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

    In today’s world, having a credit card is a huge necessity. It helps an individual get his/her hands on essential items without needing to pay for it then and there itself. Though there are many benefits that come with having a credit card, one needs to consider the monthly interest rates. This is because 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.

    Sbi Advantage Gold & More Credit Card

    The Advantage Gold & More Credit Card from SBI comes with a joining fee of Rs.499, regular interest rate of 1.99% 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.

    Best Low Interest Credit Cards of 2018

    HDFC Infinia Credit Card

    The Infinia Card from HDFC is a credit card with a regular interest rate and cash advance fee as low as 1.99%. 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 Rewards Credit Card from Citibank offers a regular interest rate of 3.15% and a cash advance fee of 2%. It comes with attractive features such as up to 10X Rewards, every time you shop from some popular apparel and department stores.

    First Citizen Citibank Titanium Credit Card

    With zero joining fee as well as renewal fee, Citibank First Citizen Titanium card is available with a regular interest rate of 3% and a cash advance fee of 2%. Credit cardholders can avail reward points, vouchers and other first use benefits at some stores.

    ICICI Bank Instant Platinum Credit Card

    The ICICI Bank Instant Platinum Credit Card is available at a regular interest rate of 2.49% and a cash advance fee of 2.49%. There is no joining fee or renewal fee on this card. Cardholders can avail interest-free credit of up to 48 days on purchases made using the card.

    Kotak Velocity Platinum Credit Card

    The Velocity Platinum Credit Card can be availed at a low interest rate of 3.10% pm. Joining fee of Rs.499 is waived for the cardholders of this card. The renewal fee of this card is Rs.499, while the cash advance fee is 2.5%. Other attractive features include a 2.5% fuel surcharge discount in all petrol pumps in India.

    First Citizen Platinum Credit Card

    The First Citizen Platinum Credit Card from Citibank is available at a regular interest rate as low as 2.5% pm and a cash advance fee of 2%. With this card, you can earn up to 5% on your shopping expenses at Shoppers Stop. Both joining fee as well as renewal fee of this card stands at Rs.1500.

    Jet Airways Citibank Titanium Credit Card

    Citibank offers the Jet Airways Titanium Credit Card with 2.5% regular interest rate per month and 2% cash advance fee. The card comes with a facility to earn double JPMiles on Jet Airways tickets. On this card, you can earn 1000 JPMiles for every first time use of the card each year.

    SBI Advantage Platinum Credit Card

    The Advantage Platinum Credit Card from SBI can be availed at a low interest rate of 1.99% pm and a cash advance fee of 2.5% pm. Although both joining fee and renewal fee is quite high at Rs.2999, you can earn up to 5X Cash Points from your shopping at Departmental Stores, Dining or International spends.

    ICICI Bank Instant Gold Credit Card

    With a regular interest rate as low as 2.49% pm and cash advance fee at the same rate, the Instant Gold Credit Card from ICICI Bank 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 1.99% pm and a 2.5% pm cash advance fee. Additional feature includes a credit free period of 50 days.

    TATA Empower Credit Card

    With absolutely zero joining and renewal fee, the TATA Empower Credit Card comes with a low regular interest rate of 3.35% pm and 2.50% pm. Along with the affordable charges on the card, cardholders can avail up to 4% value back at Tata stores and its partner stores and products.

    HDFC Regalia Credit Card

    At a low regular interest rate of 1.99% pm and a 2.5% cash advance fee, this luxury card makes an attractive deal. Offered by HDFC, the 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 Platinum Credit Card

    The HSBC Platinum Credit Card comes at a regular interest rate of 3.10% and 2.5% cash advance fee, per month. Cardholders can also get 8000 Reward Points as a welcome gift. Apart from these charges, the card incurs a joining fee of Rs.6000 and a renewal fee of Rs.2000. The card’s Reward points can be redeemed for air mileage points.

    HSBC Gold Credit Card

    Cardholders of HSBC Gold Credit Card can enjoy a low monthly interest rate of 3.3% and a cash advance fee of 2.5%. HSBC does not require any joining fee for this card, however renewal fee of Rs.2000 is charged by the bank at the time of card renewal.

    HSBC Classic Credit Card

    With attractive features such as Zero lost credit card liability benefit, the Classic Credit Card from HSBC offers a regular interest rate of 3.5% pm and a cash advance fee of 2.5% pm. The card does not incur any joining fee but a renewal fee of Rs.700 is charged by HSBC upon card renewal.

    However, there are ways to lower the interest rate on your existing credit cards, they are:

    • Always pay your bills on time and if you maintain it for a decent enough time, you can request the bank to further lower your present interest rate.
    • By making your payments in full or excess, you could create a good record with company and avail a low interest rate.

