0% APR credit card
Credit cards are charging high interest rates as compared to all other loan products of the bank but promotional 0% APR credit card offers allow you to avoid high interest payments on purchases. You can you also avoid high interest by balance transfer facility. We have searched some best 0% APR cards to help you to decide which is best for you. During shortlisting of 0% APR cards we have considered some features such as rewards and additional perks so that you can get as much as possible.
Best Intro APR Credit Card
Here we will show you some best 0% Intro APR Credit Card. We have selected each after research at hundred of cards.
Citi Custom Cash Card
5% Cash Back up to $500
$200 Welcome Bonus
19.25% to 29.25% Variable APR
0% Intro APR for 15 months
$0 Annual Fee
Citi Rewards Card
2X Rewards up to $6,000
20,000 Points Welcome Bonus
18.75% to 28.75% Variable APR
0% Intro APR for 15 months
$0 Annual Fee
Chase Freedom Flex
5% Cash Back up to $1,500
$200 Welcome Bonus
20.50% to 29.25% Variable APR
0% Intro APR for 15 months
$0 Annual Fee
Methodology
Definitely, all zero percent APR cards are not equal. For selecting the best, we regularly search hundreds of credit cards and then short list only a few for you. The factors that we take in our research are as follows;
Thus, Intro 0% APR period, annual fee, rewards, rewards redemption, balance transfer facility & other Perks. In this article, our research is based at 0% APR. In other words, Our shortlisted card will be best in term of APR. It may not be best for you, if you do not have need of this facility. As an example, if you are a regular shopper and have sufficient funds then this card may not be best for you. We have evaluated many cards, many companies, many banks, many policies and then decided only a few of you.
What is meant by zero percent APR credit card ?
To sum up, 0% APR means that you don’t need to pay any interest at eligible purchases for specific period of time, for a specific promotional period. Moreover, Your APR will be zero after that regular APR will be charged. 0% APR facility may include zero mark up at eligible purchase or balance transfer facility. It may have this facility for more than one year. Some cards have 0% APR for 18 month. Some cards have 0% APR for balance transfer facility but you need to pay minimum payment at any case.
How zero percent APR credit card works?
Obviously, 0% APR credit card allows you zero percent markup at eligible purchases or zero balance transfer fee. But it depends upon the card company and card terms & condition. Zero percent interest may be for a specific purchase or specific period of time. Take a example that you have a card of $1000, APR rate is 23%. In this case you have to pay $19 as interest payment. Monthly payment will be $80. While, in the same case other card have 20% APR. Now, total interest payment will be 136 dollar and monthly payment will be $77. APR rate will decide which card is expensive for you and which is cheap for you.
What will happen when 0% APR period will expire?
Equally important, When 0% APR period will expire you have to pay regular APR. Regular APR have too much high rates that made too much expensive to this loan. If you don’t have any financial crisis or emergency need, we will not suggest you that pay high interest rate. We always recommend regular payments and full payments at monthly basis.
Pros and cons of 0% APR credit card
In short, When you apply for a card for the purpose of 0% APR, than consider from following pros and cons of 0% APR credit card.
Pros of 0% APR
- First, With 0% APR credit cards you have offered a long period to avoid high rate of interest so you save a lot of money by avoiding high interest rates.
- Second, 0% APR credit cards have minimum monthly payment requirement. It may easy for you to pay a very minimum amount each month. It will avoid the risk of your credit history and make your financial life easy.
- Third, By availing this facility you can pay your debt very easily at monthly installments and without high mark up. This facility play important role in paying your debts more fastly and easily.
Cons of 0% APR
- If due to any problem you fail to pay minimum monthly payment than card issue will revoke 0% APR facility and will start charging regular APR at your outstanding balance. Regular APR is too much high that will make unaffordable to everything.
- Card holder pays minimum payment every month with zero interest. But if due to any reason a card holder fail to pay minimum payment each month or remain fail to pay full amount during a promotional period, result maybe high interest & high debt.
- If You have needed to gain 0% APR facility for balance transfer. You have to pay some balance transfer fee that maybe 3% to 5% of outstanding balance. However many companies does not have balance transfer fee. But you have to consider this factor if your card issuer is charging balance transfer fee.
How much saving with zero percent APR?
Further, It will depend at factors such as your outstanding balance, length of promotional period and fees. It is also mandatory that pay before the expiry of promotional period. For better understanding saving at 0% APR, let’s take an example, you make $5,000 purchases and you have to pay the amount in 15 months. Card has regular APR of 20%. In this scenario, monthly payment will be $379.50 and you have to pay $692.35 in term of interest. Now if card have zero percent APR for 15 month Grace period. Your monthly payment will be $333.33. In this case saving will be $692.35 that is a huge amount.
How to choose a 0% APR credit card?
In addition, You should consider following factors before choosing 0% APR credit card;
- Always choose a card that have longer period for 0% APR. Longer period will ensure minimum monthly payment and long time to pay the debt.
- Take into the consideration perks offered by the card such as insurance, warranty and monthly statement offers.
- Check the fees. Your card may have balance transfer fee of 3% to 5% or it may have 0% APR. Before choosing a card takes a look at balance transfer and other fees.
- Observe your spending habit. Before choosing a card always takes a look at your spending habits and choose card according to your spending behavior. Some cards have high rewards for specific categories and special offers for special product. Your spending habits are very important to consider before choosing a credit card.
How to qualify for 0% APR credit card ?
Especially, Companies offer promotional APR from time to time. Wait the best time to get a best opportunity. To qualify for 0% APR, you have to consider your outstanding balance, promotional offer, your credit score and other factors. Always check terms and conditions of the card before applying any card.
Who can get 0% APR credit card?
As a matter of fact, Anyone who have excellent credit score and make routine purchases can avail this facility.
How to maximize your saving with 0% APR credit card
In summary, Following are some types that can play important role to maximize your saving at 0% APR credit card.
- Buy creating a proper payment plan at big purchase or for balance transfer, you can get maximum saving. Before the expiry of promotional period you should consider that how much you can pay monthly
- Setting automatic monthly payment will help you to manage your credit score and your monthly payment a due time. It is a good idea to maintain your reputation with card issuer.
- Read the terms and conditions of the card in detail so that you could be aware of all policies of the card issuer. Read, what your card have and what doesn’t have. For example your card offer only 0% APR at balance transfer and it does not allow you any Grace period and you can’t make any other purchase.