Your annual percentage rate, commonly known as APR, essentially signifies the yearly interest rate imposed by your credit card issuer when you utilize your card for borrowing funds. It’s depicted as a percentage, indicating the actual annual expense associated with your credit usage over the time required to repay the borrowed amount.
To break it down further, if your APR stands at 21%, you’ll incur a fee equivalent to 21% of your outstanding balance each year. Nevertheless, since banks usually compute interest monthly, that 21% is divided into 12 months.
In a 21% APR scenario, you’d be levied 1.75% of your current balance after each billing cycle. It’s crucial to grasp that higher balances translate to more substantial charges. This underlines why making only the minimum monthly payment is often detrimental. In many instances, your minimum payment covers your interest charges and little else, failing to dent your overall balance significantly. In the long run, consistently paying only the minimum will yield minimal progress.
However, when you acquire a credit card with a 0% introductory offer, you enjoy a reprieve from interest charges for the introductory period. Some cards extend this offer to both transferred balances and new purchases. This means you can transfer balances from high-interest cards and repay them over the introductory period without incurring the interest costs you would on the original card. This strategy expedites debt repayment at a lower overall cost, a boon for every consumer.
Which one is the Best 0% Interest Credit Card?
Determining the best 0% interest credit card is subjective and contingent on your needs and priorities. However, irrespective of your specific preferences, the top-tier 0% APR credit card offerings should share common attributes. They typically provide equal months with the introductory rate applicable to balance transfers and new purchases. Additionally, an attractive credit card package should feature some form of reward structure to express gratitude for your patronage unless you stumble upon a balance transfer offer that waives the balance transfer fee instead.
No credit cards extend 0% financing for durations as long as 18 months without imposing a balance transfer fee. Nonetheless, there are card offers available with shorter 0% periods that don’t levy this Fee.
Aside from the card’s tangible benefits, a reputable credit card should be free of exorbitant membership fees. After all, what’s the point of conserving money during an introductory period if you relinquish those savings in the form of an annual fee?
The current average APR (Annual Percentage Rate) for credit cards is 17.72%. Let’s consider a scenario where you make a $4,000 purchase using a new card at this rate. If you decide to make monthly payments of $222.22, you’ll be able to clear your debt in 22 months, but during that time, you’ll also end up paying $684.09 in interest charges.
Now, if you were to switch to a credit card with an 18-month interest-free period for purchases, your monthly payments would allow you to pay off the entire balance within those 18 months, and you wouldn’t incur any additional finance charges. This means you’d save nearly $700 while also becoming debt-free sooner.
However, it’s worth noting that the credit card landscape has changed significantly due to the pandemic. Finding credit cards offering extended 0% APR on new purchases is more challenging than those offering 0% APR on balance transfers. We know of only two cards that provide 18+ months of 0% APR for new purchases.
Citi Simplicity® Card
With this offer, you’ll never have to worry about late fees, penalty rates, or annual fees. Enjoy a 0% introductory APR for 21 months on balance transfers from the date of your first transfer and a 0% introductory APR for 12 months on purchases starting from the date you open your account. After this period, the variable APR will be determined based on your creditworthiness, ranging from 19.24% to 29.99%. To take advantage of this offer, complete your balance transfers within four months of opening your account.
Please note that there is an introductory balance transfer fee, which is either $5 or 3% of the transfer amount, whichever is greater, for balance transfers completed within four months of account opening. For added security, Citi® Quick Lock is available to help protect your account.
To learn more and apply, please review the application and terms. This card is ideal for those with excellent or good credit. Here are the key details:
- Introductory APR for Purchases: 0% for 12 months
- Introductory APR for Balance Transfers: 0% for 21 months
- Regular APR: 19.24% – 29.99% (Variable)
- Annual Fee: $0
- Credit Needed: Excellent, Good Credit
U.S. Bank Visa® Platinum Card
“For a limited time, you can take advantage of a special 0% introductory Annual Percentage Rate (APR) on purchases and balance transfers, lasting for 18 billing cycles. After this period, the APR becomes variable.
Additionally, when you use your card to pay your monthly cellphone bill, you’ll receive Cell Phone Protection Coverage of up to $600 annually. Using our mobile app or online banking, you can quickly check your credit score anytime and anywhere. This service is simple to enroll in, user-friendly, and accessible for U.S. Bank customers.
