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Zero interest credit cards

Wow, 0% interest credit cards are offered now almost by any bank. Let’s find out how it works and why credit card companies are so generous to offer interest free credit cards.

The truth is that no credit card has a 0% interest, unless it has a huge annual fee that will cover all possible interest. Typically credit cards offer 0% APR for the so called introductory period that last usually from 6 month up to 18 month.

The main goal of the  introductory APR from the bank side is to encourage you to move your balance from your existing card (or several cards) to the new one and get you as a loyal customer. That’s why the 0%APR in most cases apply for both APR for purchases and for balance transfer – it will make your move to a new credit card more comfortable and you are more likely to switch to the new card.

The problem usually starts when the intro period finishes, and you face the balance (that sometimes is bigger than it was before you switched to the new credit card). Some people find themselves in huge debts after the introductory rate turns into the ordinary one. The main reason is that interest free credit card may inspire you to spend more money, since you don’t have to pay any interest for now.And from the point where the intro APR expires, you suddenly start paying off not only the principal but also the interest, which is somewhere between 10,99% – 20,99%, based on the credit card and your credit score. The worst decision you can make at that point is to jump on another 0% APR offer and to escape from debt one more time. Probably you will not have so many options at that time because your credit score can get lower since your debt utilization ratio becomes worse.

The best advice with the zero interest offers is to find the card that has not only the biggest introductory period with the zero interest, but also has a lowest APR after that. And still the best way to go is to try your best to pay off all the balance before the introductory period is over.

Tips in choosing the best 0% APR card

No doubt zero percent interest rate is a great deal if you use your card smartly. There are some tips how chose the best offers for your situation:

  • check the length of introductory period: the more the better.
  • check out annual fee: annual fee can minimize your saving on 0 APR. Think twice if a fee exceeds a three digit number. Better consider no annual fee options that we’ve chosen for you below.
  • be aware of regular rate: 0% APR offer usually lasts from 6 months to 1,5 year. You’ll start paying the regular APR on your balance once the introductory period is over, so make sure it will be lower than your current APR.
  • pay attention to the statements: rate increases must be announced by the issuer at least 15 days before they become applicable, so read your statement carefully.
  • check for any hidden costs: hidden costs may include transaction fee and annual fee for the second year. Some banks ask for a balance transfer fee  (e.g. 3% by Discover bank). Late payment fees, cash advance fees and other charges may also appear in your monthly statement. So read terms and conditions carefully.

zero APR offersIt is a great advice to pay off all your bills in time and try to carry a low balance. It will not only save you from paying penalties and interest, but will also help you in building a good credit score.

Please consider following cards that offer no interest for the introductory period and have other interesting options as well:

 

 

Discover cards

All Discover Cards have 3% balance transfer fee

Discover More Card

  • 15 month introductory period with 0% APR for balance transfer and for purchases
  • no annual fee
  • 5% cash back for changing through the year categories, 1% cash back for other purchases
  • 10,99-19,99% standard APR

Open Road  Card

  • 15 month introductory period with 0% APR for balance transfer and for purchases
  • no annual fee
  • 10,99-19,99% standard APR
  • 2% cash back for first $250 spent on gas and dining monthly, not a great deal though

Student More Card

  • 15 month introductory period with 0% APR for balance transfer
  • 12,99-18,99% APR for purchases
  • no annual fee
  • 12,99-18,99% standard APR
  • 5% cash back with a quarterly limit on selected categories that change over the year

Chase Bank offers

Freedom Card

  • 15 month intro zero APR on balance transfers and purchases
  • 12,99-22,99% regular variable APR then
  • no annual fee
  • 3% balance transfer fee

Slate Card

  • 15 month intro zero APR on balance transfers and purchases
  • 11,99-21,99% regular APR then
  • balance transfer fee waived for the first 60 days from the opening the account, 3-5% fee applies to every transfer after that
  • no annual fee

Capital One

Cash Rewards Card

  • 8 month intro 0% APR
  • 12.9-20,9% APR after
  • 1% cash back with additional incentives
  • excellent credit needed
  • no annual fee

Platinum Prestige

  • 14 month intro 0% APR
  • 10.9-18,9% APR after
  • 1% cash back with additional incentives
  • excellent credit needed
  • no annual fee

Citi Bank

Dividend Platinum Select VISA

  • 12 month 0% APR for balance transfer and purchases
  • 12,99-22,99% APR then
  • 3% balance transfer fee
  • 1% cash back, 5% cash back for selected merchants
  • no annual fee

AT&T Universal Savings Platinum Card

  • 0% balance transfer APR for 15 month, 12,99% after that
  • 3% balance transfer fee
  • 12.99% purchase APR
  • no annual fee
  • up to 1.5% cash back (if you spend more than $750) with no limit

American Express

Blue Card

  • 12 month zero APR on balance transfer and purchases
  • 15,24-20,24% APR after
  • rewards points

Blue Cash Everyday Card

  • 12 month zero APR on balance transfer and purchases
  • 17,24-22,24% APR after
  • 3% cash back on supermarkets, 2% on gas and department stores, 1% on other purchases
  • no annual fee

Blue Cash Preferred Card

  • 12 month zero APR on balance transfer and purchases
  • 17,24-22,24% APR after
  • 3% cash back on supermarkets, 2% on gas and department stores, 1% on other purchases
  • annual fee $75

Bank of America

BankAmericard VISA

  • 0% APR for first 15 months
  • 10,99%-19,99% APR after that
  • 3% balance transfer fee
  • no annual fee

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