If you have a tendency to keep a balance on a credit card, but would like to get one where you do not pay any interest, you may be able to get a zero-interest credit card. Another reason to get one would be if you are in debt and need to take a break from paying high-interest rates. You may also be able to get a credit card with zero-interest.
How It Works
A zero-interest credit card, also called a 0% APR credit card, offers zero-interest for anywhere from 12 to 24 months. This unbeatable interest rate is only good during the introductory offer period but it can help you save money. These cards will also often come with several other benefits, making them the ideal card to carry wherever you go.
How This Credit Card Can Help You
Besides enabling you to make purchases without having to pay any interest – even if you keep a balance, there is another powerful advantage. If you have credit card debt, that debt can be transferred to the new card. No interest will be charged on that debt for the duration of the introductory period. This will enable you to pay down your debt faster and save money.
Some zero-interest credit cards will also give you a cash bonus if you spend a certain amount within a designated period after getting the new card. One card that will do this is the Blue Cash Everyday® Card from American Express. It offers zero-interest rates for 15 months. It will give you 20% of your purchases from Amazon back – up to $200. You will need to do this within the first six months of having the card to get this bonus.
Another card, the Capital One SavorOne Cash Rewards Credit Card, gives a cash bonus of $200 if you spend $500 within the first three months. This card also gives you 3% cashback on purchases for dining and entertainment, 2% on groceries, and the cashback offer does not expire as long as you have the card.
The Discover it® chrome credit card gives you a 14-month introductory period and an unlimited cashback match. They give you 2% cashback on all your gas station and restaurant purchases – up to $1,000 per quarter. You also get 1% on all other purchases. Then, at the end of the year, you will get a cash match for all of your cashback rewards.
Check the Fine Print
Reading the fine print on these cards is important. This is because the details will vary from one credit card company to the next. The best kind of 0% APR credit card will give you that interest rate on both balance transfer amounts and on new purchases for the same length of time. Some cards, however, will charge the regular APR on balance transfer amounts and will only give you the zero-interest rate on new purchases.
What to Remember
As you search for the best card for your needs, you need to remember that at the end of the zero-interest credit cards’ introductory offer, you will start paying the card’s regular interest rate. On some of these cards, it may run as high as 25.99%. At that point, make sure you have zero balance left on the card. Or, it may be time to get a new zero-interest credit card before it expires.