Credit-card advertising makes spending feel like earning, whether it’s points, miles, cash back or a welcome bonus. But if you ever find yourself carrying a balance, the more important number isn’t related to rewards — it’s the interest rate.
Credit card interest rates are some of the highest across consumer finance, with the current U.S. average at just under 21%. This means any debt you carry over, no matter how small, can potentially snowball out of control with additional interest.
If you’re prone to overspending or unexpected expenses come up, a flashy rewards card can hurt you in the long run. Rewards cards often charge higher interest rates compared to credit-building cards, on top of higher annual fees.
Below, CNBC Select covers what you should know about rising credit card debt and tightening lending standards, plus the credit cards to consider if you’re looking for a lower interest rate.
Credit card debt is getting harder to manage
For a lot of people, credit card debt isn’t a quick fix. If you’re already in an unstable financial position, a higher APR means more of your payments are paying off interest, not your original balance. As such, it will take longer to pay off your full principal, and you’ll be paying more than you originally owed.
According to the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit, 6.97% of credit card balances transitioned into serious delinquency (90+ days delinquent) from Q1 to Q2 of 2026, for a total of 12.92%. A credit card delinquency is when a payment is at least 30 days past due, and serious delinquency is 90+ days past due.
While Americans are having a harder time getting rid of debt, there’s also evidence that banks are tightening their lending standards.
The Fed’s July 2026 Senior Loan Officer Opinion Survey on Bank Lending Practices, which measures lenders’ standards and terms for businesses and households, found that lending standards for credit cards have gotten stricter since the last quarterly survey. When asked to consider how rates compare to the traditional average, banks reported that all loan categories had tightened, with the exception of commercial and industrial (C&I) loans.
Consumers who have difficulty qualifying for credit from traditional lenders may turn to products designed for borrowers with less-than-prime credit. Financial technology company Atlanticus, which serves consumers who may be overlooked or declined by other lenders, is one example.
In a second-quarter report, the company reported growth in revenue and other income for credit cards and private-label credit receivables during the first six months of 2026. The company said the increases were predominantly driven by growth of new customers in both of these areas.
When should you skip a rewards credit card?
If you’re considering applying for a rewards credit card, you might want to reconsider if you have a habit of carrying a balance; there’s a good chance any interest you’re charged could wipe out your rewards earnings.
For example, say you’re interested in a flat-rate 2% cash-back card. If you charge $1,000 in purchases to that credit card, you’ll only earn $20 in cash back. If you carry that balance over from one month to the next, the rewards you earn can quickly be outweighed by interest charges; the average credit card interest rate (21%) is more than 10X the 2% rewards rate.
If you carried even a $300 balance on that card, you’d owe around $5.25 in interest after one 30-day billing cycle. That’s over a quarter of your rewards value, and it could get worse if you continue to let the balance grow.
When to prioritize a low-interest credit card
Choosing a credit card is a fairly personalized decision, based on your current finances, spending habits, credit score and more. However, there are some general signs for when a low-interest card could be your best fit:
- You find yourself sometimes carrying a balance.
- You are looking to finance an upcoming expense.
- Your income isn’t stable month to month.
- You often only make the minimum payments.
- You’re focused on rebuilding credit and want to reduce potential costs.
If you decide a low-interest credit card is a good fit for you, you can then start comparing options.
3 credit cards with lower interest rates
The Platinum Mastercard® from First Tech Federal Credit Union offers cardholders a low, competitive APR, ranging from 10.49% to 18.00% depending on your creditworthiness. While the card doesn’t offer rewards, it has a $0 annual fee and doesn’t charge fees on purchases made abroad. It also comes with purchase assurance for up to 90 days after purchase if an item you bought is damaged or stolen.
You need to be a member of First Tech Federal Credit Union to qualify, but anyone can become a member by joining the Community History Museum, Financial Fitness Association or New England Chapter. First Tech can even cover your membership fee to either organization.
Platinum Mastercard® from First Tech Federal Credit Union
Information has been collected independently by CNBC Select Information about the Platinum Mastercard® has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
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Welcome bonus
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Annual fee
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Intro APR
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Regular APR
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Pros
- No annual fee
- Low APR
- No balance transfer or foreign transaction fees
Cons
- No rewards
- No welcome bonus
If you’re looking for a card that provides payoff flexibility through an intro APR, the Wells Fargo Reflect®Card is worth consideration. The Reflect comes with a 0% intro APR for 21 months from account opening on both purchases and qualifying balance transfers, followed by a 17.49%, 23.99% or 28.24% variable APR. Balance transfers must be made within 120 days to qualify for the introductory rate.
The card’s APR after the intro period will depend on your creditworthiness, but strong candidates could get an APR of under 18%. Regardless, the main goal should be to pay off your balance before interest kicks in.
The Wells Fargo Reflect® Card is one of the absolute best cards you can apply for if you want to save on interest and pay down debit quickly thanks to its extra generous intro-APR offer on purchases and qualifying balance transfers.
- Incredible intro-APR for purchases and qualifying balance transfers
- No annual fee
- Cell phone insurance: up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible
- No rewards
- No welcome bonus
- High balance transfer fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.49%, 23.99%, or 28.24% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
- $0 annual fee.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It’s an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Balance transfer fee
Foreign transaction fee
The Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union offers a variable APR of 12.99% to 18.00% depending on creditworthiness, and it also happens to offer rewards. You can earn 3X points on gas (paid at the pump) and groceries, plus 1.5X points on everything else. These are pretty generous rewards rates for a card that doesn’t charge an annual fee and has a maximum APR that’s lower than the national average.
You need to be a member of Andrews Federal Credit Union, but there are several ways to join, from being part of an eligible employer group to having an American Consumer Council (ACC) membership. The $15 ACC fee can be waived using the promo code ANDREWS.
Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union
Information about the Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
3X points on gas and grocery purchases and 1.5X points on all other purchases
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Welcome bonus
Earn 10,000 points when you spend $1,500 within the first 90 days
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Annual fee
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Intro APR
N/A for purchases and as low as 6.99% for the life of the balance transfer (offer valid through March 31, 2026)
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Regular APR
12.99% to 18.00%variable on purchases and balance transfers
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Pros
- Low variable APR
- No annual fee
- No foreign transaction fee
Cons
- Small welcome bonus
- No intro-APR offer
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