Finance A Purchase Or Get Out Of Debt With A 0% Card
You have plenty of choices if you want to avoid paying credit card interest. The cards that offer up to 18 months of interest-free purchases are perfect for financing a big-ticket item.
On the other hand, if the interest on your credit card balances is eating you alive, you can use a card that offers no interest on balance transfers to start climbing out of debt. These cards allow you to apply 100% of your monthly payment to reducing your balance. The only cost is a one-time transfer fee.
Whatever your motivation for seeking an interest-free card, compare all features, including bonuses and rewards, when considering your options.
Apply For A New Credit Card With A Different Issuer
When your credit card interest-free APR period expires and you still haven’t finished paying off your debt, you can apply for a new 0% introductory APR with a different card issuer. However, before you proceed with your application process, make sure that your card comes with the same 0% introductory APR. Also, make sure that you can transfer your existing balance to your new card.
Chase Freedom Unlimited: Best For Bonus Categories
In addition to a great bonus and earning structure, the Chase Freedom Unlimited offers a 0% APR introductory period for 15 months from account opening on new purchases . This way, you can earn cash back while financing large purchases just make sure youre paying off your balance before the end of the intro APR period to avoid paying interest.
The Chase Freedom Unlimited earns 5% back on travel booked through Chase Ultimate Rewards, 3% on dining and drugstore purchases and 1.5% on all other eligible purchases.
Its also a great card to pair with your existing Chase credit cards to earn cash back on non-bonus spending in fact, it makes up one-third of the Chase Trifecta. If you have an Ultimate Rewards credit card, such as the Chase Sapphire Preferred Card or Chase Sapphire Reserve, you can combine rewards and take advantage of 25% to 50% Chase travel portal redemption bonuses and transfer partners. Since TPG values Ultimate Rewards points at 2 cents each, youll get a 3% return on all non-bonus spending when you pair the Freedom Unlimited with a Chase Ultimate Rewards card.
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Pay Your Full Balance To Avoid Ever Paying Interest
They say the best things in life are free. But for lifes wants and needs worth paying for, why not take advantage of credit card introductory offers that essentially give you interest-free financing?
No matter what you need to pay off be it a new purchase or existing debt the right credit card can save you thousands in interest charges. Thats money you can put into savings or use toward lifes next big necessity.
What Credit Card Has The Longest Interest
This will largely depend on your intentions for the card. Thats because some cards offer longer intro periods for balance transfers than for new purchases and vice versa.
And, keep in mind that card issuers change terms and rates regularly so the best offering now could very well be less-than-stellar six months from now. Some cards also come with caveats.
Take, for example, the Citi Simplicity® Card. Current new cardholders can take advantage of an introductory 0% APR on balance transfers for a typically unheard-of length of time.
You may also find other cards that offer 18 months or more of interest-free balances but tack on an annual fee or balance transfer fee to offset the savings. Whats more, some cards can end your interest-free period early if you record a late payment.
Before you choose the card you want to apply for, be certain that it meets all of your potential needs. You can only benefit from an introductory rate if you know the rules. That may mean completing all of your balance transfers within a 60-day window after opening your card or possibly paying a fee for the balance transfer.
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What Is The Best 0% Interest Credit Card
The best card with introductory 0% interest on purchases is the Chase Freedom Unlimited® , and it offers a highly competitive cash back rewards program with no annual fee. When you earn rewards on a card with intro APR offers or just pay your balance in full each month, youre quite literally earning free money just for using the card.
For balance transfers, the winner is the Citi Simplicity® Card. This card currently has one of the longest introductory interest-free balance transfer periods on the market followed by a competitive ongoing APR thereafter. Balance transfer amounts do not qualify for rewards, however, and a balance transfer fee may apply.
Be sure to review the regular APR for each card that kicks in after the introductory period is over. Its wise to choose the card with the lowest APR possible, even if you lose a month or two of 0% financing.
Capital One Savorone Cash Rewards Credit Card: Best For Entertainment Cash Back
Whether youre a city dweller or a foodie , the Capital One SavorOne offers some serious rewards for your everyday purchases all for no annual fee. Youll earn 3% cash back on dining, entertainment, popular streaming services and at grocery stores, plus 1% on all other eligible purchases.
You can even bring the SavorOne along with you on your international travels as this card doesnt charge any foreign transaction fees. Finally, your rewards will never expire as long as you keep your account open.
Official application link: Capital One SavorOne.
