Best 0% and Low Interest Credit Cards of 2016

If you have credit card debt or plan to make a big purchase, a low interest credit card can be a lifesaver. Many offer more than a year of 0% APR to pay down your debts, or a low ongoing interest rate for a longer-term debt reduction strategy. These cards are the best in the business, from waived fees to rewards and more. Transfer your balance, and you’ll get some room to breathe — and a chance to get out of debt.

Best for balance transfers: Chase Slate

$0 annual fee. No balance-transfer fee for the first 60 days. 0% Intro APR on purchases and balance transfers, and then the ongoing APR of 13.24%-23.24% Variable. 3% foreign-transaction fee

Benefits of the Chase Slate®:

Drawbacks of the Chase Slate®:

• The Chase Slate®offers no rewards, so it’s not the best card for everyday purchases.
• You can’t transfer balances from one Chase card to another, so you’ll only be able to take advantage of Chase Slate®’s great balance transfer offer if you’re carrying debt on a card from another issuer.
• You can’t transfer balances of more than $15,000.
• The 3% foreign-transaction fee, while not uncommon, makes this card less than ideal for international travel.

Bottom line:

If you’ve got a significant credit card balance and want to get serious about paying it off, it’s pretty hard to beat the Chase Slate®. The introductory $0 balance transfer fee plus the long 0% APR period make this card a powerful weapon against debt.

$0* annual fee. Balance-transfer fee of 3% (minimum $5). Intro APR of 0% for 21 months on purchases and balance transfers, and then the ongoing APR of 13.24% — 23.24% Variable . No late fees or penalty APR. 3% foreign-transaction fee.

Benefits of the Citi Simplicity® Card — No Late Fees Ever:

• The introductory APR period is the best in the business. For debts that won’t be paid off in just a year, this card is great.
• The annual fee of $0* means you can put more money toward debt reduction.
• There are no late fees or penalty APRs, which makes this card more forgiving than many of its competitors. But keep in mind that your credit score may take a hit if you pay late.

Drawbacks of the Citi Simplicity® Card — No Late Fees Ever:

• You’ll pay 3% in balance-transfer fees, so take that into consideration when you’re calculating how much interest you’ll save.
• There are no rewards. Just because you’re in debt-reduction mode doesn’t mean you don’t want a few perks.
• There’s a 3% foreign-transaction fee, so take another card with you abroad.

Bottom line:

The long 0% APR period on the Citi Simplicity® Card — No Late Fees Ever means you’ll have more time to recoup the 3% balance-transfer fee in savings, so in some situations, this card may be just what you need. It won’t cost you much to keep the card in your wallet, since there’s a $0* annual fee and you won’t get slapped with a lot of fees or a penalty APR if you miss a payment.

Related story: What is 0% APR credit card?

Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening. $0 annual fee. Introductory APR: 0% Intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 14.24–23.24% Variable. 5% cash back on quarterly bonus categories on up to $1,500 in spending per quarter, and 1% back on everything else.

Benefits of the Chase Freedom®:

• The introductory APR isn’t too shabby if you need a breather from interest to pay down your debt faster.
• The 5% cash back on bonus categories is generous for a balance transfer card; earning 1% on all other purchases isn’t bad either.
• Few balance-transfer cards offer a sign-up bonus; this one does.
• The annual fee is $0.

Drawbacks of the Chase Freedom®:

• The rotating bonus categories can be hard to keep track of; a flat-rate rewards card is simpler.
• Foreign transactions will cost you 3%.

Bottom line:

If you have a manageable amount of credit card debt that can be paid off in 15 months or less, the Chase Freedom®is a solid option. You won’t have to give up earning credit card rewards while you’re paying down your debt — not even on new purchases. The Chase Freedom®should definitely be on your short list.

• High rewards rate
• No annual fee
• 0% if you qualify for 18 mos on transfers

Introductory APR of 0% for 18 months on balance transfers, and then the ongoing APR of 13.24% — 23.24% Variable . Earn 1% cash back on purchases, then an additional 1% back when you pay them off. $0 annual fee.

Benefits of the Citi®Double Cash Card:

• The introductory 0% APR period for balance transfers is among the longest available for rewards cards of any kind.
• The cash-back rate — 1% on purchases plus another 1% when you pay them off, with no limit — easily trumps the flat 1% offered by many other rewards cards.
• You can qualify for this card with good credit.

Drawbacks of the Citi®Double Cash Card:

• The card charges a balance transfer fee of 3% of the amount transferred or $5, whichever is higher.
• There’s a $25 minimum redemption for cash back. Some cards have no such minimum.

Bottom line:

Though it’s not often thought of as a 0% APR or balance-transfer card, the Citi®Double Cash Card gives you a long interest-free period to pay down your debt. And unlike some transfer cards, it gives you a great reason to keep using it even after the 0% period ends: a fantastic cash-back structure in which you get 1% when you make a purchase and another 1% when you pay it off. (You don’t earn these rewards on balance transfers, though.) What’s more, many of the best rewards cards require excellent credit to qualify; the Citi®Double Cash Card requires good credit.

Related story: How to pay a credit card with another one?

$0 annual fee. Introductory APR of 0% on purchases for 6 months and 0% on balance transfers for 18 months, and then the ongoing APR of 11.24% — 23.24% Variable. 5% cash back on rotating categories, up to $1,500 spent per quarter, and 1% back on all other spending. No penalty APR or foreign-transaction fees. 3% balance-transfer fee.

Benefits of the Discover it®- 18 Month Balance Transfer Offer:

Drawbacks of the Discover it®- 18 Month Balance Transfer Offer:

• The card comes with a 3% balance-transfer fee, which will take a bite out of your interest savings during the introductory period.
• The 0% APR period on purchases is relatively short, compared with that for transfers. Once that period is up, you’ll pay interest right away on everything you buy, unless you pay your balance in full.
• Discover isn’t as widely accepted as MasterCard and Visa, so this is probably not a good bet if you like to carry only one card.

Bottom line:

The Discover it®- 18 Month Balance Transfer Offer has generous rewards. And we like the looks of that lengthy 0% APR period for transfers. But this card requires cardholders to pay attention to the end of the promotional 0% APR period on purchases, as well as the rotating bonus categories. If you don’t mind keeping close tabs on your credit card and spending, this card is a great deal.

The annual fee is $0. The ongoing APR is 6.25% Variable . Available to anyone who lives in lower Michigan or who makes a $5 one-time donation to the ALS Foundation.

Benefits of the Lake Michigan Credit Union Prime Platinum Visa:

• For debts that will stretch beyond even the most generous introductory 0% APR, the Lake Michigan Credit Union Prime Platinum Visa’s ongoing low interest rate is an attractive one.
• The annual fee is $0.

Drawbacks of the Lake Michigan Credit Union Prime Platinum Visa:

• There is no 0% APR period, which means you’ll pay interest on balance transfers and new purchases from day one.
• The card offers no rewards and requires excellent credit.
• You must be a member of the Lake Michigan Credit Union to get the card. Even though membership requirements are very flexible, even for people outside Michigan, that’s an extra hoop to jump through before you can apply for the card.

Bottom line:

The Lake Michigan Credit Union Prime Platinum Visa has an unusually low interest rate, so it’s a real contender if you expect to carry a credit card balance for the foreseeable future and you want to save on interest. You may be able to find a similar deal at a credit union in your area, but this rate is low even by credit union standards. If you expect to pay your balance off in 21 months or less, consider getting a card with a 0% introductory APR.

Voted by Nerdwallet.com

Originally published at yoursmartcredit.com on May 27, 2016.