Written by India Davis and Garrett Yarbrough ; Edited by Nouri Zarrugh ; Reviewed by Beverly Harzog
Learn how a 0 percent APR credit card can help you save money on interest and how to maximize its benefits in this guide.
Key takeaways ; Before taking on a balance transfer offer to consolidate debt, budget for a monthly payment plan to pay it off. ; Select a balance transfer card that’s suited to your credit score and look into the terms and conditions of the offer. ; Make it a priority to pay off the transferred balance within the introductory 0 percent APR period, otherwise you will face a much higher interest rate once the promotion ends.
Key takeaways ; A purchase APR is the interest rate your issuer applies to your regular credit card purchases. ; Other APRs — such as an introductory APR or balance transfer APR — may take precedence over your purchase APR for a limited time. ; Knowing the purchase APR of each card you hold can help you make smart financial decisions by understanding the full cost of each transaction.
Key takeaways ; Transferring your credit card balance to a new card that offers a 0 percent introductory APR can help you to pay off your debt while reducing the interest you accrue. However, introductory APRs are limited in length — typically to between 12 and 21 months — so you'll need to plan ahead to pay your balance off before the offer expires. If you're still carrying a balance when your card reverts to its regular APR, you have several options and tools to consider, including lump sum payments, debt consolidation loans and new balan ...
no interest for more than a year.” That’s essentially the definition of a 0 percent... a 0 percent intro APR on balance transfers for 21 months, followed by a regular APR between 18.24...
While rising interest rates have been a boon for savers who are now earning upwards of 5 percent with high-yield savings accounts and certificates of deposit (CDs), rising rates on loan products have historically played a role in slowing the economy down. After the Fed decided to maintain its target range for the eighth consecutive time in July 2024, it finally cut rates in September 2024. The Fed’s most recent rate decrease of a quarter of a percentage point in November 2024 could offer some ...
A balance transfer moves high-interest debt to another card, usually one with a 0% intro APR, so you save on interest while paying off debt.
Key takeaways ; A 0 percent intro annual percentage rate (APR) card can help you consolidate and pay down debt faster – without interest payments – if you’re disciplined in how you use it. ; These cards typically come with a balance transfer fee, and you risk losing the 0 percent intro APR if you’re late with a payment. ; If you can’t pay off what you transfer before the intro period ends, you’ll pay much higher interest on the remaining balance.
Key takeaways ; A balance transfer fee is what credit card issuers charge when you transfer debt from one credit card to another. ; Balance transfer fees are typically 3 percent or 5 percent of the total balance you transfer to your new card. ; It’s difficult to negotiate or avoid balance transfer fees, but there are some credit cards available that don’t have these fees. ; Credit cards with no balance transfer fees are usually issued by credit unions, which often have strict eligibility requirements for membership.