What Credit Card Has The Lowest Interest Rate

What Credit Card Has The Lowest Interest Rate

What Credit Card Has The Lowest Interest Rate? Nobody wants to be paying so much in interest. That is because interests of any sort can be classified as expenditures. It is money that you could have avoided, this is why it is important to find out how you can almost always beat down how much money you pay out at interest on any transaction that you undertake, and this includes how much you pay as interest on credit card usage.

To start with, note that there is a huge difference between a “debit card” and a “credit card”. A debit card uses the money you have in your account to pay for things you want to buy. That way, you must deposit money into your account before you can use the card.

Meanwhile, a credit card works in such a way that you are allowed to spend money that you don’t have yet and then you pay it back with interest in little bits. The amounts that you pay back are preset. After that, you also get a bill for what you have spent every single month. The obvious question is how do the payments of credit cards work? And how do you determine which card has the lowest interest rate so that you can know how to avoid paying too much interest?

Credit card payments work in such a way that, when you use the money on it, which is indirectly lent to you, you must always make an effort to pay back the balance each month. The least amount that you are supposed to pay is determined by the company that provides the card. Normally it is at least 1% of whatever is left, (the balance) and then there is also interest calculated on it. There is also an annual fee that is charged for using the card, some do not have any annual fee, which means you don’t pay any extra money after the interest and the “loan” you are paying back. Each month, a statement will be sent to you through the means that you have chosen while applying for the card.

If you are able to pay your loan or bill in full before the day you are required to pay off the borrowed money, you don’t pay any interest. Unless you have used the card to withdraw money.

Now, if you are not able to pay it off totally, the company will charge you interest on the amount you have left to pay. This interest is usually calculated from the day you purchased the card. And this is the interest you could work to reduce. Still, the question now is, what card has the lowest interest rate? Let us take a look at some cards, after which you can make an informed decision.

What Credit Card Has The Lowest Interest Rate

 

The Discover it Credit Card

This card stands tall among the cards with the lowest interest rates for various reasons. To start with, it has no annual fee, which means at the end of the year, you pay USD 0 as an annual fee. This is the first low fee you get using the “Discover it” card.

Also, the card gives back up much as five per cent (5%) of each day’s purchases that you make at the several locations where you patronize various goods and services with the card. Whether is an online portal like amazon, a filling station, or even a restaurant, you get to benefit from this cashback offer. This is the second benefit that makes interest rates on this card low for any customer to enjoy. Note that this offer has to be activated.

The next offer of this card is that, apart from the 5% cash back, you also get one per cent (1%) cash back on all other purchases that are made and this is automatic for every customer. The best part of this card is that to acquire it, you need a credit score of not up to 700, and that is 670.

The Wells Fargo Reflect Card

This is the second card that would be recommended among the list of credit cards with the lowest interest rates.

The Wells Fargo card also has no annual fee, meaning at the end of each year you pay USD 0.00 as an annual fee. The card also comes with an Annual Percentage Rate of between 17.24% to 29.24% depending on the factors of the time. However, this has been known to be some of the lowest interest APR on the credit card market. The thing about these offers is this:

Even though you don’t have cash back on this card, it has been ranked as one of the cards with a very low-interest rate as compared to the conglomerate of cards on the market

Some of the other cards with low-interest rates are as follows?

The Citi Diamond Credit Card: Comes with no annual fee, has an APR of between 17.24% to 27.99% and credit recommendation of between 670 to 850

Capital One Quick Silver Cash Card: With a USD 0.00 annual fee, this card comes with a cashback of 5% for all hotel bookings and travels that are done through the capital one portal. In addition, it also gives back a 1.5% cash back for all other purchases done each day.

The Chase Freedom Flex Card: This Chase card also gives a USD 0.00% annual fee, but in addition, gives back as much as 5% on purchases that are up to USD 1,500 and then gives the customer another 5% back on some categories within every quarter of the year. When you use the card to travel through the Chase portal, you earn an additional 5.5% back as well. With many other incentives, this is most definitely one of the best cards on the credit card terrain that gives you such low interest. Some of the other cards with low-interest rates include the following below.

The Blue Cash Everyday Card from American Express

The Petal 2 Cash Card

Citi Rewards Card