Would you like a lower interest rate on your credit card? For those who tend to carry a balance, obtaining a lower interest rate may be one of the more important considerations when shopping for a credit card. In fact, credit card interest charges can be so costly that it can outweigh other considerations, such as earning rewards or having access to better benefits.
When most people talk about interest rates, they are referring to a credit card’s standard interest rate. However, other important terms that users should look for when shopping for a card include the rate for balance transfers, cash advances and any penalty interest rate that can be imposed in the case of a missed payment. And in addition to the standard rates, credit cards often feature special low promotional rates.
To make matters more confusing, many credit cards offers list multiple rates, or a range of rates, with individual cardholders being assigned a rate based on their creditworthiness. (If you’re not sure where you stand, it can help to check your credit scores before you apply for a card. There are many ways to get your credit scores for free, including Credit.com.)
Unfortunately, cardholders will only learn which rate they receive after their application has been approved, but you will generally receive a lower rate from a card with a lower range of rates, than one with a higher range.
To sort through the hundreds of credit cards that are offered to U.S. consumers, and find the lowest rate, it can help to look for those that offer fewer rewards and benefits. Simply put, including these extra features cost card issuers money, and they will typically charge a higher interest rate to make up for those expenses.
So when we looked for the best low-interest credit cards, we looked at the cards with the lowest standard interest rates for purchases, not including limited-time promotional offers. And when a range of interest rates were offered, we chose the one with the best rate offered to applicants with excellent credit. However, cards that offer a single interest rate were considered more favorable than cards that offered a range of rates.
With that in mind, here is the best low-interest credit card in America:
The Winner: Simmons Bank Visa Platinum
Why it won: This card offers the lowest standard interest rate available.
The rates: The standard interest rate for purchases and balance transfers is just 7.25% APR, and its cash advance rate is only 11.25% This card offers a 25-day grace period, has a 3% cash advance fee and a 2% foreign transaction fee.
The features: Although this is mostly a no-frills card that doesn’t offer rewards, it does have a few basic features that are important, such as car rental insurance and emergency credit card replacement. In addition, this card now comes with an EMV smart chip to improve security and compatibility with the next generation of credit card terminals.
If you want to see the other picks, check out the full rankings of the Best Low-Interest Credit Cards in America.
- An Expert Guide to Finding a No-Annual-Fee Credit Card
- Chase Slate Review: 0% Interest for 15 Months
- How to Get a Credit Card (Even With ‘Fair’ Credit)
This article originally appeared on Credit.com.
This article by Jason Steele was distributed by the Personal Finance Syndication Network.