Best low APR credit cards
APR is the abbreviation for annual percentage rate. It refers to the total cost of borrowing that you incur per year including the charges on debt expressed as a percentage. Many people refer to it as the total cost of borrowing money. It includes interest rates, points, mortgage fees, and other charges that you have to pay to get credit. Having a low APR credit card, therefore, means that the overall cost of borrowing the loan is low.
Some of the terms that may help you determine whether an APR is high or low include:
- Balance transfer– this is the rate of transferred debt from a card to another/ somewhere else.
- Cash advance– this is the rate chargeable when you use your card to withdraw cash from an ATM. The grace period does not apply on a cash advance.
- Variable- this means that your rate varies depending with the changes occurring to the prime rates. When the prime rates go up, then your rate increases in equal amount and vice versa.
- Ongoing – this is the regular applicable rate after the introductory period is over/expires.
- Introductory– this is the rate offered when you open an account. It lasts for half a year or a full year. It is also called the teaser rate.
- Purchase – this is the rate charged when you make purchases with your card. It may have a grace period of about 3 to 15 months. It is higher for people who carry debt from month to month since interest accrues.
Best low APR credit cards
Capital One Quicksilver Cash Rewards Credit Card
This card is popular due to its 0% introductory period, which lasts for 15 months and flat cash back rate. It has no annual fees and the regular annual percentage rate ranges from 15 to 25% variable rate. However, these rates are only applicable to people with good to excellent credit scores of 690 and above. You do not need to sign up to earn rewards or pay foreign transaction fees. For each purchase that you make, you earn a 1.5% cash back, which is unlimited/ without expiry. This card has a onetime cash bonus of $250 that you activate by spending $500 during the first three months after opening the account.
American Express Cash Magnet Card
This card is similar to Capital One Quicksilver Cash Reward Card in terms of popularity and flat rate cash back. It has a 0% introductory annual percentage rate on all purchases for a period of 15 months. The regular APR varies and ranges from 13 to 23% with no annual fee. It also has great rewards even after the introductory period runs out. However, it is available to users with a good to excellent credit score of 690 and above.
It is also among the low APR cards that have no annual fee. It is popular for cash bonus categories and a 0% introductory rate that lasts for 14 months on both purchases and cash transfers. It is acceptable in all the places that take credit cards. However, you need to have a good to excellent credit score of 690 and above to benefit from the low regular rates of 11 to 22% variable annual percentage rates.
Apart from earning 5% cash on every purchase at different stores, Discover it sends you free update alerts when your social security number is traced in any dark website. What’s more, Discover it combines all your rewards and presents them to you annually.
Citi Diamond Preferred Card
This card is popular for its long 0% introductory period, which lasts for 18 months. The introductory rate applies to both purchase and balance transfers during the first four months of account opening. Since this card does not earn rewards, it has a lot of value even after the introductory period expires. The regular annual percentage rate ranges from 14 to 24%, which also varies depending on your credit scores. Although the Citi Diamond Preferred Card does not have an annual fee, it is only available to users who have an excellent score of 720 and above.
Low APR credits are great for users who pay their monthly balances on time and have good to excellent credit score. If you are seeking to build your credit history or score, however, secured cards work best for you.