5 Low-Interest Credit Cards for Americans in 2022
More than 80 percent of Americans have at least one credit card. In fact, the average American has more than three credit cards. Those credit limits, combined with high interest rates, account for huge profits for the likes of Visa, MasterCard, Discover, American Express, and the various banks they partner with to issue these cards. Searching online for credit card offers in your area is the best place to start when looking for a low-interest credit card.
Ideally, you wouldn’t carry a balance on your card at all. But hey, sometimes unexpected expenses pop up. That’s why it’s worth exploring a credit card with a low interest rate. Yes, they are out there, even as interest rates slowly creep up around the country. Just keep in mind that the interest rate you’re offered will be tied directly to your credit score. An online search for which banks or companies are offering affordable credit cards will kickstart your research.
Wells Fargo Reflect Card
The Wells Fargo Reflect Card offers interest rates as low as 13.75 percent APR, along with no annual fee. You’ll need good-to-excellent credit to qualify for the best rates, which can climb as high as 25.74 percent. There’s also an introductory balance transfer APR of zero percent for up to 21 months, if you have a qualifying balance transfer to make.
The Reflect Card has a couple additional bonuses. First, there’s up to $600 in cell phone protection if you pay your mobile bill with your card. However, be aware that there’s a $25 deductible. You can also utilize Wells Fargo Deals to earn cash back when you shop, dine out, or buy certain entertainment products.
Chase Freedom Unlimited
The Chase Freedom Unlimited card doesn’t go quite as low as the Reflect Card, with a bottom interest rate of 15.74 percent. However, the card more than makes up for it with a generous rewards program. You’ll get:
- 6.5 percent cash back on qualifying travel purchases through Chase Rewards;
- 4.5 percent back on drugstore and dining purchases — including takeout — up to $20,000 a year with three percent afterwards, and;
- 1.5 percent on all other purchases.
This card comes with no annual fee and minimum redemption amount on the cash back rewards. The rewards also never expire, making them a more attractive option than any card with expiry dates on points/miles/cashback. There is also an introductory zero percent APR on all purchases and balance transfers for the first 15 months.
Discover it Balance Transfer
With rates as low as 12.74 percent, the Discover it Balance Transfer card comes with one of the lowest variable interest rates you can get. There’s also no annual fee, making it a very cheap credit card to own, even if you don’t pay off your balance every single month.
As its name implies, this card is great for balance transfers. There’s a zero percent introductory APR on all balance transfers for the first 18 months. However, there is a one-time three percent fee on the balance transferred.
You will earn five percent cashback on plenty of everyday purchases, like Amazon, grocery stores, dining, and fuel. Even non-qualifying purchases will earn one percent cashback automatically. Even better, Discover will match all your cashback earnings at the end of your first year. Furthermore, there’s no redemption limit on your cashback rewards and they never expire.
Discover it chrome
Here’s another Discover-branded card with ultra low interest rates. The “it chrome” card (no capital letters because marketing!) offers a range of 12.74 percent to 23.74 percent. Like the other cards on this list, there is no annual fee. Plus, it has some of the same features as the previous Discover card, such as the matching rewards after one year and a privacy tool that helps you remove your personal data from people-search websites.
This card also has a zero percent introductory APR for purchases and balance transfers for 15 months, plus a decent cashback rewards program. You’ll get one percent back on every single purchase, with certain categories like gas and restaurants jumping up to two percent.
Chase Freedom Flex
The final card on our list is the Chase Freedom Flex. With no annual fee and annual interest rates in the 15.74 percent to 24.49 percent range, it remains a popular card for many Americans. There’s an even a $200 welcome bonus, as long as you spend $500 in the first three months of opening the card. That’s easy money for most people.
The Freedom Flex cashback system is also fairly generous. You’ll get five percent back for up to $1,500 on personally selected categories every quarter. So if you know you’re going to spend extra on gas, travel, or groceries over a certain period, you can cash in some extra rewards. There’s also:
- Five percent cashback on travel purchases made through Chase Ultimate Rewards;
- Three percent cashback on drugstore and dining purchases, and;
- One percent cashback on everything else.
An introductory zero percent APR lasts for 15 months and also applies to balance transfers. Chase throws in their Credit Journey program too, to help you monitor your credit and keep your financial data safe.