As with all other types of credit cards, zero-interest credit cards let you make purchases on credit, which you can then repay by making at least minimum monthly payments. When you carry forward balances from one billing cycle to the next with a regular card, the outstanding amount accrues interest. However, with a card that comes with a 0% APR offer on purchases, you get to pay no interest for a predetermined time. Once this period ends, you need to start paying interest toward any outstanding promotional balance. Show
More about 0-APR Credit Cards MoneyGeek’s Take: Top 11 0% APR Credit Cards
Our experts have selected the best no-interest credit cards after accounting for all their pros and cons. For example, if a card comes with an extended promotional period, we inform you about it at the start. Some of the best 0% APR cards come with promotional periods of 15 months or more. Several such cards let you earn rewards or cash back. The top alternatives tend to come with no annual fees as well. As long as you pay off your balance before the end of the promotional period, you pay no interest. You might consider using such a card to make an expensive purchase that you plan to pay off within a stipulated time frame. The Best Credit Cards for 0% APR at a GlanceSorry. We were not able to load data for table... HOW WE RANK CREDIT CARDS FOR 0% INTRO APR Our experts analyze 57 data points they collect from issuer websites, the Consumer Finance Protection Bureau and details provided by our partners to make sure we give you the most accurate information possible. They subject all new and existing cards from this segment to our unique ranking methodology that takes multiple parameters into account to arrive at the best of the lot.
Quick Tips for Comparing Zero Interest Credit Card OffersYou need to consider different factors before applying for a 0% interest credit card.
MoneyGeek’s Quick Guide to Understanding 0% APR Credit CardsA 0% APR credit card is one that charges no interest on purchases, balance transfers or both for a predetermined time frame. More often than not, you need good to excellent credit to qualify. Low-interest credit cards, unlike 0% APR cards, come with low APRs that stay in place for as long as your account remains active. Some cards from both categories come with no preset spending limits. This means that your credit line fluctuates based on your purchase, payment and credit histories. What’s the Difference Between a 0% Credit Card and a Low-Interest Card?When you get a credit card with a 0% APR offer, you get to pay no interest for a given number of months, typically ranging from 12 to 20. Once the introductory period ends, any outstanding balance starts accruing interest. Depending on the card you get, the 0% APR offer might apply either on new purchases or balance transfers or even on both. You’ll find out the APR that will apply after the intro period once you get approved for your card, and it essentially depends on your creditworthiness. The low APR of a low-interest credit card stays in effect as long as your account remains active. However, credit card interest rates are typically variable, which means it is subject to change based on federal prime interest rates. Even if your card’s low APR changes because of fluctuations in prime rates, you can still expect it to be toward the lower end of the spectrum. With low-interest credit cards, the APR that applies to purchases might not be the same as the APR that applies to balance transfers. In addition, the APR on cash advances is typically high no matter which card you get. MONEYGEEK QUICK TIP If you take advantage of a 0% balance transfer offer, you must still pay off all of your purchases each month to avoid interest on those transactions. — Lee Huffman, credit card expert at BaldThoughts.com How Do 0% APR Credit Cards Work?0% APR cards work in the same basic manner as regular credit cards do, wherein you are required to make at least minimum monthly payments toward the amount you borrow. In addition, they charge no interest for a stipulated time frame. However, there’s more:
How to Take Advantage of Zero-Interest Credit CardsA 0% APR card can help you avoid or minimize how much you pay in interest charges. If you have no outstanding balance at the end of the promo period, you pay no interest at all. Once the promo period ends, any outstanding balance starts accruing interest at the card’s regular APR. That is why you should try to pay off as much of the balance as possible before the intro 0% APR offer ends. Consider the example below to see how much a balance transfer can save. how much a balance transfer can save
Are 0% APR Credit Cards Worth It?A 0% APR credit card can be worth it if you have a clear goal in mind. When appropriately used for a predetermined time, this type of card can provide the help you need to make a large purchase or to avoid paying interest on existing credit card debt. However, you need to determine if the benefits outweigh the possible drawbacks at the very onset. Benefits
Risks
Expert Advice For Finding the Right CardWe’ve asked academic and financial experts a few questions, the answers to which can help you determine if you should consider getting a card that comes with a time-bound 0% APR offer.
