Best Low-Interest Credit Cards — January 2021

One of the biggest credit card myths is that it’s good to carry a small balance month-to-month. However, this couldn’t be further from the truth. Choosing not to pay your balance in full every month just means you’re wasting money on interest payments. 

But sometimes, you don’t have a choice. Large, unexpected expenses can strike at any time. An appliance could break down. Your car may need a new part. Your employer lays you off. The list goes on. 

According to US News My Money, it’s best to take a personal loan for balances that will take longer than two years to repay. But if you believe you can eliminate your debt in less time than that, then check out US News My Money’s top picks for the best low-interest credit cards for January 2021. These cards offer zero-interest introductory periods between 12 and 21 months.

Best 0% Intro And Balance Transfer APR Credit Card

Citi Diamond Preferred

Regular APR: 14.74% – 24.74% (variable)

Penalty APR: Up to 29.99% (variable)

Annual fee: $0

Credit score requirements: Excellent

Cash advance fee: 5% per withdrawal, $10 minimum

Foreign transaction fee: 3%

 

With the Citi Diamond Preferred, you can enjoy zero interest on purchases and balance transfers for 18 months (you must complete balance transfers within four months after opening your account). Each balance transfer costs $5 or 3% of the amount you are consolidating, depending on which is more. 

You can check your FICO credit score for free online and enjoy exclusive access to a wide variety of concerts, dining experiences, sports events, and more with Citi Entertainment. Additionally, you can enjoy peace of mind when you use the Citi Diamond Preferred since it comes with $0 Liability on Unauthorized Purchases plus Citi Identity Theft Solutions. 

 

Best Cashback

Discover it Cash Back

Regular APR: 11.99% – 22.99%(variable)

Penalty APR: Up to 29.99% (variable)

Annual fee: $0

Credit score requirements: Good to Excellent

Cash advance fee: $10 or 5% per withdrawal, depending on which amount is more

Foreign transaction fee: None

 

The Discover it Cash Back is one of the best low-interest credit cards as well as one of the best cashback cards for everyday purchases. New cardholders can enjoy zero interest on purchases and balance transfers for their first 14 months.

Plus, Discover will automatically match all of your cashback collected during the first year if you sign up now. In other words, if you earn $150, you can double it to $300.

You can earn 5% cashback in a variety of rotating spending categories that change every quarter, up to the quarterly limit. That includes Amazon, supermarkets, gas stations, dining, drugstores, and purchases made with PayPal (activation required). Once you meet the limit, you can still enjoy unlimited 1% back on everything else without registering. 

Discover’s cashback rewards never expire for the life of the account, and there are no restrictions to redeem them. And since most merchants accept Discover, you’ll have no problem jumpstarting your rewards.

 

Best Travel Benefits

Discover it Miles

Regular APR: 11.99% – 22.99%(variable)

Penalty APR: Up to 29.99% (variable)

Annual fee: $0

Credit score requirements: Good to Excellent

Cash advance fee: $10 or 5% per withdrawal, depending on which amount is more

Foreign transaction fee: None

 

Like the Discover it Cash Back, the Discover it Miles credit card will double every mile you collected during your first 12 months. In other words, if you accumulate 35,000 miles, you can receive 70,000 automatically. You don’t have to worry about activation, spending requirements, or reward limits — it’s just that easy.

Besides that, you can earn 1.5 miles for each dollar on any purchase without paying an annual fee. You can redeem your miles for cash or statement credit for your next plane ticket, rideshare, gas, or dining purchases. There are no blackout dates or expiration to your rewards, either.

Right now, Discover it Miles customers can redeem their miles for cash to pay their monthly statement. Additionally, you pay no interest on purchases for 14 months (the balance transfer APR is 10.99% for the same duration). Balance transfers cost 3% or up to 5% on later transfers.

This card offers convenient credit freeze features that you can use with the Discover mobile app or website to stop fraudulent purchases, cash advances, or balance transfers. Plus, you can stay on top of your credit health with free FICO credit score access and Discover credit monitoring.

 

Source
  • Harzog, Beverly. “Best Low-Interest Credit Cards.” U.S. News & World Report, U.S. News & World Report, 8 Jan. 2021, creditcards.usnews.com/low-interest.
Ian Schindler