Over the past year, many Americans have seen their credit card interest rates tick upward as card issuers raised interest rates in advance of the implementation of the new Credit CARD Act. Some consumers report that their credit card APRs have jumped by as much as 10 percent; even consumers with a perfect payment history have not been spared.

Few things are as frustrating—and expensive—as being saddled with high-interest credit card debt. If this is a problem for you, take heart. There is much you can do to lower your interest rate, either by calling your card issuer to negotiate a lower rate and/or looking into transferring balances elsewhere. In either case, here are the steps to take to ensure the greatest success.

Step #1: Check Your Credit Score
When it comes to finding the key to the Credit Card Kingdom, your credit score is it. Card issuers stand by to roll out the red carpet for anyone with a great credit score. Consumers with low credit scores, however, will knock on the door in vain.

While all consumers are entitled to a free copy of their credit report once a year, getting a copy of FICO scores online typically cost around $7.95. However, for a quick check, use a free FICO score estimator, which in most cases will be sufficient.

Anyone with a FICO score above 750 will typically be able to get the best rates on their existing card or a new credit card. Even with a score above 680, chances of lowering rates are good, particularly if your payment history is excellent (see below).

People with credit scores lower than 680 might want to take steps to improve their credit score before attempting to lower credit card interest rates. Increasing credit scores can be done surprisingly quickly, as long as there are no major blemishes in your credit history. According to a study by the credit rating bureau Experian, 30 percent of U.S. consumers seeking to improve their credit score saw a 50-point increase in as little as six months.

Step #2: Check Your Payment History
The first thing card issuers look at when cardholders request a lower credit card APR is the person’s payment history. In order of severity (from low to high), here are some of the things to avoid to create a perfect payment history in card issuers’ eyes.
• Timing of payments. Avoid paying credit card bills at the last minute.
• Amount of payment. Don’t pay just the minimum due. If this has been your typical payment pattern, pay as much as you can on the account for 3-6 months before calling the issuer to negotiate a lower rate. For best results, pay down the balance each month to less than 30 percent of the credit limit on the card.
• Late payments. If you have one late payment within the last few months, call your card issuer and explain why it happened, and make sure they put a note in the account record. (Of course, this only works if it was a simple oversight; if the problem was that you didn’t have the money, don’t call, as you don’t want this on the account record!)
If you have more than one late payment, pay the account on time for at least six months, before attempting to call the card issuer to negotiate a lower rate.
• Missed payments. Missed payments will not only ruin the chances of negotiating a lower rate, they also torpedo one’s credit score. If you have a missed payment in your recent payment history, call your card issuer and ask which steps you can take to make the payment and get the mark removed from your credit report.

Step #3. Call to Negotiate a Lower Interest Rate
Once steps 1 and 2 are completed, it’s time to call your credit card issuer to negotiate a lower interest rate. Explain that you’re looking into ways to lower the interest on your credit card, and are considering transferring the balance to a low interest credit card. However, you’d prefer not to change card issuer, and want to see what lower rate they might be able to offer.

It’s expensive for card issuers to acquire a new customer, and they will often go to great length to keep cardholders that are good customers. According to surveys, more than half of consumers who call their credit card issuer to request a lower APR got their interest rates decreased, on average by one third. For best results, here are some more tips for how to negotiate a lower credit card interest rate with credit card companies.

If you still don’t get the rate you want, look into applying for a low interest credit card or credit union credit card, which typically feature lower interest rates; then transfer the balance to your new card(s). The preparation you did in steps 1 and 2 will help enhance the chances of success in this as well.

When applying for a credit card, one of the first things to consider is whether you will be carrying a balance on the card. While rewards credit cards or cash back credit cards may look like they offer the best credit card deals, these cards generally come with higher interest rates, which tend to more than outweigh rewards earnings for people who carry a credit card balance. For this reason, consumers looking to apply for a credit card they can use to pay purchases or expenditures off over time are better served by a low interest credit card.

Here are our picks for the best low interest credit cards currently available to consumers. Please note that with the exception of the IberiaBank credit card discussed below, low interest credit cards generally require excellent credit; consumers with average or poor credit unfortunately often are stuck having to pay higher interest rates. Also please note that all new credit card applicants initially will start out with a fairly low credit limit for all these cards, but the credit line will increase over time with regular payments.

Simmons First Visa Platinum. The Simmons First Visa Platinum card offers one of the lowest ongoing credit card interest rates in the nation, with a variable APR of 7.25 percent. There is no annual fee, and like all Visa cards, the Simmons card is accepted globally. Additional benefits include travel insurance, emergency cash and credit card replacement, plus a car rental loss/damage waiver covering collision, theft and vandalism. Simmons credit cards score high in any credit card comparison, and the bank has received national recognition for consistently offering credit cards with some of the lowest interest rates in the United States.

