As credit card issuers continue to look for new ways to generate revenues lost from the Credit Card Act of 2009, finding a low interest credit card to make expensive purchases, when saving for the purchase ahead of time is not an option, is becoming more and more difficult. Not too long ago a 6% APR was commonplace among the nation’s best credit cards, but these days that is nothing more than a memory.
Below you will find a short list of low-interest credit cards. If you have any experiences with these cards, or have any other suggestions, please share them in the comments below. I will adjust this list based on recommendations from readers.
PenFed Promise VISA Card. The PenFed Promise VISA offers cardholders an introductory purchase APR of 7.49% for the first 36 months after that, the APR will vary with the market based on the Prime Rate, and is currently 9.99%. Cash advances can be made without a fee, and the cash advance APR will vary with the market based on the Prime Rate and is currently 9.99%. The PenFed Promise VISA does not carry an annual fee and also does not carry a rewards program. In order to submit an application for this card PenFed requires you to be PenFed Credit Union member. To join PenFed Credit Union, you, or someone in your family needs to be associated with the military or the American Red Cross. You can get around this requirement and establish membership status by joining either the National Military Family Association or Voices for America’s Troops with a low one time fee. Be sure to note PenFed Credit Union membership does not guarantee your credit card application will be approved, you will still need to go through the normal credit card application process.
Simmons First Visa® Platinum. The most vanilla of all credit cards ever created, the Simmons First Visa® Platinum card offers cardholders a very low variable purchase APR of 7.25%. That is the only thing worth mentioning about this credit card because there is no introductory offer or a rewards program. Owning the Simmons First Visa® Platinum doesn’t cost anything as there is no annual fee.
Capital One® VentureOne® Rewards Credit Card. Capital One is better known for their rewards and with that in mind they do offer the Capital One® VentureOne® Rewards Credit Card, providing cardholders a variable APR of 11.9%-19.9% based on your creditworthiness. In addition to a fairly low APR, for a rewards card, each dollar spent will net cardmembers 1.25 miles, and all international purchases can be made with no foreign transaction fee. The card offers an introductory APR of 0% on purchases until December 2014 after that the purchase APR will vary with the market based on Prime and is currently 11.9%-19.9% variable, based on your creditworthiness. The Capital One® VentureOne® Rewards Credit Card does not carry an annual fee.
Citi® Dividend Platinum Select® Visa® Card. The Citi Dividend Platinum Select Visa Card offers an introductory APR of 0% on balance transfers and purchases for 12 months. After the introductory period, purchases and balance transfer APR’s will vary with the market based on the Prime Rate, and is currently between 12.99% and 22.99% variable depending on the applicant’s creditworthiness. There is a balance transfer fee of 3 percent of each balance transfer; $5 minimum. This card comes with a promotional offer where new cardholders can earn $100 cash back after making $500 in purchases within the first three months of account opening. Included with this card is a rewards program that offers 5 percent cash back on eligible purchases on categories that change each quarter, right now, on eligible purchases within the Hilton Portfolio, car rental agencies, movie theaters and theme parks from 7/1/14 – 9/30/14. Enrollment each quarter is quick and easy. And 1% cash back on all other purchases. You can earn a total of $300 cash back with this card per calendar year, excluding the $100 cash back with this offer. See Citi Dividend Card Reward Program Information. The Citi Dividend Platinum Select Visa Card does not carry an annual fee. Click on the card name link to see pricing details and additional information.
Updated July 1, 2014 and originally published September 17, 2010. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.