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12 min read 12.08.2021 66

Low-Interest Credit Cards: Which one is right for you?

There are a number of traditional banks and fintech companies in the credit card business. However, there are more options for getting a low-interest credit card in conventional banks than at neo banks. Finding a low-interest credit card that meets all of your wishes can be an utterly daunting venture. Many human beings may turn away from it because of the sheer amount of data provided to potential customers whilst applying for a low-interest credit card. This AskWallet blog post will look at some of the best low-interest cards and where to get them?

Ibrahim Busari
Ibrahim Busari
Ibrahim is a fintech writer at AskWallet

Fact checked! This material is written by an expert.

12 min read 12.08.2021 66

What is a low-interest credit card?

What makes a low-interest credit card is a well-known terminology known as APR. APR means the annual percentage rate or, in other words, the amount of interest you would be paying annually on a credit card. However, keep in mind that the APR can be fixed or variable. 

So, what constitutes a low-interest rate when we are talking about credit cards? With credit cards, low variable interest percentages range from 10- 20 percent. This APR is considered to be a low-interest rate. However, there are also credit cards with 0% APR which are usually a perk for a period of time. Banks like capital one are famous for providing low interest and 0 APR credit cards. 

Most low-interest rate credit cards are usually accompanied by a very lucrative 0% APR introductory period. This period usually lasts between 12-15 months, allowing you to avoid interest on money transfers, purchases online and in-store.

Best Low-interest rate credit cards 

Capital one 

Capital One is a household name in the financial business. The Capital One Financial Institution app allows consumers to manage their bills, credit cards, make transfers, purchases, and much more! Furthermore, individuals may check their credit ratings from the comfort of their own homes at any time.

Capital One offers its customers various options when it comes to selecting a credit card with no annual fee. Users may also deposit checks, debit/credit cards, and transfer cash to relatives and friends. We'll put them to the test below to see how good they are:

Capital One Quicksilver Cash Rewards Credit Card

The outstanding feature of this card is simply its introductory APR of 0% for 15 months. This is a fantastic offer for anyone looking for a credit card with no interest. However, once the grace period expires, customers may expect an APR ranging from 15.49 per cent to 25.49 per cent. This fluctuates based on various factors, including the amount of risk the bank is assuming and the type of cardholder you were during the promotional period.

If you're searching for a low-interest credit card with a slew of perks, like cashback and a reasonable initial APR, you've come to the right place. The Capital One Quicksilver Cash Rewards Credit Card offers cardholders a 1.5 percent return on all transactions made with the card.

When you consider that there are no annual fees or foreign transaction fees and that you have the option for a low price, you should have no trouble adding this card to your wallet.

     Pros 
    • A $200 cashback bonus when you spend your first $500 using the low-interest credit card.
    • The Quicksilver card offers unlimited 1.5 per cent cashback, unlike other cashback cards that require you to sign up for bonus categories.
    • The yearly charge for the Quicksilver card is waived. Without paying an annual fee, you may receive incentives.
    • No foreign transaction fee
    Cons
    • You will need to have good to excellent credit to get approved for this card
    • The cashback is very little at 1.5% 
    Capital One SavorOne Cash Rewards Credit Card

    The Capital One SavorOne Cash Rewards Credit Card is a multifunctional credit card with a fifteen months introductory APR of 0%. This 0% interest card is multifunctional because it can be used for small and huge bills online or in-store. However, remember that cardholders will have to pay a regular APR after the grace length is over, which could be different for every cardholder. 

    In addition, the card comes with cashback features that may be redeemed. Users can get cash back when they spend money at restaurants, streaming services and supermarkets and others. 

    Capital One Venture Rewards Credit Card

    When it comes to frequent travellers' bags, this low-interest credit card is one of the most frequently used. The card has received a lot of airtime, both on business shows and on morning shows where it is actively pushed. In essence, the credit card is sold to the buyer. The cards, however, aren't designed to compete with the cards that already control a large portion of the market.

    Several bonuses and advantages are available with this card as compared to standard airline miles rewards credit cards. It gives frequent rewards for purchases made using the card. They may be redeemed for flights on any airline or other travel expenses ( rental insurances and others)

    The Venture Rewards Card is unrivalled if you're searching for airline miles rewards credit cards, which makes it easy to acquire and redeem airline miles rewards. Let's take a look at some of the card's features:

      Pros 
      • Outstanding level of compensation;
      • adaptable incentive satisfaction;
      • There is no overseas transaction fee.
      • Incentives for signing up
      Cons 
      • There is a yearly charge.
      • The monetary redeeming rate is half the cost of the trip. 
      • It is necessary to have good or excellent credit to be approved for the card.
      Thinkmoney

      Thinkmoney is a fintech organisation imparting several financial services, inclusive of credit cards and loans. The top product that the enterprise gives is a managed bank account designed to help people manipulate their price range. 

      Thinkmoney offers budgeting software to help its users take control of their funds. However, their budgeting software splits the user's cash into separate money owed: an installation for costs and payments and the opposite for regular spending. Keep in mind that only users over the age of 18 can create an account with thinkmoney. In addition, thinkmoney doesn't perform any credit score check throughout the utility procedure. Also, thinkmoney isn't insured with the aid of the FSCS. 

        Pros 
        • Thinkmoney has a quick turnout on the utility. The organisation has been quoted saying they have got a turnout period of 60 seconds. 
        • Users will get the same interest rate on every transaction made with a credit card. 
        • You have to get access to your account online from your cellular device, as well as alerts for charges and money coming into your account.
        • This credit score card might be very beneficial for users with bad credit scores and feature a more challenging time getting a line of credit scores from different economic institutions. 
        • Thinkmoney is very honest, and the fee you see is the fee you get if you have a line of credit. 
        Cons
        • If you have in no way had a line of credit earlier than then, thinkmoney isn't the valid credit card for you.
        • Thinkmoney takes a lot of risk by giving humans horrid credit score rankings, making the APR one of the highest in the marketplace.
        Ibrahim Busari
        As a fintech writer at AskWallet, he uses his metaphorical pen to guide you through the world of EMIs. He is an Ural Federal University Alumni and has been working in the financial and iGaming industry since 2016.