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5 best low APR credit cards of 2015

By , CardRatings contributor
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    Even though many zero-percent-APR introductory offers have been getting longer lately, a low-interest credit card can help you prepare for an emergency expense or for a moment when you might not qualify to surf your balance interest-free.  The best low APR credit card offers typically come with no annual fee and require excellent credit.

    PenFed Promise Visa® Card

    Although credit unions don't have to ramp up interest rates to please shareholders, very few of them have the reach to run their own credit card programs. Many credit union credit cards are just "white label" products operated by major banks through partnership agreements, offering the same features -- and similar interest rates to their better-known counterparts. As one of the largest and fastest growing credit unions in the United States, Pentagon Federal uses its size to break the pattern.

    PenFed Promise Visa® Card carries no annual fee, no foreign transaction fee, no late fee, no balance transfer fee, no penalty pricing, and its variable APR uses one of the market's lowest spreads against the Prime Rate. At the time of this writing, this card carried a variable purchase APR of just 7.99% to 16.99 based on your credit worthiness. In addition PenFed often runs balance-transfer deals on this card with no balance transfer fees. Currently there is a 4.99 percent APR promotional balance transfer rate for 12 Months on balance transfers made between July 15, 2015 through August 31, 2015 with no balance transfer fee. After that, the APR for the unpaid balance and any new balance transfers will vary with the market based on the Prime Rate, and is currently 7.99% to 16.99 based on your credit worthiness. This transaction is subject to credit approval. With a strong track record of paying your bills on time and staying below your total credit limit, you could qualify for a card that can really help knock down your remaining credit card balances.

    Barclaycard® Ring MasterCard®

    Meanwhile, an upstart division within one of the world's biggest credit card issuers keeps running an experiment to see what their operation might look like if they ran it more like a credit union. The Barclaycard® Ring MasterCard® runs on a set of community principles shared on a cardholders-only website. Members help decide everything from service fees to charitable donation recipients. As a result, Barclaycard Ring now features a low, variable APR for purchases and balance transfers, no balance transfer fee, a relatively low cash advance fee and no foreign transaction fee.

    When Barclaycard® Ring MasterCard® first launched, it seemed like a clever little test to help establish an independent brand name in the United States. After all, the Wilmington-based bank had offered private label retail and airline credit cards for years. However, as those licensing deals expire, the bank has started migrating more of its customers over to Ring. According to company bloggers "Jen" and "Jared," as many as 14,000 new cardmembers join Ring every month, suggesting that this low-interest credit card might stick around for a while.

    Iberiabank Visa Classic

    Credit cards don't all come from Delaware and South Dakota, though. Some of the market's cheapest credit cards originate in Louisiana at Iberiabank, a regional lender that started over 125 years ago as a building and loan office in Lafayette. Since then, Iberiabank has grown through a series of strategic mergers and by carefully vetting the customers to which it loans money.

    With a strong credit report and the willingness to submit up to six months of your company pay stubs for review, you could qualify for an Iberiabank Visa® Classic card with a variable purchase APR that currently sits at 12.99 percent, 17.99 percent or 22.99 percent, depending on creditworthiness. You won't get too many bells and whistles on this card that's ideal for emergencies.

    Simmons Bank Visa® Platinum

    Keeping interest rates extremely low often means giving up a few perks, like a customer service phone line that gets answered outside of business hours. (Don't worry, there's still a special, 24-hour hotline to report your card lost or stolen.) If you're willing to trade some urgency for personal attention to detail, the Simmons Bank Visa® Platinum also features an extraordinarily low variable standard purchase APR, currently 7.25 percent.

    It could just be how banks prefer to do business in the South, but Simmons Bank (like Iberiabank) often asks first-time applicants for proof of income and employment stability far beyond what's listed at the major credit bureaus.

    US Bank Visa® Platinum Credit Card

    Although Discover, Bank of America, Chase and Citi have been duking it out over the no-frills market with variable purchase APRs between 10 and 13 percent, US Bank managed to sneak onto the list with a Visa card that has a variable purchase APR as low as 9.99 percent (full range is currently 9.99-20.99 percent variable APR, based on creditworthiness when you open your account). While this card's 3 percent balance-transfer fee (or $5 minimum) trends close to its competitors, a 15-month zero-APR introductory period on purchases and balance transfers makes this a good choice for managing an unexpected, major purchase. After the introductory period, a variable APR, currently 9.99 - 20.99 percent applies based on your creditworthiness.

    This card also features FlexControl, a collection of online credit card calculators and other budgeting resources designed to help cardholders pay down balances faster. It's another sign of a trend among credit card companies that want to reduce risk in their lending portfolios by attracting consumers who want to get out of debt.

    These five cards may not come with lots of extras, but they will help insulate you against higher finance charges when the Prime Rate eventually rises.  If you are more interested in credit cards with perks, see this full list of the best credit cards available or our list of the best credit cards for high credit scores.

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