Can I Get a Low Interest Credit Card With Bad Credit

This generation has become very much dependent on credit cards or we can say that they are just habitual in using them. Not just due to the credit limits that the credit card offer, but also because of different types of rewards and benefits. But apart from the rewards, there are many more things that you need to check before getting a credit card, such as the annual fee, interest rate, and other charges. These charges may vary from card to card and everyone looks for a credit card with maximum benefits and minimal charges. You will see that most credit cards charge an interest rate of 3 to 3.5% per month, but individuals often look for cards with lower interest rates. There are low-interest credit cards in the market, but it is not that easy to get approved for these cards, especially when you have a bad credit history. In this article, we will help you understand whether you can get a low-interest card with bad credit or not. and if yes, how can you get that? Continue reading to understand it further:

What are Low-Interest Credit Cards?

As it can be understood by the name itself, low-interest credit cards are cards that change very low interest on the outstanding balance. Generally, credit cards in India change the interest of 3.5% per month on average. Therefore, credit cards that have an interest rate below 3% can be considered low-interest credit cards in India. All the card issuers offer a few premium and super premium credit cards that come with a low-interest rate. You can get cards with an interest rate as low as 1.5% per month, but it’s not really easy to get approved for such cards. As these cards are premium, they required a really good credit score for approval.

Is It Possible To Get a Low-Interest Credit Card With Bad Credit?

Generally, low-interest credit cards are premium cards that come with a high annual fee and require an excellent credit score for approval. So, it is not possible to get approved for these cards with bad credit. However, some of these premium cards are also issued as secured credit cards, i.e. you can get these cards against a fixed deposit. For example, the HDFC Regalia Credit Card charges a lower interest rate and is a premium travel & lifestyle credit card. So, even if you don’t have a very good credit history, you get it by opening an FD amount at the HDFC Bank. An important thing to keep in mind here is that the required FD amount for such premium cards can be higher than the basic secured credit cards.

If you are not willing to get a credit card against a fixed deposit, you can have some patience until you build a good credit profile. Once you achieve an excellent credit score (above 800), you can request your card issuer to reduce the interest rate on your credit card or upgrade your card to a premium credit card with a lower interest rate.

Best Examples of Low-Interest Credit Cards

There are so many low-interest credit cards available in the Indian market. Some of the best ones out of these cards are as follows:

IDFC First Bank Credit Cards

IDFC First Bank is among the top card issuers in the country and it offers a decent range of credit cards across different categories. IDFC Credit Cards don’t come with a fixed interest rate, but they can vary between 1.99% to 3.75% over a month on the basis of different factors. People having a good credit history get a credit card with a low-interest rate, however, someone having a bad or average credit score may get the same card variant with a high-interest rate. Some of the best low-interest cards by IDFC Bank are the IDFC First Wealth Credit Card, Select Credit Card, Classic Credit Card, and Millennia Credit Card.

HDFC Diners Club Black Credit card

The Diners Club Black Credit Card of HDFC Bank is the most premium offering by the bank, after the Infinia Credit Card. It comes with an annual fee of Rs. 10,000 and the interest rate on this card is 1.99% per month only. Apart from this, the card has a very good reward rate and a number of exciting privileges across other categories, including travel, dining, lifestyle, and many more.

Axis Bank Magnus Credit Card

The Axis Magnus Credit Card is also a premium credit card that offers you a very good reward rate and exciting travel privileges, including free domestic as well as international lounge access and many more. It comes with an annual fee of Rs. 10,000 and the interest rate on this card is 3% per month, which is not very low, but lower than the average rate of 3.5% p.m.

Click here to get a detailed list of low-interest credit cards.

Bottom Line

Low-interest Credit Cards are undoubtedly beneficial as these cards allow you to save on the interest rate, but you should be aware of the fact that you will never need to pay interest on a credit card if you make your credit card bill payments in full every month. Interest is charged only when you carry on a balance from one billing cycle to another billing cycle, which doesn’t only attract unnecessary charges, but also affects your credit score negatively. However, low-interest credit cards can be really good in emergency situations when you find it difficult to clear the full outstanding amount. Without a good credit history, it might be challenging to get a low-interest credit card, but you can get one once you build a good credit history. In case of any further doubts, feel free to reach out to us via the the comment section below!