Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Cards With Low Interest Rates

    Having a credit card with low interest rate can be beneficial for those looking to buy some expensive items through the use of credit cards. Usually, interest rates in the range of 1.5% to 2.99% per month are considered as low when it comes to credit cards. Here, we take a look at the pros and cons of having a credit card with low interest rates, who should get a low interest credit card, etc.

    Advantages of credit cards with low interest rates

    There is no denying the fact that having a credit card with low interest rates in quite beneficial. Let’s take a look at some of the benefits:

    • Savings on annual fee: Generally, these cards carry a lower annual fee than most of the other credit cards. The credit card company may also waive the annual fee if a certain amount is spent on the card every year.
    • Savings on interest: Since the credit card carries a low interest rate, if the cardholder chooses to use the rollover credit facility, then the interest incurred on the bill will be much lesser. In case the individual is unable to pay the entire credit card bill in one month, the interest charged on the balance will not be exorbitant.
    • Come with lower annual percentage rate: Low Interest credit cards come with lower annual percentage rate. This enables those having credit cards with low interest to continue availing lower interest rates even after the introductory period.
    • Helpful in paying current credit card debt: With the help of low interest credit cards one can pay off the accumulated credit card debt. This can be done by individuals without needing to pay any extra interest.

    Disadvantages of Low Interest Credit Cards

    Though there are advantages that can be availed when it comes with having a low interest credit card, it is not free of disadvantages.

    Here are some of the disadvantages that are associated with it:

    • Not many perks available: Other than getting low interest rates, an individual is not eligible for many perks. Unlike other credit cards, low interest credit cards may not offer individuals extensive rewards, cash back, air miles, offers and discounts.
    • Offered to high-networth individuals: Lower interest rates are offered to HNIs to attract them. Banks provide such perks to these individuals to ensure their business comes to them.
    • Offered to those who have high credit scores: Moreover, the cards are designed for only those individuals with good credit profiles. If you are an individual who has a clean credit record, has made timely payments on bills and EMIs, and has a good spending pattern, you might be eligible for lower interest rates on your credit card.
    • Balance transfers incur a fee: Though low interest cards offer an individual to pay off current debts, one needs to be careful while doing a balance transfer. This is because credit cards having low interest rates charge a fee on all balance transfers. Hence, one needs to be aware while transferring other credit card debt to the low interest credit card.
    • Cash advances come at high interest rates: Low interest credit cards come with high interest rates when it comes to cash advances. Hence, it is not quite recommended to go for cash advances on the basis of low interest credit cards.

    Who can Apply for a Low Interest Credit Card?

    Banks are willing to take the risk of non-repayment on credit cards when it comes to HNIs and those with good credit scores. In most cases, banks offer these cards to high-networth individuals whom they think are eligible for such benefits.

    As already stated, low interest cards are designed for those with strong credit profiles because the risk borne by the banks is much lower. So, if you wish to avail low interest rates on your credit card, you need to make sure you check your credit report regularly.

    Ensure you pay your credit card dues and any other loan EMIs on time. Have a balance between secured and unsecured debt to ensure your credit profile is favorable. In time, if you are able to secure a high credit score, you can approach your bank to see if you are eligible for a credit card with lower interest rates.

    Best Low Interest Credit Cards of 2021

    SimplySAVE Advantage SBI Card

    • SBI SimplySAVE Advantage Credit Card comes with a joining fee of Rs.499, and a cash advance fee of 2.5% per month. The card also offers other attractive features such as Cash Point for every Rs.100 spent, up to 2.5% value back with cash points earned from grocery and departmental store shopping and a 50 days credit free period.

    HDFC Infinia Credit Card

    • The HDFC Infinia Credit Card is a credit card with a regular interest rate and cash advance fee as low as 2.5%. However, the joining fee and renewal is high at 30,000 at 10,000 respectively. The card does not have a pre-set spend limit and also lets you collect 5 Reward Points with every transaction worth Rs.150.