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

      

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    Credit Card Reviews

    • SBI Cards Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am holding the credit card of SBI CARD they have offered with the satisfactory credit limit also the card has the good offers with this card which is satisfactory with this card. The payment reflects very quick with the card also there is a EMI option.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "USERFRIENDLY PORTAL TO USE"
      0.5 4.0/5 "Great!"
      Bankbazaar.com it is the first time experience as i am using it without any hassle process. I prefer using it through the mobile application as the application is user friendly also it is convenient to access. The customer support and responsiveness is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      SBI has benefit of balance transfer option which can be used for card payments and its converted into EMI for 3 or 6months. Earlier used platinum card which has 3K annual charge without knowing used 2 years requested for new card then given simply save credit card with Rs.500 annual fee but reversible. The helpline number get connects easily and proper response. The charges are normal 3.5%.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      There are no issues with the SBI CARDS where i am using it since from last few years. There are no charges applicable with this bank card for any of the hidden charges. The credit limit gives was satisfactory also the card is user friendly and convenient to access.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • HDFC Bank Credit Card
      "NOT SATISFIED"
      0.5 1.0/5 "Really Bad"
      The credit limit is lesser and expecting for hike with this card where i am using it with the HDFC BANK, there is a EmI option is available, the billing date is 5 and they are debit delay and there are hidden charges are there. Using from last 2 years this card.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "GOOD PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com as i have been using it through the website as the portal is convenient and it is user friendly to access. The customer service is good and they are responsive also they are good.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • Axis Bank Credit Card
      "Better card"
      0.5 3.0/5 "Satisfactory"
      I am using Axis Neo credit card and am satisfied with the credit limit of 1.20L. I have received the card in 2004 and am not using much. Its a life time free credit card. The customer service is good but they are not fulfilling customer requirement. The payment mode is online.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Citibank Credit Card
      "BETTER"
      0.5 3.0/5 "Satisfactory"
      The documentation process was simple and easy to get the card with the CITIBANK. The credit limit is lesser with this credit card, it is a payable card for yearly once. I am getting no offers with this card and i have started using it from last few months.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • HDFC Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got a limit of 1.75L on my HDFC credit card and its a life time free. The services are superb and its a No.1 bank. I get online discounts during festival season. Its easy to understand terms and conditions, contacted the customer service which is toll number. I get immediate response and have another number but the procedure was lengthy to connect with the executive. There is no hidden charges.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Citibank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using rewards card from Citi Bank for last 6 years. I get reward points for transactions, On spend of 100rupees=1point=0.25p where other bank conversion rate is high. The credit limit is low and annual charges waiver off is given.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "Better"
      0.5 4.0/5 "Great!"
      I have installed the mobile app of Bankbazaar.coma and am using the portal for long time to know some information which is easy to operate. I have applied the card for first time and the process is very much simple and convenient. Overall hassle free.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • American Express Credit Card
      "Need to increase the limit"
      0.5 4.0/5 "Great!"
      American Express is prompt in their card delivery, am using the card. The credit limit is low of 25K and need to increase the limit for higher level card. They are charging annual fee of 499 rupees. I got the first bill with annul fee+ GST and made it online.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken the credit card for a first time with Bank Bazaar and its good. The customer service has contacted me and got a regular follow ups. I have used the mobile application which was simple to access. Overall it was good and satisfactory.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • IndusInd Bank Credit Card
      "Average"
      0.5 4.5/5 "Excellent!"
      I have received the credit card on time from Indusind Bank Ltd and I don't find any delay on their service. The credit limit is good for me. The annual fee is not there but need to pay joining fee for one time which is 1000 rupees. I have used the card once and the bill is generated. The payment mode is easy. It does not have an offer of buy one plus one movie ticket on bookmyshow.com basically the benefits are lesser.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the SBI CARD which is a FBB card where i get the good offers with the FBB purchase also i get the good offers in this card. the credit limit is lesser also it is not satisfactory. The customer support is good and they are responsive, it is a good banking.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the credit card with the SBI CARDS where the card is payable card which is 800 rupees with this card. The application is easy and it is good to use the card also the website is also good with this bank. The payment option is good with this bank.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • HSBC Bank Credit Card
      "AVERAGE"
      0.5 2.5/5 "Just OK"
      The card is not user friendly and not in fuel offers with the HSBC BANK, unable to change the pin with the ATM, i am getting offers with the book my show which is buy 1 get 1. Application is not good and it is slow and there is no ATM is available with this bank.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • ICICI Bank Credit Card
      "Better "
      0.5 4.5/5 "Excellent!"
      I am using ICICI Credit card for last 3 years. I am happy with the credit limit and never gone for enhancement. They don't charge annual fee always. I got reward points and cash back offer for purchasing online. I get one movie ticket as free for every month. The customer care is very supportive. Once I tried EMI and the charges are little high.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "CONVENIENT PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com as i am using it through the mobile application as the application is easy and user friendly to access. The customer service is good and they are responsive with this channel by explaining the details of the card.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • YES Bank Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      It is with a life time free card so i have taken the card with the YES BANK. The documentation process was simple and easy to get the card with this bank. The credit limit is satisfactory and it is a free card. I am getting rewards points but not aware of the points.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
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