PenFed Promise VISA Card. Like most credit cards issued by credit unions, the PenFed Promise Visa Card clearly puts consumer interests in the driver’s seat. The card sports a low-interest 9.99 APR variable rate, one of the lowest available. In addition, cardholders can take out a fee-free balance transfer with a 7.49 percent variable APR for 36 months, essentially giving new cardholders a 3-year, low-interest loan.

Further, the credit card terms of the PenFed card read like they were taken straight out of a consumer wish list for the ideal credit card. The card carries no annual fees, no fees on cash advances, no late payment fees, no returned payment fee, no foreign transaction fees, and no penalty APR. Of course, cardholders who don’t abide by the terms, instead of penalty fees, might find their account closed or credit limit severely cut back.

Only members of the Pentagon Federal Credit Union and apply for PenFed credit cards. To qualify for membership, you have to be a government employee, member of the U.S. Military and Uniformed Services, employee or volunteer of the American Red Cross, or a family member/housemate of a current PenFed member. If none of these fit, join the National Military Family Association as a civilian member. The $20 annual membership qualifies you to join the Pentagon Federal Credit Union as well as for discounts on numerous other products and services.

IBERIABANK Visa® Classic Card. With tiered interest rates based on credit worthiness, the IberiaBank Visa Classic card is a rare example of a low interest credit union card, which even people who don’t have excellent credit may still be approved for. The card features a 3-tier interest rate targeting people in three different credit score ranges. Credit card applicants with excellent credit will qualify for a low variable APR of 7.25 percent, while those with average or not so great credit may find themselves paying a 10.25 percent or 13.25 percent variable APR. The card comes with a 1.99 percent intro APR for the first six months. In addition, unlike most other credit cards issued to people with less than perfect credit, the IberiaBank Visa carries no annual fees.

Those with excellent credit may prefer the IberiaBank Visa Select, which comes with both a 0 APR introductory rate on purchases for 12 months, and a 1.99 percent balance transfer rate of 1.99% for the first 12 billing cycles.

To qualify for IberiaBank credit cards, applicants must have been employed with their current employer for at last six months, and have a credit history free of delinquencies, bankruptcy, or collections. Credit card applicants will also be required to provide proof of income.

But financing the American Dream by simply charging it comes at a cost. Americans today owe almost a trillion dollars on their credit cards. According to the credit rating bureau Experian, U.S. households on average owe about $8,000 on their credit cards.

Credit card debt increased by more than 50 percent just in the first seven years of the new century, and almost tripled in the last fifteen years. Compare that to the 1930s, when debt was an unknown for most middle and working class families.

More than half of us don’t pay off our credit card balance in full each month. And while the average credit card interest hovers around 14%, that number hides the sobering fact that typical credit card APRs range from 6.99% to 19.99% and the people with the worst credit (and highest credit card debt) generally pay the higher rates.

How to Save 90% with Low Interest Credit Cards

Carrying credit card debt with high interest rates may not seem like a big deal when you pay your credit card bill each month. After all, if you just pay the minimum balance, payments generally are low enough to not put much strain on your finances, compared to the size of the debt carried.

However, take a moment to see what you’re really paying, and you’ll find that the numbers tell a very different tale. Let’s say that you owe $10,000 on your credit cards at 19.99% interest, and you pay the balance off at the minimum of 2% of the balance per month.

At that rate, it will take you more than 83 years to pay off your high interest credit card loan. In that time, you will pay $48,089.38 in interest, almost five times as much as you originally charged. In other words, you’re no longer living the American dream you’re shackled to a heap of debt.

Instead, take a look at the cost of low interest credit cards. On a low interest credit card with a rate of, say 8.99%, it would take 25 years to pay off a $10,000 balance, and you’d pay about $5,000 in interest. That’s almost 90% less interest than you’d pay with the 19.99% interest rate!

Quick Tip: Think that 25 years is still too long to be paying off debt? Keeping your balances on low interest credit cards isn’t the only way to save. How much you pay on your credit cards each month makes a big difference as well.

If instead of paying the minimum payment of 2% per month, you pay 4% of the balance owed each month, you can cut the pay-off time and interest paid by more than half. At that rate, it will take you about 11 ½ years to pay off the balance, and you’ll only pay $2,277.97 in interest.

To see how much you’d save with low interest credit cards, use this convenient calculator from Bankrate.com.

As the name implies, low APR credit cards come with a low annual percentage rate as its main advantage over the long run. Balance transfer credit cards may lure you in with promises of 0% APR, however at the end of the promotional period, that interest typically reverts to a much higher interest rate, as high as 19.99% per year. Many rewards credit cards and cash back credit cards also come with a higher than average interest rate.

Low APR credit cards can save a considerable amount of money over time, and should be the card of choice for people who need to carry a balance on their card from month to month. Low interest credit cards can also be useful instruments for consolidating higher interest loans onto one card with a lower interest rate.

