Credit Cards with Low Interest Rates

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.

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.

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 LIVE+ Credit Card

With attractive features such as Zero lost credit card liability benefit, the HSBC Live+ 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.

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:

1. 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.
2. 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.
3. 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.
4. 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:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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 Cards?

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.