Low Interest Credit Card



The low interest credit card section is organized as follows. Firstly, we highlight the features to look out for when choosing a low interest credit card. Then we suggest a few recommendations. This is then followed by our directory of low interest credit cards.

Important features to consider when choosing a low interest credit card

There are a few things and features to look out for when you are comparing low interest credit cards. Below is a list of them :

Which method is used to calculate monthly balance? - Most credit cards used to apply the average daily balance method (including new purchases) to calculate your monthly balance. However, many credit card issuers these days (including a few major credit card issuers) are using the 2-cycle average daily balance method (including new purchases). If your balance is not consistent every month or if you are in the process of reducing your credit card debt, then the 2-cycle method will probably result in higher monthly balances on average. You can see our recommended list of low interest rate credit cards which use the average daily balance method here.

"Monthly" or "Daily" periodic rate? - In the past most credit card issuers use the monthly periodic rate to calculate your finance charges. Using the "monthly periodic rate" involves dividing the apr by twelve and multiplying that with your monthly balance. Using the "daily periodic rate" involves dividing the apr by 365 and multiplying that by the average daily balance. The use of "daily periodic rate" results in a cardholder paying a higher effective rate (all things being equal) because of the compounding effect.

Grace Period - Most credit cards have a 20 day grace period before you incur any finance charges. Some have a 25 day grace period. Though this is not as important as the previous two factors, getting a card that gives you 25 days grace period would be better.

Recommeded Low Interest Credit Cards

pulaski bank visa/mastercard
The Pulaski Bank MasterCard® or VISA® best credit cards probably has the lowest apr in the market. The apr is fixed and at the moment stands at 7.99%. What is more important is that they use the "monthly periodic rate" rather than the "daily periodic rate" used by most credit cards. The average daily balance method (including new purchases) is used as well rather than the 2-cycle method. This is also also one of the rare credit cards that give cardholders a 25 days grace period. The only drawback is that there is an annual fee of $35.00 for the regular version and $50.00 for the gold card version. Hence, you have to weigh the difference in savings you get from a lower apr versus the annual fee.

pulaski bank isa gold
Unlike the regular Pulaski Bank card mentioned above, the Pulaski Bank Visa® Gold has a higher fixed apr (currently at 9.50%), but has no annual fee. It uses the "monthly periodic rate" and average daily balance method (including new purchases) to calculate finance charges. It also gives cardholders a 25 days grace period.

citi simplicity card
The Citi Simplicity(SM) Card is Citi's latest card offering. It has a low apr of prime rate plus 2.99%. What sets this (and other Citi credit cards) apart is that it has a very good 0% apr offer. You get a 0% apr on balance transfers for 12 months from the date of account opening. You also get a 0% apr on balance transfers for 12 months from the date of transfer. You are given 12 months to do the first balance transfer. Cardholders will also not be charged a late fee if they have made a purchase or cash advance within the same period.

Directory of Low Interest Credit Cards


We will organize our directory of low interest credit cards the following way. We will first highlight basic, no-frills credits with low apr. We will then have a seperate section of reward credit cards with low apr.



Pulaski Bank Mastercard or Visa
Intro APR 0% APR for balance transfers for 6 billing cycles from balance transfer date.
APR 7.99%
APR Method Monthly Periodic Rate
Bal Calc Method Average Daily Balance
Grace Period 25 days
Annual Fee $35.00 or $50.00
pulaski bank visa
Review
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Pulaski Bank Visa Gold
Intro APR 0% APR for balance transfers for 6 billing cycles from balance transfer date.
APR 9.50%
APR Method Monthly Periodic Rate
Bal Calc Method Average Daily Balance
Grace Period 25 days
Annual Fee No annual fee
pulaski bank isa gold
Review
Apply Online
Citi Simplicity Card
Intro APR 0% APR for balance transfers for 12 months from date of transfer
0% apr on purchases for 12 months from account opening
APR Prime Rate plus 2.99%
APR Method Daily Periodic Rate
Bal Calc Method Average Daily Balance
Grace Period 20 days
Annual Fees No annual fee
citi simplicity card
Review
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Citi Platinum Select Card
Intro APR 0% APR for balance transfers for 12 months from date of transfer
0% apr on purchases for 12 months from account opening
APR Prime Rate plus 3.49%
APR Method Daily Periodic Rate
Bal Calc Method Average Daily Balance
Grace Period 20 days
Annual Fees No annual fee
citi platinum select card
Review
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ATT Universal Platinum Card
Intro APR 0% APR for balance transfers for 12 months from date of transfer
Lowest APR Libor plus 6.49%
APR Method Daily Periodic Rate
Grace Period 20 days
Annual Fees No annual fee
att universal platinum card
Review
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Chase Platinum Card
Intro APR 0% for 12 billing cycles (balance transfer)
APR Prime Rate plus 3.99% to 15.24%
APR Method Daily Periodic Rate
Bal Calc Method 2-cycle average daily balance
Grace Period 20 days
Annual Fee No annual fee
chase platinum card
Full Review
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Discover Titanium Card
APR Prime Rate plus 2.99%
APR Method Daily Periodic Rate
Bal Calc Method 2-cycle average daily balance
Grace Period 25 days
Annual Fees No annual fee
discover titanium card
Review
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HSBC Platinum Mastercard
Intro APR 0% APR for purchases and balance transfer for 12 months
APR Prime Rate plus 3.74%, 6.74% or 9.74%
APR Method Daily Periodic Rate
Bal Calc Method Average Daily Balance
Grace Period 20 days
Annual Fees No annual fee
hsbc mastercard
Review
Apply Online hsbc platinum mastercard''></font></b></td>
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reward and cash back low interest credit card directory




Related Articles


How the 2-cycle average daily balance method affects your finance charges?
Find out how the various methods of computing monthly balances can affect your finance charges. Depending on your spending habits or whether you are in the process of reducing your credit card debt, understanding this will help you choose the right credit card.

What is your real effective interest rate on your credit card?
Most do not realize that the apr is not the true interest rate you are paying on your loans or credit card balances. The real effective rate depends on whether one's credit card uses the "monthly periodic rate" or the "daily periodic rate" to calculate finance charges. Find out how this work.





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