Credit cards are notoriously known for having extremely high interest rates. In fact, the average interest rate for credit cards is 15% – that’s much higher than the interest rates you can get on a personal loan.
Unfortunately, these high interest rates can pack a big punch when it comes to paying back your consumer debt. If you only pay the minimum amount you owe, you’re paying a lot more toward interest and not making much progress toward your principle balance. Having a lower interest rate can help you pay off your debt quicker, especially if you tend to keep a balance on your card each month.
Luckily, not all credit cards have insane interest rates. There are quite a few out there in the 6% range.
If you’re unable to pay your entire credit card balance off in full each month, these low interest rate credit cards are a good alternative for you. However, many of these cards are offered by credit unions with strict memberships policies, so you may not be eligible.
One thing to note: all of these credit cards offer variable rates, which means your rate is subject to change. Many of these cards have a cap of 18% APR so your rate won’t go higher than that, but it’s something to check. Most cards also offer rates that vary based on the prime rate. The prime rate is the lowest interest rate at which banks are willing to lend money.
Apple Federal Credit Union Educator Credit Card
Annual fee $0 For First Year $0 Ongoing APR 8.99%-18.00% APPLY NOW Secured on Apple Federal’s secure website
This credit card has an introductory rate of 3.99% APR for the first 12 months for qualifying members. Be aware this rate increases to between 8.99% – 18.00% APR after the promotional period expires. The rate you receive is determined by your creditworthiness, and the APR varies with the prime rate.
The maximum credit line is $35,000, and you have the option to skip a payment during July, August, and September if you meet the eligibility requirements. If you skip a payment, interest still accrues, so only skip if you can’t come up with your minimum payment.
There are no miscellaneous fees charged for regular use of this card – no annual fee, account set-up fee, cash advance fee, or foreign transaction fee.
You have a grace period of 25 days on purchases made, but if you’re late 15 days late (or more) making a payment, you’ll have to pay $25 or the minimum amount owed, whichever is less. There’s also a returned payment fee of $25 if your payment doesn’t go through.
Other fees to watch out for include a statement copy fee of $5 (you’ll receive e-statements for free), a $5 card replacement fee, and a $20 stop payment fee.
Because this is a credit card from a credit union, you must be eligible to become a member to apply for the card. According to the disclosure agreement , “Applicants must be currently employed by an Apple Federal Credit Union Select Employee Group School System: Clarke County, Fairfax, Falls Church, Frederick County, Loudoun County, Manassas City, Manassas Park, Prince William and Stafford AND have a minimum $1,000 Direct Deposit.” Apple Credit Union is based in Virginia.
Kitsap Credit Union Gold Card
Annual fee $0 For First Year $0 Ongoing APR 7.15% APPLY NOW Secured on Energy Plus’s secure website
This credit card has a 7.15% variable rate APR. The maximum interest rate this card can have is 18%, and there’s no annual fee.
This card comes with a 25 day grace period on purchases, no fees for cash advances, travel accident insurance up to $400,000, and no balance transfer fees.
In order to qualify for the Gold Card (it offers Classic, Standard, and Platinum choices as well), you must have an annual income of $30,000.
To become a member of Kitsap Credit Union, you must live, work, worship, or attend school in Washington State. If someone you’re related to resides there, or has membership, you can also apply.
Abri Credit Union Visa Platinum Credit Card
Annual fee $0 For First Year $0 Ongoing APR 8.15%-17.15% APPLY NOW Secured on Abri Credit Union’s secure website
Abri’s Visa Platinum Credit Card also offers a 8.15% – 17.15% variable rate APR. These rates are subject to change monthly with the prime rate. Your rate is based on your credit score.
Abri also offers a balance transfer promotion: 1.99% APR for 6 months, after which time you’ll receive the normal variable rates.
The credit line ranges from $500 to $25,000, there are no balance transfer fees, there’s a 25 day grace period on purchases made, and there’s no annual fee.
There is a cash advance fee of 1.5% of the amount requested – this fee maxes out at $50. There’s also a foreign transaction fee of 1% of the amount of the transaction in U.S. dollars.
Late fees and returned payment fees are both $25, while a card replacement fee is $5.
To join Abri Credit Union, one of the largest Credit Unions in Illinois, you must live or work in DuPage, Will, Grundy, or Kendall Counties. Parts of Kane and Cook Counties are eligible as well. You can also become a member if a relative has membership.