Haibo (Stephen) Yao Assistant Professor of Insurance & Risk Management at the University of Central Arkansas READ ANSWERSMalcolm Robinson Professor of Economics at Thomas More University READ ANSWERSChris Tamm Associate Professor of Finance, Director - Institute for Financial Planning & Analysis at Illinois State University READ ANSWERSKathryn Morrison Instructor at the School of Health & Consumer Sciences at South Dakota State University READ ANSWERSFrank G. Cabano Assistant Professor, Marketing and Management at The University of Texas at El Paso READ ANSWERSDr. Mary Sasmaz Assistant Professor at Baldwin Wallace University READ ANSWERSAlex Young Assistant Professor of Accounting, Taxation and Legal Studies in Business at Hofstra University READ ANSWERSMasud Chand Professor at Wichita State University READ ANSWERSLawrence Chui Associate Professor of Accounting at the University of St. Thomas, Opus College of Business READ ANSWERSRobert Warren Instructor at The University of North Dakota READ ANSWERSDr. Steven Kozlowski Assistant Professor in the Finance Department at Fairfield University’s Dolan School of Business READ ANSWERSMauricio Rodriguez Professor at the Neeley School of Business at Texas Christian University READ ANSWERSRichard M. Proctor Associate Professor of Finance at University of Siena READ ANSWERSDr. Chandan Kumar Jha Assistant Professor of Finance, Madden School of Business, Le Moyne College READ ANSWERSTom Hall Associate Professor & Associate Director of the Center for Public History at Christopher Newport University READ ANSWERSGeorge Langelett Professor at Ness School of Management and Economics, South Dakota State University READ ANSWERSDr. Corey Cole Assistant Professor of Finance at Eastern New Mexico University READ ANSWERSRobert H. Scott III, Ph.D Professor in the Department of Economics, Finance and Real Estate at Monmouth University Paul (Ted) Klontz, PhD Associate Professor of Practice of Financial Psychology and Behavioral Finance at Creighton University’s Heider College of Business and Co-Founder and Director of the Financial Psychology Institute® READ ANSWERSMay Jiang CPA, CFP®, Founder of Beyond Profit and Wealth Consulting READ ANSWERSLambrianos Nikiforidis, Ph.D. Assistant Professor of Marketing at SUNY Oneonta READ ANSWERSPriya Raghubir Professor of Marketing at New York University Stern School of Business READ ANSWERSDanny Chung Program Manager at California State University, San Bernardino READ ANSWERSJohn Lopez Senior Professor of Practice at C.T. Bauer College of Business at the University of Houston READ ANSWERSAmanda S. King Professor of Economics at Georgia Southern University READ ANSWERSMitchell Franklin Associate Professor of Accounting at the Madden School of Business at Le Moyne College READ ANSWERSMahmoud Haddad Professor of Finance at The University of Tennessee at Martin READ ANSWERSS. Abraham Ravid Sy Syms Professor of Finance, Sy Syms School of Business at Yeshiva University READ ANSWERSFAQs About 0% APR Credit CardsIn this section, we provide answers to other commonly asked questions about 0% APR credit cards. What are the best 0% interest credit cards? (adsbygoogle = window.adsbygoogle || []).push({});The best 0% interest credit cards are ones that offer extended promotional periods and give you the ability to earn rewards or cash back. The top cards from this category come with no annual fees as well. Are 0% interest credit cards good?Zero-interest credit cards are good for avoiding paying interest during a predetermined period. The 0% APR might apply to new purchases, balance transfers or both. These cards are good, provided you do not keep any outstanding balance when the promo period ends. How to get 0% interest on an existing credit card?Some card issuers provide 0% balance transfer offers to existing customers through targeted mailings or online offers. Contact your card's customer service to see if you are eligible. If you have good standing with your card provider and excellent credit, you may also consider negotiating for a lower rate. Does a 0% interest credit card affect your credit score?A 0% interest credit card has the potential to affect your credit score just like any other credit card. For instance, if you end up using much of the credit that’s made available to you, it may have an adverse effect on your credit utilization ratio, which, in turn, might affect your credit score. What is the minimum payment on a 0% interest credit card?Credit card providers calculate minimum payments on 0% APR cards in the same way that they do for regular cards. In most cases, you need to pay the higher of either a flat fee or a fixed percentage of the total outstanding balance. Does 0% APR mean no interest on a credit card?While APRs and interest rates are not the same when it comes to mortgages and auto loans, the credit card interest is closely related to APR. So, yes, 0% APR means no interest on a credit card — although only for a predetermined period. Should I transfer my credit card balance to 0% interest?You may use a balance transfer card to pay off existing high-interest credit card debt. Doing so is ideal when you’re sure about paying off the entire amount before the end of the promo period because a card’s regular APR kicks in then. You might also have to pay balance transfer fees, which could be up to 5% of the transferred amount. How do I transfer credit card debt to a 0% interest card?Start by selecting a card that comes with a 0% APR offer on balance transfers. If you have the option of providing details of the card from which you wish to transfer a balance during the application process, do so. Alternatively, speak with a customer service representative of your card provider. Once initiated, a balance transfer usually goes through in five to seven days, although it might take up to 21 days with some card providers. Why do credit cards offer 0% APR?The main aim of credit card companies that run 0% APR offers is to attract new customers. Besides, while you pay no interest for a given time, they still make money because of you. For instance, every time you make a purchase, the merchant in question needs to pay an interchange fee. If you plan to get a 0% APR card for a balance transfer, you might need to pay a balance transfer fee. In addition, the regular APR comes into play as soon as the promotional period ends. How can I extend a 0% APR credit card?Most banks will not extend the duration of your 0% APR offer. If you need more time to pay off your balance, your best option is to apply for a balance transfer card to receive a new 0% APR offer. Pick a new bank when applying because some banks will not allow you to do a balance transfer between two cards at the same bank. Now that you know how 0% APR cards work on new purchases and balance transfers, determine if getting one might work well for you. If you think it might, make sure you compare your alternatives across aspects such as promotional periods, fees and rewards. Can you get a 0% APR credit card?A 0% APR credit card can be useful for consolidating existing credit card debt or making a large purchase. Such cards offer interest-free periods, which typically range from six months to nearly two years, during which you're not being charged interest on your purchases, balance transfers or both.
What kind of credit score do you need to get 0% interest?You typically need a good to excellent credit score to be approved for 0% interest credit card offers, which generally means a FICO® Score☉ of 670 or higher. If you receive an offer for a 0% APR credit card in the mail or online, that doesn't mean you'll be approved.
What is the easiest card to get with no credit?Easiest Credit Cards to Get with Bad Credit. No Credit Check: OpenSky® Secured Visa® Credit Card.. No Deposit: Credit One Bank® Platinum Visa® for Rebuilding Credit.. Rewards Categories: U.S. Bank Cash+® Visa® Secured Card.. Unlimited Cash Back: Capital One Quicksilver Secured Cash Rewards Credit Card.. Can I get a Discover card with a 600 credit score?None of the cards have a minimum credit score required for approval. Discover also offers a pre-approval form, so people can see whether they would be approved for a credit card and what APR they would receive before they apply.
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