Which bank offer the lowest interest for credit card?

Whipping out your credit card for making purchases has almost become the norm for today. While a credit card is a quick, safe, convenient and simple way to pay for your purchases, you also need to be careful about how you use it as unpaid credit card bills can lead to a debt trap.  

Factors to consider when looking for a low-interest credit card

  • There are several banks that charge low interest on their credit card—however, be careful about their other fees and charges, like for instance, the joining fee and the renewal fee. If you consistently pay your bills in full and on time, on or before the due date, every month, then having a credit card might not prove to be much of a hassle for you.

  • On the other hand, for those who are not able to make their monthly payments in full, a low interest credit card is one option. Anybody considering a credit card must first look at the monthly interest rate of the credit card, as credit card interest rates are one of the highest in the market.

  • Also review your spending pattern and see what kind of card (entertainment/leisure, travel, shopping etc.) suits your needs the best.

  • While some cards may have a low interest rate, you might not qualify in terms of the eligibility criteria. So keep in mind all these factors when shopping around for a credit card.

Following are some banks that offer low interest credit cards (comparatively):

ICICI Bank:  For those new to credit cards, ICICI Bank offers the Instant Platinum Credit Card which has a comparatively nominal interest rate of 2.49% per month. Those who are new to credit can avail this credit card against a fixed deposit. Additionally, the bank charges no annual fee on this card. It is basically a score-builder product, which you can use to build a healthy credit history provided you pay your bills meticulously. It comes with a dedicated rewards program, offers discounts on entertainment and dining amongst other benefits. Building your score with this card will help you become loan eligible in the future.

State Bank of India: SBI offers the SBI Platinum Advantage credit card, which is a premium lifestyle card offering travel and shopping privilege. It comes with a nominal interest rate of up to 2.25% per month. It has an accelerated rewards program in place where you get the benefit of 5X Reward Points on all grocery, dining, departmental and international spends.

HDFC Bank: HDFC Bank offers a premium lifestyle card—the HDFC Infinia Credit Card which comes with an interest rate of just 1.99% per month. Amongst other numerous benefits, the card offers exclusive lifestyle privileges, dining privileges, premium travel privileges and has a dedicated rewards program.

A low interest credit card is generally recommended for someone who does not pay their bill in full and carries their credit card balance from month to month. It could possibly help save you a small amount of money on monthly payments, depending on the size of your outstanding.

Note: The cards mentioned in the article are merely indicative of the kinds of cards on offer. You will need to choose your card based on your specific requirements.