How to lower your credit card interest rate
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BLUEPRINT
Updated 1:10 p.m. UTC Jan. 11, 2024
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With the average credit card interest rate hovering near or above 20%, carrying a large credit card balance can get expensive. Plus, it makes it that much more difficult to pay off as interest charges are applied to any unpaid balance every month.
The good news is that you have options to get ahead of your credit card debt. You can reduce or eliminate interest charges by asking your card issuer for an interest rate reduction, move your high-interest credit card balance to a balance transfer card offering a 0% intro APR period or apply for a card offering a 0% intro APR promotion on purchases.
How to avoid paying credit card interest charges
First and foremost, know that you can avoid credit card interest charges completely by paying off the entire balance on your billing statement every month. Most credit card issuers grant a grace period to pay off what you charge to the card every month by the due date. That grace period is the time period between the end of your billing cycle and when your payment is due. By law, the grace period must be at least 21 days.
When you get your credit card bill and pay the total amount due, you won’t get charged interest unless:
- You carried over a balance from the previous month.
- You used the card for a cash advance (interest begins to accrue immediately on cash advances).
- Your credit card does not have a grace period (this is rare, but card issuers are not required to offer a grace period).
- You make purchases on a balance transfer card before the transferred balance is paid off.
What a lower interest rate means
The higher the interest rate is on your credit card, the more expensive it is to borrow money if you don’t pay off what you charged to the card every month.
Here’s an example of how much interest you could be charged on a card with a $5,000 balance with a 20% interest rate vs. a card with a 10% interest rate if you took 12 months to pay it off, without adding any new charges to the card:
| INTEREST RATE | MONTHLY PAYMENT EACH MONTH FOR 12 MONTHS | TOTAL INTEREST PAID | |
|---|---|---|---|
Card A
| 20%
| $463
| $588
|
Card B
| 10%
| $439
| $274
|
The lower your interest rate, the less you’ll pay in interest charges.
How to get a card with a low interest rate
When looking for a new credit card with a reasonable ongoing interest rate (without an intro 0% APR offer), know that many credit union credit cards have competitive APRs compared to travel rewards or cash-back credit cards.
However, many credit card offers typically include a range of the APRs for new cardholders—from the lowest available APR to the highest available APR (for example, 13.40% to 18.00% variable, with “variable” meaning the APR may rise or fall depending on the Federal Funds Rate). When you hear that the Fed is raising interest rates, your variable interest rates on credit cards will also likely increase.
Once you apply for a credit card, the issuer will often review your creditworthiness to determine what your card’s APR will be. Unfortunately, you won’t know what that assigned APR will be until after you’re approved for the card. There’s no guarantee that you’ll be offered the lowest APR even if you have a perfect credit score. The odds of getting a lower APR are in your favor if your credit score is in good shape (meaning you pay your bills on time, keep your debt balances low and don’t have any active judgments, such as bankruptcy or accounts in collection).
Ways to lower your current credit card interest rate
If you’d like to lower your existing credit card’s interest rate, you have the option of calling your credit card issuer and asking for a lower APR.
The chances of your request being granted often relies on you being a good customer by having made on-time payments, keeping your balance below your credit card’s credit limit and perhaps how long you’ve been a customer.
You need to do a little homework before making the call. You should know exactly what your current interest rate is on the card, what interest rates are on similar cards, and what interest rate you are seeking based on competing card offers.
You may also make it known that you’re willing to take your business elsewhere if your request is not granted. Above all things, keep the tone of your request in a friendly but professional manner.
You can expect one of five things to happen when making the request:
- Your request is approved.
- The issuer may want to review your credit report before granting your request, resulting in a hard inquiry on your credit report.
- The issuer may temporarily lower your APR for a fixed period of time to help you save money while paying down your balance.
- The issuer may see if you qualify for any intro APR promotions associated with the card, such as an intro 0% intro APR for purchases or balance transfers for a specified period of time.
- Your request is denied. You’ll then have to decide whether to keep or cancel the card, or apply for a new card offering a 0% intro APR or low ongoing interest rate.
Finding a credit card with a low interest rate
If your request to lower your current card’s APR is denied or doesn’t meet your expectations, you are free to apply for a new credit card with as low an APR as possible.
There are dozens of cards offering introductory 0% intro APRs for purchases or balance transfers or both. However, those promotions do have an end date, after which the card’s ongoing interest rate will apply to any existing balance or new purchases.
If you’re a member of a credit union that offers a credit card, you can call or go online to see what those offers may be. Otherwise, you can check out our list of best 0% APR credit cards or some card recommendations below.
Best credit cards with low interest rates
Consumers looking for a low-interest credit card can either choose between a card that offers a low ongoing APR or one that offers a limited-time 0% intro APR promotion for purchases or balance transfers, or both.
The difference between the two is that with a card offering an intro APR, once the promotional period ends (typically anywhere from six months to 21 months), the card’s regular APR kicks in.
For example, the Wells Fargo Reflect® Card * The information for the Wells Fargo Reflect® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. offers a 0% intro APR for 21 months from account opening on purchases and on qualifying balance transfers made within the first 120 days, afterwards a 18.24%, 24.74%, or 29.99% variable APR applies. There’s a balance transfer fee of 5% with a $5 minimum. There is no annual fee.
The Navy Federal Credit Union Platinum Credit Card offers a 0.99% intro APR for the first 12 months from account opening on balances transferred within 60 days when applying from July 1, 2024 to Jan. 1, 2025. Then, a variable APR applies. The variable APR is 11.24% to 18.00% on both balance transfers and purchases . The Navy Federal Platinum Card also has no annual fee.
You’ll have to join the Navy Federal Credit Union in order to apply for the Platinum Card. Membership is available to active duty or retired service members of the armed forces (as well as veterans and family members), including the U.S. Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard or Space Force as well as U.S. Department of Defense civilians, officers and reservists.
Frequently asked questions (FAQs)
You can typically find your credit card’s interest rate on your card issuer’s app when you tap on the card billing or payment info, or by looking at a recent statement and scanning through to the last page, often under a heading called “interest rate calculation”.
Yes, you can attempt to negotiate a lower interest rate on your existing credit card by calling customer service (the phone number should be listed on the back of your credit card). The issuer may or may not grant your request, or you may be offered a temporary lower APR or a balance transfer offer with a lower APR.
Yes, you can avoid paying any interest on a credit card by paying the entire balance due on the account by the statement due date every month. However, there are some caveats: If you didn’t pay the entire balance in the previous month, you may be charged “residual interest” on that portion of the balance that wasn’t paid off. So, it may take two billing cycles to clear you of any interest charges.
Another way to avoid interest is to take advantage of an introductory APR offer for either purchases or balance transfers (or a card that offers both) for a specified period of time. Any balance remaining after the promotional period expires will be subject to your card’s ongoing APR.
*The information for the Wells Fargo Reflect® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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