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Why Should You Get A Fair Credit Card With High Limits
Credit cards for fair credit comprise a variety of selection including cards that provides rewards like bonus points and cashback. Therefore, finding the right can help you to rebuild your credit history and improve your credit score.
Moreover, possessing a high credit limit card can enable you to make large purchases. You can use your credit card to gain rewards or transfer large balances to explore the advantage of an introductory 0% APR offer. The following are some of the guaranteed approval credit cards for bad credit that can lead to lower consumption rates, which can improve your credit scores. They include
- Costco Anywhere Visa Card by Citi.
- OpenSky Secured Visa.
- Discover it Secured.
What Does 0% Apr For 12+ Months Mean
The annual percentage rate, or APR, is the interest rate a credit card charges on unpaid balances. Normally, if you pay your entire card balance by the next due date, you will not face interest charges.
An introductory 0% APR for 12+ months means you wont have to pay interest on the balance during a promotional period of at least 12 months from account opening. Credit cards sometimes make separate 0% introductory offers for purchases and for balance transfers.
For example, the Citi Simplicity® Card currently offers different promotional periods for balance transfers and purchases.
Many cards charge a balance transfer fee that is the larger of a fixed percentage or cash amount. For example, you may see a fee of 3% of the transferred amount or $5, whichever is greater. None of the cards in this review charge retroactive interest on transferred balances that are not fully paid by the end of the introductory period. However, if you pick a card that is outside of this group, check the fine print before applying.
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How Much Savings After 24 Months
| Balance | |
|---|---|
| $2,000 | $2,700 |
- If you have a $2,000 balance with a 15% interest rate and a $40 minimum payment, you can expect to pay about $415 in interest after 18 months. If you continue to make the monthly minimum payment for 24 months, you will pay nearly $550 in interest.
- If you have a $5,000 balance, with a 15% interest rate, and a $100 minimum payment, you can expect to spend nearly $1,000 in interest after 18 months, and more than $1,300 in interest after 24 months if you pay the minimum.
- If you have a $10,000 balance, 15% interest rate, and a $200 minimum payment, you can expect to pay over $2,000 in interest after 18 months, and more than $2,700 in interest after 24 months.
In other words:
Choosing a 0% APR credit card for 24 months can save you hundreds of dollars, and it helps you keep your balance lower.
Without interest dragging you down for so many months, you can focus on paying off your credit card earlier, before the interest piles on.
Who Should Skip A 0% Intro Apr Credit Card
- The rewards seeker. While some 0% intro APR credit cards do offer rewards, you can usually find more lucrative programs attached to traditional or premium rewards credit cards.
- The payment procrastinator. The 0% interest only lasts for the duration of the introductory period, and once it ends, the card will revert to its regular APR, which may not be low . If you tend to carry a balance month to month, a low interest credit card could be a better option.
- The heavy-debt consolidator. There are limits to how much debt you can transfer over to a credit card with a 0% intro APR offer. And if you cant pay off that debt before the introductory period ends, your balance could get hit with high interest charges. If youre carrying a heavy debt on multiple credit cards, a personal loan may be a better debt consolidation method for you.
For more help finding a card that suits your needs, check out our guide on how to choose a 0% intro APR credit card.
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Best For Balance Transfer: Citi Diamond Preferred Card
- Best features: If paying off debt is your top priority and you have good or excellent credit, the Citi Diamond Preferred Card could be a lifesaver. The card comes with an extremely long 21-month introductory APR offer on balance transfers completed within the first 4 months, after which your APR is a relatively low 16.74% to 27.49% . Want to learn more? See how expert, Emily Sherman, uses the Citi Diamond Preferred card. Also, for a limited time earn a $150 statement credit after you spend $500 on purchases in the first three months of account opening.
- Biggest drawbacks: The lack of a base rewards program limits this cards long-term value. Plus, the balance transfer fee will cost consumers more than the standard 3% fee found with other cards.
- Alternative: If you think you can pay off your balance transfer faster than 21 months, the versatileCiti® Double Cash Card may be a better choice. Its intro APR offer isnt as long, but it has better value thanks to a rewards program that earns up to 2% cash back on purchases .
- Bottom line: The Citi® Diamond Preferred® Card is best for someone focused on paying off debt and who isnt looking for a rewards credit card that offers points or miles.
Read our full Citi Diamond Preferred Card review or jump back to this cards offer details.