    Citibank Rewards Credit Card

    • With absolutely zero joining fee, the Citibank Rewards Credit Card offers a regular interest rate of 3.75% p.m. and a cash advance fee of 2.5%. It comes with attractive features such as up to 10X Rewards, every time you shop from some popular apparel and department stores.

    ICICI Bank Instant Platinum Credit Card

    First Citizen Citi Credit Card

    • The First Citizen Citi Credit Card from Citibank is available at a regular interest rate as low as 2.5% pm and a cash advance fee of 2.5%. The card comes with a facility to earn reward points on shopping at exclusive retail stores in India. You also get a fuel surcharge waiver on purchasing fuel at authorised fuel stations in India. The annual fee is also waived off if you spend Rs.30,000 and above on your credit card annually.

    Citi Premier Miles Credit Card

    • Citibank offers Citi Premier Miles Card with 2% cash advance fee. The card comes with a facility to earn mile points on airline transactions and shopping on websites such as Amazon, Myntra, and Flipkart. The card also doesn’t have any expiration date which allows you to use the card whenever you want.

    SBI Prime Advantage Credit Card

    • The SBI Prime Advantage Credit Card can be availed at a low interest rate of 1.99% pm and a cash advance fee of 3.5% pm. Although both joining fee and renewal fee is quite high at Rs.2999, you can earn up to 10 reward points from your shopping at Departmental Stores, Dining or International spends.

    ICICI Platinum Chip Credit Card

    • With a regular interest rate as low as 3.40% p.m. and cash advance fee at the same rate, the ICICI Platinum Chip Credit Card is a great choice if you are looking for credit cards with low interest rates. It does not require any joining fee, neither does it have any renewal fee, making it all the more affordable.

    SBI Advantage Plus Credit Card

    • The SBI Advantage Plus Credit Card charges a meagre joining as well as renewal fee of Rs.500. It also comes with the minimum regular interest rate of 2.25% p.m. and a 2.25% p.m. cash advance fee. Additional feature includes a credit free period of 50 days.

    HDFC Regalia Credit Card

    • At a low regular interest rate of 3.6% p.m. and a 2.5% cash advance fee, this luxury card makes an attractive deal. The HDFC Regalia Credit Card requires cardholders to pay a joining fee of Rs.2500 and a renewal fee of the equivalent amount. Additionally, it grants a welcome benefit of 2500 Reward Points.

    HSBC Cashback Credit Card

    • With attractive features such as Zero lost credit card liability benefit, the HSBC Cashback Credit Card does not incur any joining fee but a renewal fee of Rs.750 is charged by HSBC upon card renewal which is waived off if you spend Rs.1 lakh and above annually on your card.

    Before you make a choice, don't forget to compare, research, analyse and then decide on the best credit card for you.

    Credit Cards With Low Interest Rates FAQs

    1. Can I save more if I have a credit card with a lower interest rate?

      Yes, credit cards with a lower interest rate can help you save on total interest rates which is charged on the monthly basis.

    2. How can I apply for a low interest rate credit card?

      To apply for a lower interest rate credit card, it is advised that you maintain a good credit score and maintain a healthy credit report.

    3. Do low interest rate credit cards have higher annual fee or joining fee?

      No, banks offer credit cards with lower interest rates depending on the various factors such as a good credit score, credit history, etc.

    4. Does ICICI Bank have any low interest credit card?

      Yes, ICICI Bank has the ICICI Platinum Chip Credit Card.

    5. What is the interest rate of the HDFC Regalia Credit Card?

      At a low regular interest rate of 3.6% p.m. and a 2.5% cash advance fee, this luxury card makes an attractive deal. The HDFC Regalia Credit Card requires cardholders to pay a joining fee of Rs.2,500 and a renewal fee of the equivalent amount. Additionally, it grants a welcome benefit of 2,500 Reward Points.

    6. Does HDFC Infinia Credit Card have a low interest rate?

      The HDFC Infinia Credit Card has a regular interest rate and cash advance fee as low as 2.5%.

    7. Does Citi Bank have any low interest credit cards?

      Yes, Citi Bank has Citibank Rewards Credit Card

      

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