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  • 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
      "Need to improve customer service & enhance the limit "
      0.5 2.0/5 "Expected more"
      SBI customer service is not providing good response whenever I contact them. The rate of interest is high. They have deducted 100 rupees for cheque transaction purpose. The limit is low of 63K. I am holding this card for 8 years. I am not getting any calls or message for an update. It is a life time free card. It is a Visa card. My payments are done on time so no idea about EMI facility. But there is no much benefits when I compared with usage.
      Was this review helpful? 13
      , chennai
      Reviewed on Mar 21, 2020
    • HDFC Bank
      HDFC Bank Credit Card
      "Good service"
      0.5 3.0/5 "Satisfactory"
      Being with HDFC bank for credit card is very nice, I have been using the card form 2 years i got a life time free card.Used the card for purchases,shopping, on line payment and mobile banking is function well but the interest rate is up to 22% which is very high so i wish the bank ca improve on that.
      Was this review helpful? 5
      , new delhi
      Reviewed on Mar 20, 2020
    • ICICI Bank Credit Card
      "Good service"
      0.5 3.0/5 "Satisfactory"
      Since I am having my saving account in ICICI bank and the bank so i decides to apply for a credit card also but i am not satisfied since the credit limit is only 50,000 as I am expecting to get more than the limit, the rate of interest is 13%. However it was fine because it is a life time free card.
      Was this review helpful? 1
      , new delhi
      Reviewed on Mar 20, 2020
    • HDFC Bank Credit Card
      "Best service"
      0.5 5.0/5 "Blown Away!"
      The best part about HDFC credit card is that the credit limit used to increase at a very fast rate, the offer is also good.The agent came and collect the documents and i got my card in very short time. I used this card for shopping,on line payment,fuel surcharge and groceries but I am not using this card for money transfer purposes.
      Was this review helpful? 2
      , patiala
      Reviewed on Mar 20, 2020
    • IndusInd Bank Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      INDUSIND bank agent suggest me to take the credit card, the interest rate was good and credit limit is based on EMI. Its a lifetime free card. The mobile baking function very well it was smooth and simple,but i don't have knowledge much about the reward points and offers.The overall experience was nice.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 20, 2020
    • ICICI Bank Credit Card
      "Good card "
      0.5 4.0/5 "Great!"
      I have applied ICICI Bank Amazon credit card for the past 7 months and I am getting 2,500 cash back and they given 5% on amazon shop and also 2,800 cash back till now all discount I have utilized . I am not sure with the rate of interest because i am paying on time bill.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 20, 2020
    • HDFC Bank Credit Card
      "Interst rate was high"
      0.5 5.0/5 "Blown Away!"
      I have been using HDFC Bank Millennia credit card more than 7- 8 years. I am getting 2 international and 8 domestic airport lounge access and i have utilized that recently. Credit limit is Rs. 2.26L apart from this i am using this card for utility bill payment scheduled bill and for groceries. Initially i have titanium card after regalia this card has been upgraded recently.I feel the rate of interest was so high.
      Was this review helpful? 3
      , chennai
      Reviewed on Mar 20, 2020
    • SBI Cards Credit Card
      "Average service "
      0.5 3.0/5 "Satisfactory"
      This is a new card i am not sure with the interest rate for SBI credit card. Credit limit is not sufficient they need to increase my limit. Actually it has a annual charges, if i spend Rs. 1L this year and the fee will get waived off and the fee is Rs. 499. Totally i used this card for Rs.9k and i received the statement also through mail. Mostly buying thing and fuel purpose i am using, actually i got reward points i am not sure about that.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 20, 2020
    • RBL Bank Credit Card
      "Improve in all service "
      0.5 4.0/5 "Great!"
      I am using this credit card more from RBL Bank than 1 year and i applied this card directly through bank. This is a free card they given a sufficient credit limit of Rs. 79k that's fine. Rate of interest is too much high and I am planning to close this card. For doing shopping in Flipkart and Amazon i am using this card, need to improve in bank service.
      Was this review helpful? 5
      , bangalore
      Reviewed on Mar 20, 2020
    • SBI Cards Credit Card
      "Un satisfied"
      0.5 2.0/5 "Expected more"
      I have taken SBI credit card because the bank agent suggest me to take the card. The card has an annual fee of 690 rupees. Interest rate is high and the credit limit is only 29,000 which I am not satisfied. My suggestion for the bank is to increase the card limit up to 2-3L and also to give fast response to the customer.