Visa Gold Card by Educators Credit Union
Annual fee $0 For First Year $0 Ongoing APR 7.25% APPLY NOW Secured on Educators’s secure website
Educators Credit Union offers a Visa Gold Card at a current variable rate of 7.25% APR. It also doesn’t come with an annual fee.
Those with well-established credit can qualify for the Visa Gold Card.
The normal credit limit of this card ranges from $2,000 to $5,000 and over, and there’s a 25 day grace period.
If you’re late on a payment by 10 days or more, you’ll have to pay a fee of $10. If your payment is unsuccessful, you’ll have to pay a fee of $30.
There are no fees on cash advances or balance transfers, and there are no foreign transaction fees. There’s a rewards component to this card, and you earn one point for each $1 purchase.
Additionally, you’re eligible for $500,000 worth of travel accident insurance, rental car collision coverage, and extended warranties.
To become a member of Educators Credit Union, you must live and work in Southeastern Wisconsin. Special preference is given to those in education, healthcare, and government fields.
Visa® Platinum Credit Card by Whitney Bank
Annual fee $0 For First Year $0 Ongoing APR 13.99%-17.99% APPLY NOW
The Visa® Platinum Credit Card from Whitney Bank has a 13.99% – 17.99% variable APR. There’s an introductory offer of 0% APR for 7 months on purchases.
There’s also an introductory APR of 1.90% for 12 months for balance transfers.
If you’re late on making a payment after 10 days, a late fee of $15 will be incurred. If your payment gets returned, you’ll be subject to a $25 fee. Balance transfer fees are equal to 3% of the amount you’re transferring, up to a maximum of $50 for each transfer. Cash advance fees are equal to 3% of the amount requested.
Benefits of this card include $500,000 travel accident, auto rental, and baggage delay insurance. Additionally, new cardholders are automatically enrolled in the Whitney Points Plus program, so you’re eligible to earn rewards.
You must already have an account with Whitney Bank to apply for this credit card online. Otherwise, you can visit a branch to apply (it serves the Gulf South area). If you do have an account with them, you’ll be able to fill out the online application.
Lake Michigan Credit Union Prime Platinum Card
Annual fee $0 For First Year $0 Ongoing APR 8.90%-16.90% APPLY NOW Secured on Michigan State Federal’s secure website
Lake Michigan’s Prime Platinum Card has a 8.90% – 16.90% variable APR.
There’s no annual fee with this card, the maximum credit line is $25,000, and you’re eligible for free car rental insurance, 24 hour member service, a 25 day grace period, and emergency card replacement.
There are no balance transfer fees, although there’s a cash advance fee of 3% of the amount requested. There’s also a 1% foreign transaction fee.
If you’re late on a payment, you’ll incur a fee of up to $15 on balances less than $1,000, and up to $25 for balances of $1,000 or more. If your payment is returned, you’ll have to pay a fee of up to $25.
Anyone can become a member of the Lake Michigan Credit Union by donating at least $5 to in the West Michigan Chapter of the Amyotrophic Lateral Sclerosis Association. You are also eligible if you work, reside, attend school, or worship within any county in the State of Michigan’s lower peninsula. Finally, you can join if an immediate family member is a member.
VISA Platinum Credit Card by Fort Community
Annual fee $0 For First Year $0 Ongoing APR 8.90%-13.96% APPLY NOW Secured on Fort Community’s secure website
This credit card has an interest rate of 8.9% – 13.96% variable (it’s based on the prime rate + 3.99% APR), but it’s still less than half the average interest rate of most credit cards.
There’s no annual fee, no balance transfer fee, and no transaction fee for purchases.
The late payment fee is up to $10 if you’re late on your payment by 10 days or more, and the returned payment fee is up to $12. There’s also a cash advance fee of 3% of the amount requested, and a 1% foreign transaction fee.
To be eligible for membership to the Fort Community Credit Union, you must live or work in Dane, Dodge, Jefferson, Rock, Walworth, or Waukesha County in Wisconsin.
Always Get the Best Rates
Anytime you’re looking to borrow money, you should be making sure you’re getting the best rates possible. Otherwise, borrowing becomes a lot more expensive than it needs to be.
If you’re not eligible to apply for any of these cards, try checking your own local credit union to see what rates they offer. Aim to have an interest rate of less than 7% on your credit cards, but also make it a goal to pay off your balance in full every month to avoid every paying interest.
Find other options on our low interest rate credit cards comparison table here .
The post 7 Low Interest Rate Credit Cards – December 2017 appeared first on MagnifyMoney .