Q&A: What do you consider low-interest rates on a credit card?

Question by theitgirl: What do you consider low-interest rates on a credit card?
I’m a college student and I’ve never had a credit card of my own and I would like to get one not to go crazy with it or anything, but to start building my credit. I don’t want to get the first credit card they offer me but I want to get one that has the lowest interest rates. What are considered low/high interest rates? Student credit cards? Any tips or a website that can tell me to easily avoid debt although I plan to have it only as an emergency card?
Best answer:
Answer by Leid Patson
Add your own answer in the comments!


  1. Rick B says:

    Well, you should only charge as much as you can pay IN FULL when the bill arrives, then you will not get charged ANY interest.

    DON’T get a credit card for emergencies. The last thing you need in an emergency is to charge something and end up paying a fortune in interest on the item. You need to save up a “baby emergency” fund of $ 1,000. Better yet, save up a real emergency fund of 3 to 6 month’s expenses.

  2. Ryan M says:

    Being a student, you WILL NOT get low rates….period. In fact, you will get some of the highest rates allowed by law since you do not have established credit. Low rates are generally anything under 10% and high is anything over 20%. For your first card, consider anything under 25% a huge victory.

  3. bdancer222 says:

    If you have no credit history, you are not going to qualify for low interest cards. You may not be able to qualify for any unsecured credit card. You may have to start with a secured card — you pay a deposit which is held as collateral against the line of credit.

    Go to your bank and apply. Look for a card without an annual fee. Don’t worry about the interest. Use the card for regular purchases, wait for the statement, and pay the balance in full every month. That way you will build credit history and avoid interest. The interest rate won’t make any difference if you never carry balances.

  4. Sunny says:

    About 10% but if you don’t carry debt on it, it really doesn’t matter much. The best way to build credit is to use it regularly but to pay it off every month. Look for a card that gives you cash back and doesn’t have an annual fee if possible. Student cards usually mean your parents are cosigners but you get a credit rating out of it. Usually a good deal.

    JourneySM Student Rewards with Capital One looks pretty good. Higher interest but no fee.

  5. Phyl Mar says:

    If you want to establish good credit I suggest you forget about what the interest rate is and pay off your bill every month. I have excellent credit because that’s what I do.

  6. Wreck says:

    How to build credit and get top scores at the same time (with time):
    Use your credit card for small things you need like food or gas.
    Pay in full each month.
    52% of Americans use cards this way.
    They carry the top scores.
    Carrying balances is an easy way to destroy credit.

    You don’t want a low interest card. Why?
    This will only tempt you to carry balances.
    When you pay in full each month, you never pay interest.
    So let that interest (APR) be 99.9%. You’ll never pay it.

    You only plan it to use in emergencies?
    You need to set up an emergency savings account for this. Not a credit card.
    Again, you need to use your card to develop credit.
    If you don’t use it, the credit reports will show $ 0 balance – no benefit.
    Use it for very small things, and pay in full, and get scores that will amaze any future creditor

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