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 20, 2020
    • SBI Cards Credit Card
      "satisfied card"
      0.5 4.0/5 "Great!"
      I have my saving account in SBI and the agent has suggest me to take the card hence the process was fast,agent came and collect the documents from my residential area.There was some offers and I got reward points but I have not redeem it and the credit limit of the card was fine because i did not expect to get more than 75K. An interest rate is normal and I used the card for petrol bunk.
      Was this review helpful? 0
      , vadodara
      Reviewed on Mar 19, 2020
    • IndusInd Bank Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      The interest rate of Indusind bank is high, the card limit that I got is 150000 rupees. I have used this card for more than 1.5years. The customer service is good and I used to get a reward points on show room purchases. The bank always send and sms regarding offers so i am satisfied with the card.
      Was this review helpful? 0
      , kochi
      Reviewed on Mar 19, 2020
    • HDFC Bank Credit Card
      "Good card with limit "
      0.5 5.0/5 "Blown Away!"
      I am using HDFC Regalia card been 3 years it has applied directly from bank. At initial the credit limit is 75K now they have enhanced up to 1.75L, it was done only once on last January. The cash limit is sufficient. I got a life time free card. EMI conversion is good, rate of interest can be little bit lesser. Every thing is pretty and easy to convert. I use for online purchase and online course purposes.
      Was this review helpful? 3
      , bangalore
      Reviewed on Mar 19, 2020
    • Standard Chartered Bank Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      If I spend any charge for Standard Chartered credit card of Rs. 150 and i will be getting 3-4 points. This bank does not have next level card, if any one interest to go next level card that is not applicable. Rate of interest was okay processing for loan and all flat 2% they are charging.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 19, 2020
    • SBI Cards Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have not faced any issues when applied for SBI credit card through online. and there is facility of balance transfer it is good and low interest rate ,easy payment it s best on this card cash back offers are very good as well.I have got the credit card on time .I am using this credit for the past 15 days .I am satisfied with the service so far.
      Was this review helpful? 1
      , bangalore
      Reviewed on Mar 19, 2020
    • ICICI Bank Credit Card
      "Excellent card"
      0.5 4.0/5 "Great!"
      I am using ICICI Bank coral credit card, maximum i am using for groceries , shopping all purpose. I applied this card through other channel and EMI facilities are available. The rate of interest was okay and its a good card process. Annual charges is applicable and I am getting 1+1 movie offer.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 19, 2020
    • HDFC Bank Credit Card
      "Need to decrease the rate of interest"
      0.5 3.0/5 "Satisfactory"
      I have applied HDFC Bank credit card from other channel,. Annual charges is applicable and the limit was okay. This is my first card, recently it got upgraded into regalia and the rate of interest was very high 18%. I am getting airport lounge access i used for domestic purposes.
      Was this review helpful? 0
      , chennai
      Reviewed on Mar 19, 2020
    • Axis Bank Credit Card
      "Need to decrease the rate of interest"
      0.5 4.0/5 "Great!"
      From Axis Bank, the rate of interest and fee was high, if loan or emi conversion i am doing interest was high, need to decrease. This is a privilege card i am using since 18 months , and they given a sufficient credit limit. This bank has a good customer service.
      Was this review helpful? 1
      , chennai
      Reviewed on Mar 19, 2020
    • Citibank Credit Card
      "Good service "
      0.5 5.0/5 "Blown Away!"
      The rate of interest was very high in CITI Bank, need to decrease the interest rate. They given a sufficient credit limit and there are some annual charges and i think 500 wavier is there. I am getting cash back for all purchase and it was very simple process.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 19, 2020
    • Citibank Credit Card
      "Need to increase limit & decrease the interest rate "
      0.5 3.0/5 "Satisfactory"
      I have applied CITI Bank credit card which was applied through online and I am using this card more than 2 months. Card statement I am getting through Email and they given a low credit limit i informed to increase the limit. I use to travel a lot so i am using for fuel purpose vehicle and diesel. Annual fees is 4999 may be wavier if i use this card 40k in a year, no need to pay the annual charges and the interest rate was high.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 19, 2020
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