Regular APR: Credit cards offering intro 0% APRs tend to have higher regular APRs than low interest cards.For new purchases or lingering debt, the longer the better, but if you're completing a balance transfer, consider the cost of any balance transfer fees before applying. Many popular rewards cards offer no interest for 15 months, and non-rewards cards can have 18- and 21-month intro 0% APR periods. Length of intro APR period: Cards can have intro periods anywhere from three months to 20 months.Do you carry a balance month to month? A low interest credit card offers a relatively consistent APR every month, compared to 0% APR cards that typically charge high interest rates after the into period ends.Īfter you determined which credit card you want to apply for, compare cards by these key factors:.Do you plan on making a large purchase? A 0% APR card can provide you with a lengthy intro period that allows you to pay off debt for over a year with no interest.Are you carrying debt from a high interest credit card? Then you should consider a balance transfer credit card with up to 20 months no interest.If you're not sure whether a 0% APR card or a low interest credit card is the right choice, ask yourself the following questions. None of the cards on this list charge cardholders deferred interest. And if you have a store card, you could be hit with a bill for all the interest you accrued since the date you made your purchase or transfer (known as deferred interest). If you don't, expect to be hit with the regular purchase APR. It's very important to pay off any transferred debt or lingering new purchase balances before the intro 0% APR period ends. The amount you need to pay each month in order to have a zero balance at the end of the intro period depends on the length of the intro period.įor example, if you have a $4,500 balance on the Chase Freedom Flex which offers no interest for the first 15 months on balance transfers and purchases (then 14.99% to 23.74% variable APR), you'll need to pay $300 each month to pay off your old balance before the intro period ends.īut if you have the Citi® Double Cash Card, with 0% for the first 18 months on balance transfers (then 13.99% to 23.99% variable APR), the monthly payment decreases to $250. You'll need to come up with a plan to pay off credit card debt. Make sure you familiarize yourself with any fine print associated with the 0% APR offer, such as expiration date, timeline for completing a balance transfer, any balance transfer fees and the interest rate once the intro period ends.
Follow these tips to get the most benefit out of your card: Read the fine print
A 0% APR card is most beneficial when you understand the terms of the offer and set up a plan to pay off your debt.
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