opt for a card with a conventional rewards program.
Why You Might Want to Look Elsewhere
As with any credit card offer, the Barclaycard Ring comes with its set of nuances that may not make it the perfect fit for everyone, but it is worth considering for its headline-worthy low interest rate. The APR is close to half of what some competing credit cards charge.
Balance Transfer Credit Cards: It’s hard to beat the allure of this card’s 8% variable APR when you think about how long you’ll be owning the card. However, unlike most credit cards that offer the more enticing – but temporary – 0% introductory APR, the Barclaycard Ring begins charging interest on balance transfers right away. Whether you're better off depends on the size of your balance and how much time you need to pay it off (most credit cards with a 0% intro APR have a balance transfer fee, usually 3%; find out more about the balance transfer game).
What is your long-term debt goal? Someone who is planning to carry debt because of a sudden surge in purchases (for example, they need to buy a bunch of appliances when they move into a new house and want to spread payments over a period of months) may be better off with a 0% intro APR instead, as long as the debt is paid off before the introductory period ends. But those who know that realistically they will keep adding to their debt pile over the next couple of years could, in the long run, pay less in interest charges with a card with a low interest rate.
However, if you consistently pay your balance in full each month, you should look at a rewards credit card instead.
Editorial Note: This content is not provided by Barclaycard. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Barclaycard. This site may be compensated through the Advertiser's affiliate programs.
Low Interest on Purchases
Disclaimer: The information for the Citi Diamond Preferred® Card, and Discover it® have been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.
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Low Interest on Balance Transfers
Disclaimer: The information for the Discover it®, Discover it® Chrome, and Citi Diamond Preferred® Card have been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.
Low Interest Credit Cards Benefits
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Credit cards with low interest rates are a great way for consumers to increase their buying power while saving money.
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