Key takeaways ; A 0% APR credit card can be a great financial tool, but there are debt traps to be aware of when using one. ; Always make the minimum payments on your credit card to avoid consequences like late fees, damaged credit and penalty APRs. ; Pay attention to when the intro period ends and have a plan to pay your balance off before the end of the promotional period.
Written by Garrett Yarbrough ; Edited by Courtney Mihocik ; Reviewed by Jason Steele
Key takeaways ; Zero percent APR cards generally offer promotional periods between 12 and 21 months, during which no interest is charged on your qualifying balance. Many consumers use 0 percent APR cards to save on interest, pay off debt more quickly or catch up on their savings. Zero percent APR cards are typically only available to consumers with good or excellent credit, but all users need to be cautious about running up balances they can't pay off before the promotional period expires.
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 ; To get a 0 percent APR card, you typically need a FICO credit score of at least 670 or a VantageScore credit score of at least 661, putting you in the “good” and “prime” ranges, respectively. ; Having a FICO score of at least 740 or a VantageScore of at least 781 increases your chances of approval. ; There are alternatives to 0 percent APR cards, like low-interest credit cards, that also may be worth considering in certain situations.
Vault’s Viewpoint ; With credit card interest rates averaging over 20%, cardholders who carry a balance can rack up quite a bit of extra debt. ; You might be able to get a lower interest rate by simply calling and asking your lender to lower it. ; Balance transfer offers and low APR credit cards are great tools for people needing a lower-interest borrowing option or to pay down existing debt.
Figure out what credit score you need · Determine the type of offer you need · Consider the length of the offer · Take note of any offer limitations · Understand the credit card’s fees · Look for credit card rewards · Consider additional cardholder perks · Where to find the best zero interest credit cards
According to research by TotallyMoney, one in two credit card customers is paying interest on their balance each month, with the average balance increasing by 8.3 percent in the past year. ; However, eligible customers can avoid paying interest by shifting their debt to a balance transfer account, subject to a small processing fee of two to four percent. ; That way, people can focus on repayments, saving money and clearing their balance faster.
Intro offer : $300 Chase Travel℠ Credit + 60,000 bonus points, Rewards rate : 1x - 5x, Annual fee : $95, Regular APR : 20.99% - 27.99% Variable
that zero-percent balance transfer cards remain widely available, is, on its face, surprising,” said Rossman, particularly given the amount of inflation and the number of interest rate...