To see the savings power of a low APR credit card, take this example. Let’s say you carry a $5,000 balance on your credit card, which you pay off with the minimum monthly payment every month. For a credit card with a 19.99% APR, it would take you 30 years and 9 months to pay off the balance. In that time you’d have paid $9,464.79 in interest, almost twice as much as the original amount.

In contrast, for a low interest credit card with a 7.9% APR, at the minimum monthly payment it would take 15 years and 4 months and only $1,739.56 in interest to pay off the card. (The moral in both cases? Never pay just the minimum balance on your cards!)

Unfortunately, getting approved for a low APR credit card is not as easy as for a 0% APR balance transfer offer. Many credit card offers promise an APR as low as e.g., 7.99%. However, this is a teaser rate; and unless you have excellent credit, the actual APR you will be approved for will be higher.

The best low APR credit cards include Pulaski Bank Credit Cards and Simmons First Visa Platinum. The Pulaski Bank card offers 0% APR for the first six months and no-fee balance transfers, offers that are increasingly hard to come by.

The Pulaski Bank Credit Card also comes with some of the most forgiving default terms in the industry. If you are late with a minimum payment or if a minimum payment from a preceding billing period remains unpaid, the card will default to a penalty APR of 22%. However, unlike other credit cards, the default rate only stays in effect until the account is brought to a current status, after which it reverts to the low APR.

The Pulaski card does come with a $35 annual fee, but if you carry a balance over an extended period of time, the savings from the lower APR will easily pay for the fee, and then some.

Simmons First Visa Platinum also offers a very competitive APR and it does not come with an annual fee. It charges a higher APR on cash advances and convenience checks along with a 3% cash advance fee. The Simmons First Visa Platinum has a fairly low default APR, which will be triggered if two payments are received late within a six-month period. The penalty APR reverts to the standard APR if the next six consecutive payments are received on time.

Like all forms of credit, you have to earn good terms. You have to have a very good or excellent credit score to get approved for the best low APR credit cards. And with the lowest APR credit cards, you may start out with a low credit limit. However, you can request a credit limit increase once a year and build your credit line over time. For the convenience of inexpensive credit, it can be worth the wait.

How do you know if a low interest credit card is for you? Here are three situations where low interest credit cards are the best option.

1. Choose a Low Interest Credit Card If You Carry a Balance on Your Card from Month to Month

A basic rule of thumb when using credit cards is to pay off the balance in full every month to avoid accumulating expensive interest charges. But let’s face it, there are times when that isn’t possible.

If you have to carry a balance from month to month, a low interest card with an ongoing low APR can save quite a bit of money. For example, a standard credit card with a 19.99% APR will cost $199 in interest per year for every $1,000 you have outstanding on the card. Compare that to $74.90 a year for a low interest credit card with a 7.49% APR. That’s a $125 savings a year for every $1,000 owed!

2. Choose a Low Interest Credit Card for Large Planned Purchases

If you’re planning a large purchase, putting it on a low interest credit card can help you buy it earlier, rather than having to save the money first.

If you use low interest credit card offers wisely, you can often come out ahead. For example, if you use a 7.49% low interest card to buy an item at 25% off, you can pay it off over three years and still break even.

A word of caution: Avoid using low APR credit cards for impulse purchases, as that is a formula for getting deeper and deeper into debt.

3. Choose a Low Interest Credit Card to Consolidate Multiple Card Balances.

Consolidating several high interest credit card balances onto one low interest credit card isn’t just convenient, it translates into significant savings. This occurs because the best low interest credit cards come with an introductory 0% APR on balance transfers, often up to twelve months. When the 0% balance transfer offer expires, you still pay only the low APR that comes with the card.

One final note: To qualify for the best low interest credit card offers, you need to have excellent credit. Credit card issuers always advertise the best rates available, so people with good and fair credit may find that the terms offered after they apply for a low interest credit card are somewhat higher than those advertised. Still, it’s worth applying. Even if you don’t get the lowest rate available, any lower interest card represents a saving.

Generally speaking, you will find the lowest interest rate offers on credit cards that are designed for those with good credit or who can claim a student status. But whatever your situation, if you are paying more than a reasonable amount of interest, finding a lower interest card is a great way to save. It may be possible to negotiate a lower APR with your creditor. But if a credit card company will not offer you a lower rate, consider applying for a new card with a lower interest rate.

Low interest rate offers may apply to an introductory balance transfer rate, an intro purchase rate, or both. Most introductory rates range anywhere from 0 percent to 3.99 percent annually. After the introductory period, many cardholders enjoy APRs below 12 percent.

Check the terms and conditions of a credit card carefully. With a fixed APR, your rate won’t change (and if the credit card company wishes to change your rate, they must notify you first). With a variable APR, your rate may change periodically. This rate is usually closely linked to the national prime rate; when it changes, yours may too. If you plan on carrying a balance, a fixed rate is often the best way to go.

Today, there are plenty of great low interest credit card offers to choose from. We have collected many of the best credit card offers here on this site – enjoy browsing. Now is the perfect time to take advantage of a low interest credit card offer.