Our Fraud Protection system monitors your card for any unusual activity and promptly notifies you to help prevent fraudulent transactions. You also have the flexibility to choose your payment due date, and no annual fee is associated with this card.
Please refer to the application, terms, and details for further information. Here’s a summary of key features:
- Introductory APR (Purchases): 0% for 18 billing cycles
- Introductory APR (Transfers): 0% for 18 billing cycles
- Regular APR: 19.24% – 29.24% (Variable)
- Annual Fee: $0
- Credit Needed: Excellent Credit”
Citi® Diamond Preferred® Card
Enjoy a 0% introductory Annual Percentage Rate (APR) for the first 21 months on balance transfers, starting from the date of your initial transfer. Additionally, you’ll benefit from a 0% introductory APR for the first 12 months on purchases from the date you open your account. Once this introductory period ends, your APR will vary between 18.24% and 28.99%, depending on your creditworthiness.
To make the most of this offer, complete your balance transfers within the first four months of opening your account. Remember that a balance transfer fee applies, which is either $5 or 5% of the transfer amount, whichever is greater.
Furthermore, you’ll have free access to your FICO® Score online, helping you keep track of your credit health. With Citi Entertainment®, you’ll enjoy special access to purchase tickets for various events, including concerts, sporting events, dining experiences, and more.
The best part is that there’s no annual fee, meaning you won’t be charged for enjoying these low introductory rates and all the associated benefits. This credit card is ideal for individuals with excellent or good credit.
Discover it® Balance Transfer.
Introducing a Special Offer: Discover’s Unlimited Cashback Match! With Discover, you’ll receive an incredible benefit – they’ll automatically match all the cash back you’ve earned at the end of your first year. The best part? There are no minimum spending requirements or maximum reward limits. Imagine turning $150 in cashback into a whopping $300!
Additionally, you can enjoy 5% cashback on everyday purchases at various places every quarter, such as Amazon.com, grocery stores, restaurants, and gas stations. This is available up to the quarterly maximum when you activate this feature. You’ll automatically earn an unlimited 1% cashback on all other purchases.
Discover goes the extra mile to protect your personal information online. They offer assistance in removing your data from select people-search websites that may otherwise sell your information. The best part is that this service is free, and you can activate it using their mobile app.
Every dollar you earn in cashback is a dollar you can redeem. Plus, there’s no annual fee, making it even more enticing. For detailed terms and conditions, click through to Discover’s website.
- Here’s a quick overview of the introductory offers and rates:
- 0% Intro APR for six months on purchases
- 0% Intro APR for 18 months on transfers
- Regular APR ranges from 17.24% to 28.24% as a variable APR
- Annual Fee: $0
- Credit Needed: Excellent/Good
- Take advantage of this fantastic opportunity with Discover!
Citi® Double Cash Card
When you use our cashback credit card, you’ll enjoy fantastic perks that put more money back in your pocket. Here’s how it works:
Earn While You Spend: Get rewarded for every purchase you make. You’ll earn a solid 2% cash back on every purchase, and that’s not all.
Double Your Cash Back: We’re not stopping at 1%. You get an additional 1% cash back when you make your payments on time. That’s 1% when you buy and another 1% when you pay off your purchases.
No Interest on Balance Transfers: If you want to transfer balances, we’ve covered you with a 0% introductory APR on balance transfers for a generous 18 months. After that, the variable APR will be between 19.24% – 29.24%, depending on your creditworthiness.
Balance Transfers Don’t Earn Cash Back: While balance transfers can save you money, they don’t earn cash back rewards. So, it’s a great way to consolidate your debt but won’t boost your cashback earnings.
No Interest on Purchases (for a Limited Time): While the introductory APR doesn’t apply to purchases, we’ve got you covered on balance transfers. Make sure you pay your entire balance, including balance transfers, by the due date each month, and you won’t accrue any interest on your purchases.
Introductory Balance Transfer Fees: For the first four months after opening your account, there’s an intro balance transfer fee of 3% of each transfer (minimum $5). After that, the Fee becomes 5% of each transfer (minimum $5).
No Annual Fee: You can enjoy all these benefits without worrying about an annual fee.
Credit Requirements: This card is available for reasonable or fair credit individuals.
So, why wait? Start earning cash back on your purchases today and enjoy the peace of mind that comes with our balance transfer offer. Apply now and make the most of your spending!