By Aubrey Clark
With the prime rates as low as they are right now, low interest rate credit cards aren’t hard to find when shopping online. The trick though, is being able to separate the best credit cards from the best looking credit cards. Card issuers figured out a long time ago that they could sell more credit cards, with higher rates and fees, by simply attaching rewards programs to their cards. When shopping for low interest rate cards online, you will usually find these cards listed in the “regular cards” or “lowest rate” section of the website.

Comparing low interest rate credit cards are trickier than you think. There are three different classes of low interest rate cards, each having a different method of determining the rate.

low interest credit cards

The first class of credit cards will have an interest rate that is determined by the “rate plus the margin” formula. The “1%” will always be constant, but your interest rate will fluctuate with the national prime rate.

The card that you see offered with an interest rate of prime plus 1% could end up being prime plus 5% after the card is approved. A flat rate credit card offers one low rate without any details of how they arrived at the rate. The flat rate card is less fluid than the “prime plus” credit cards because they do not fluctuate monthly with the market.

The last class of low interest rate credit cards is the fixed rate cards. Just remember, as with the first two card classes, the card issuer can change the fixed rate anytime they please..

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