Credit card interest rates can make a huge difference in how much you pay over time, especially if you carry a balance. A 5.99% interest rate credit card is considered extremely low compared to the industry average, which typically ranges from 16% to 30%. If you’re looking for ways to reduce interest charges, consolidate debt, or finance a large purchase affordably, a 5.99% APR credit card might be the perfect solution.
But are these low-interest credit cards easy to get? Which banks offer them? And how can you qualify for one?
This guide will cover everything about 5.99% APR credit cards, including:
✅ What a 5.99% interest rate credit card is
✅ How it compares to other credit cards
✅ Where to find credit cards with a 5.99% APR
✅ How to qualify for the lowest possible rate
✅ Tips for reducing credit card interest
By the end of this article, you’ll have all the information you need to find and use a low-interest credit card to your advantage.
What Is a 5.99% Interest Rate Credit Card?
A 5.99% interest rate credit card is a credit card that charges an annual percentage rate (APR) of 5.99% on purchases, balance transfers, or both.
🔹 Fixed vs. Variable APR:
- Some cards offer fixed 5.99% APR, meaning the rate won’t change.
- Others have variable 5.99% APR, which can increase over time.
📌 Why It’s Important:
- The average credit card APR in 2024 is around 22%.
- A 5.99% APR card can save you thousands in interest if you carry a balance.
Low-interest credit cards are ideal for debt consolidation, large purchases, and financial emergencies.
How a 5.99% Interest Rate Compares to Other Credit Cards
| Type of Credit Card | Typical APR Range | Best For |
|---|---|---|
| 0% Intro APR Credit Cards | 0% for 12-21 months, then 18%-30% | Short-term financing, balance transfers |
| Low-Interest Credit Cards | 5.99% – 12.99% | Carrying a balance long-term |
| Rewards Credit Cards | 16% – 26% | Earning cashback or points |
| Bad Credit Credit Cards | 25% – 35% | Rebuilding credit |
| Store Credit Cards | 25% – 30% | Store discounts |
A 5.99% APR credit card is one of the lowest you’ll find, making it a great alternative to high-interest options.
Who Offers 5.99% Interest Rate Credit Cards?
Most major banks and credit card issuers do not offer permanent 5.99% APR credit cards. However, some credit unions and specialty lenders offer them to eligible customers.
1. Credit Unions Offering 5.99% APR Cards
Credit unions are member-owned financial institutions that often offer lower interest rates than traditional banks.
✅ Top Credit Unions with Low APR Cards:
- PenFed Credit Union – Offers rates as low as 5.99% APR
- Navy Federal Credit Union – Low APR credit cards for military families
- DCU (Digital Federal Credit Union) – Fixed-rate APRs starting at 6%
🔹 How to Qualify for a Credit Union Card:
- You may need to join the credit union and meet membership requirements
- Some credit unions have geographic or employment-based eligibility
📌 Tip: If you don’t qualify for a credit union card, consider community banks or regional lenders.
2. Special Promotional Offers from Banks
Some banks and credit card issuers offer 5.99% APR as a promotional rate for a limited time.
Example Offers:
- Wells Fargo – Balance transfer card with low promotional APR
- Bank of America – Limited-time APR offers for existing customers
- Citi Bank – Special APR offers for high-credit-score customers
📌 Tip: These offers may require excellent credit and can increase after the promo period.
3. Personal Loans as an Alternative
If you can’t find a 5.99% APR credit card, you can consider a low-interest personal loan instead.
🔹 Why Choose a Personal Loan?
- Fixed 5%-10% APR rates for debt consolidation
- No risk of interest rate increases
- Helps pay off credit card debt faster
Many online lenders, like SoFi, LightStream, and Marcus by Goldman Sachs, offer low-interest loans for credit card refinancing.
How to Qualify for a 5.99% APR Credit Card
Getting approved for a 5.99% interest rate credit card isn’t easy. You’ll need strong financial credentials to qualify.
✅ 1. Maintain a High Credit Score
Your credit score is the biggest factor in determining your APR.
📌 Target Score for 5.99% APR: 740+ (Excellent Credit)
✅ Ways to Improve Your Credit Score:
- Pay bills on time
- Keep credit utilization below 30%
- Avoid applying for multiple credit cards
- Dispute any errors on your credit report
✅ 2. Have a Strong Payment History
Lenders look at your past credit behavior to determine risk.
🔹 Key Factors:
- No late payments in the past 12-24 months
- Low credit card balances
- Good mix of credit accounts
📌 Tip: Use autopay to ensure on-time payments.
✅ 3. Keep Your Debt-to-Income (DTI) Ratio Low
Banks and credit unions evaluate your debt-to-income ratio before approving low-interest credit cards.
🔹 Formula:
DTI=Total Monthly Debt PaymentsMonthly Income×100\text{DTI} = \frac{\text{Total Monthly Debt Payments}}{\text{Monthly Income}} \times 100
📌 Ideal DTI for 5.99% APR Approval: Below 30%
✅ Ways to Lower DTI:
- Pay down existing debts
- Increase your income
- Avoid taking on new loans
Alternatives to a 5.99% APR Credit Card
If you can’t qualify for a 5.99% APR credit card, consider these alternatives:
1. 0% Intro APR Credit Cards
- Best For: Short-term financing (12-21 months)
- Example Cards:
- Citi Simplicity® Card – 0% APR for 21 months
- Chase Freedom Unlimited® – 0% APR for 15 months
2. Balance Transfer Credit Cards
- Best For: Transferring high-interest debt
- Example Cards:
- Wells Fargo Reflect® – 0% APR for up to 21 months
- BankAmericard® – 0% APR for 18 months
3. Personal Loans
- Best For: Replacing high-interest credit card debt
- Example Lenders:
- Marcus by Goldman Sachs – Fixed 5%-10% APR
- SoFi Personal Loans – Low-rate loans for good credit
Final Thoughts: Is a 5.99% APR Credit Card Worth It?
If you qualify for a 5.99% APR credit card, it can save you thousands in interest compared to standard credit cards.
✅ Key Takeaways:
- 5.99% APR is rare and usually available through credit unions
- You need excellent credit (740+) and low DTI to qualify
- Consider balance transfer cards or personal loans as alternatives
- Always compare multiple offers before applying
If you can secure a low-interest credit card, you’ll be in a much stronger financial position. Start applying today! 🚀
Also Check:
- Which Credit Card Is Best With the Lowest Interest Rate?
- The Best Lowest Interest Rate Credit Card With No Annual Fee: If you want…
- Best No Annual Fee Credit Cards in February 2025: Top Picks for Every Need