Chase Freedom Unlimited Card Pros & Cons
| Pros | Cons |
|---|---|
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The Different Types Of Credit Card Apr
APR is short for annual percentage rate and is the rate youll pay in interest if you are carrying a balance on your credit card. If you want to know more about how credit card APRs work, one key thing to note is not all APRs are the same.
Youll see various APR terminology throughout your cards terms and conditions. The APR or interest rate may be different depending on how it is implemented with the card. For example, the regular, ongoing APR you qualify for is different from a penalty or cash advance APR.
Regular or ongoing APR
Regular or ongoing APR is the standard interest rate issued to you for purchases with the credit card, when you carry a balance. The regular APR is often a variable rate, often determined by the federal prime rate and your credit score. The regular APR is the interest rate charged for purchases if there is no promotional APR offer.
Purchase APR
The purchase APR is the interest rate applied to purchases only. Youll often find credit cards with promotional purchase APR periods, often for zero percent interest on purchases for a specified period of time. When the promotional period has expired, the rate will revert to the regular purchase APR for your card.
Balance transfer APR
Cash advance APR
Penalty APR
Bank Americard Credit Card
Not only will you receive interest-free purchases for the initial term of getting approved for this card, but you will also get the same offer for any balances that are transferred in from other accounts. There is no annual fee with the card, which is a nice feature as well. There is also no interest rate penalty if you happen to pay your bill late. This card allows you to access your FICO score at any time right from their mobile app.
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How Do 0% Apr Credit Cards Work
A 0% APR credit card offers no interest for a set amount of time, usually 12 to 20 months. During the intro 0% APR period, you won’t be charged interest on new purchases or balance transfers. These cards can help you consolidate credit card debt with a balance transfer, pay for new purchases over time without incurring interest charges or both.
Balance transfer credit cards may set a limit on the amount of debt you can transfer, which is often less than your overall credit limit. Plus you may be charged a balance transfer fee, typically 3% per transfer.
Learn more: How 0% APR cards work and how to complete a balance transfer
The Large Expense Planner
Maybe you need to replace your broken washing machine and dryer or an old personal computer thats undergone one too many software updates. It could be an upcoming medical procedure not fully covered by health insurance. In all scenarios, youll buy yourself some time to pay off those purchases and save on interest charges during the introductory period with a 0 percent intro APR card.
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What Is A Zero
When a bank issues a credit card, they charge the cardholder interest for borrowing money. However, to entice new customers, certain credit cards will offer promotional periods where the interest rate will remain at a fixed 0% for a defined period of time. This period with 0% interest is referred to as the introductory APR period. After the promotional period has expired, the cardholder will be charged a different APR, which is considered the ongoing APR.
Because the cardholder does not incur any interest charges during the 0% APR promotional period, it offers a unique advantage to save hundreds, possibly thousands of dollars in interest fees. Cardholders may use a zero-percent intro APR card as a strategy for making a large purchase where they have several months to make interest-free payments or for transferring high-interest credit card debt so they can concentrate the entire monthly payment towards the balance.
While 0% interest credit cards usually require the cardholder to have a good or excellent credit score, when used correctly they can help you avoid additional costly interest charges.
How 0% Apr Credit Cards Work
A 0% APR credit card charges no interest for a predetermined amount of time, usually 12-24 months. During this introductory period, you will carry out balance transfers and new purchases at no charge. You can use these cards to consolidate your credit card debt. Furthermore, to qualify for most 0% APR credit cards, you will need to have a good or excellent credit score. If you have fair or poor credit, you will have a very hard time qualifying for a credit card interest-free period.
The following are some viable alternatives to 0% introductory APR credit cards for 24 months:
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No Interest Credit Cards For 24 Months: Best Options
can become one of your greatest assets if you are looking forward to purchasing a new item or consolidating an old loan. However, these financial cards are well known for having some of the highest interest rates compared to other financial products. It is worth noting that some of the best credit cards charge no interest on balance transfers, new purchases, or both for very long periods, with some up to 24 months.
What We’ll Cover
Currently, there are no 0% APR credit cards for up to 24 months. The closest offer you will find is a 0% interest credit card for up to 23 months on both billing transfers and purchases. It is, however, noteworthy that some credit cards, such as the Amazon.com Store Card, charge no interest for 24 months or even longer.
However, this is not true interest, but deferred interest. With deferred interest, if you fail to pay off your full balance by the end of your promotional period, you will be required to pay the accrued interest over the 24 months at the regular interest rate of the credit card. Read along to discover the best credit cards with the longest 0% introductory APR periods.
