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Many credit cards have high annual percentage rates (APRs) that cause interest to quickly stack up when you're carrying a balance. But if you shop around, you might be able to get a lower-rate card that will save you money. A card with an introductory APR offer could also be an even better option in certain situations.
Here are seven steps you can take to potentially get a lower-interest credit card.
1. Check Your Credit Score
Credit card issuers will often check your credit report and score when reviewing your application. A higher credit score can help you qualify for more cards and help you get a lower interest rate if you're approved.
If you don't know where your credit score is at, you can check your FICO® Score☉ for free from Experian. Your Experian account can also tell you what factors are helping and hurting your score the most, and you can track how your score changes over time.
2. Improve Your Credit
Unless you already have a good to excellent credit score, you could also try to improve your credit before applying for a credit card. It can often take months to see substantial changes, but there are a few things that might lead to quicker results:
- Pay down credit card balances. Paying down your credit cards can lower your credit utilization ratio and help your credit scores. If possible, pay down your balances to be under 10% of their credit limits. You could have a high utilization rate even if you pay your credit card bill in full each month (due to when your card issuer reports the balance to the credit bureaus), but making early payments or several payments a month might help.
- Review your credit report. Negative account information that's been incorrectly reported by a creditor and added to your credit report might be hurting your score. But you have the right to look over your credit report and dispute any inaccuracies you see.
- Pay off collection accounts. Some credit scores won't consider collection accounts once you pay off the debt. Settling the collection account could also have a positive, but not quite as positive, impact on your scores.
Even with these relatively quick options, it still might take at least a month to see an increase in your credit scores.
Learn more >> How Long Does It Take to Build Credit?
3. Ask for a Lower Rate
Credit card issuers often won't lower your account's interest rate just because you ask, but it doesn't hurt to try. Some issuers might honor your request, especially if you've had the card for a while and pay your monthly bill on time.
If you're looking for a lower rate because of a specific event, such as a lost job or medical emergency, you can also ask the card issuer if it has any hardship options. Sometimes, companies might be able to help you out with a temporary lower interest rate or minimum payment.
4. Look at Cards From Your Bank
If you've had an account with the same bank or credit union for years, you might want to look for a low-rate credit card from the company. Your existing financial institution will have a better understanding of your money situation than other card issuers. If you're a longtime customer and you've been consistently paying other bills on time and saving money, they might approve you for a card with more favorable terms.
5. Consider Cards From Small Issuers and Credit Unions
Community banks and credit unions sometimes offer credit cards with lower APRs than you'll find from large issuers.
Credit unions may be an especially good option because federal credit unions can only charge up to 18% APR on credit cards. In contrast, the Federal Reserve found that people who carried a balance had an average APR of 22.63% in February 2024.
Some cards have a fixed rate rather than a variable APR, and lower and fewer fees than cards from large issuers. Additionally, cards from small issuers may still offer rewards on purchases. But the rewards programs won't necessarily have as many benefits and redemption options as the large issuers' programs.
6. Compare Intro APR Offers
If you're looking for a low-rate card for a specific purchase or project, consider a card that has an introductory 0% APR offer. Even if the card has a high interest rate, your purchases won't accrue interest during the introductory period.
Generally, any remaining balance at the end of the promotional period starts to accrue interest at the standard APR.But read the fine print before applying. If the card has a deferred interest offer rather than an intro 0% APR offer, all the interest that accrued since the purchase date could be added to your balance if you don't pay off the balance during the promotional period.
7. Look Into a Debt Management Plan
When you've been struggling with credit card debt for a while, getting a new card with a lower rate might not be the solution. Consider reaching out to a nonprofit credit counseling organization for a free consultation and budget review. If it seems like a good fit, the counselor might suggest a debt management plan (DMP).
With a DMP, the counselor will negotiate with your credit card issuers and try to get you a lower interest rate, have your fees waived and bring past-due accounts current. They'll also take over your credit card payments: You pay the counselor a lump sum monthly and they pay your bills.
A DMP might save you money and help you get out of credit card debt within three to five years. However, you generally can't open or use credit cards while you're participating in a DMP.
Check Your Credit Card Offers
When you're looking for a new credit card, getting preapproved can help you determine if you'll likely get a card without a hard inquiry—which might hurt your credit score. Some card issuers may even show you an estimated APR with a prequalification.
Rather than going issuer by issuer, you can also create or log in to your Experian account. You can then compare credit card offers from Experian's partners based on your unique credit profile.
