How To Choose A 0% APR Credit Card

Zero-percent APR bank cards allow you to keep away from paying curiosity on purchases, stability transfers or each for a restricted time. Nevertheless, particular person card particulars range fairly a bit from there, with some providing longer introductory durations and extra perks than others. Charges can range too, together with annual charges and stability switch charges.

Listed below are among the high options it’s best to take into account earlier than making use of for a 0 % intro APR bank card.

Determine what kind of provide fits your wants

Zero-percent intro APR bank cards lengthen their affords to purchases, stability transfers or typically each. In some instances, playing cards will even lengthen zero curiosity to purchases and stability transfers on totally different timelines.

The Citi® Diamond Most popular® Card, for instance, affords 0 % intro APRs on purchases for 12 months and on stability transfers for 21 months (offered that the stability transfers are accomplished inside 4 months from account opening).

Steadiness switch provide

If you happen to’re trying to pay down your bank card debt by consolidating all of it onto a brand new stability switch bank card, you’ll want to ensure the cardboard you’re contemplating has a lovely provide on stability transfers. This usually implies that the provide ought to be just right for you by way of each the size of the intro interval and the stability switch charge you’ll should pay.

Buy provide

If you happen to’re trying to finance a big buy and don’t wish to fear about paying curiosity when you carry a stability, then you have to deal with the cardboard’s buy APR and different related particulars. You received’t have to fret a couple of stability switch charge, however you might need to fret about particulars like the cardboard’s overseas transaction charge when you’re buying an merchandise from one other nation.

Both means, make sure you be taught what kind of provide the cardboard is promoting so you may plan accordingly.

Discover out the size of the intro APR provide

Some of the necessary particulars is the size of every card’s 0 % intro APR interval. The place most bank cards on this area of interest lengthen zero curiosity for no less than 12 months, some playing cards provide 0 % intro APRs for as much as 21 months.

The size of the provide issues as a result of it’s how lengthy you’ll keep away from curiosity; it describes the period of time earlier than your bank card rate of interest resets to the common APR.

For instance, in case you have a bigger buy to make and wish not more than a yr to pay it off, any variety of 0 % intro APR bank cards with intro affords for 12 months might work. If, however, you’ve got 1000’s in high-interest bank card debt you have to repay, search for the longest 0 % intro provide you could find.

Pay attention to any provide limitations

Learn your card’s advantageous print to be taught concerning the limitations related to every card provide. Some playing cards will rescind their 0 % intro APR affords solely when you miss too many funds or don’t take note of their different guidelines.

For example, the Wells Fargo Mirror® Card comes with a 0 % intro APR for 21 months from account opening on purchases and qualifying stability transfers, adopted by a 18.24 %, 24.74 %, or 29.99 % variable APR. However like all playing cards, there are extra limitations concerned. These stability transfers have to be made inside 120 days to qualify for the intro price, and a stability switch charge of 5 % or a minimal of $5 will apply to every stability switch.

Ensure you perceive the charges

Sure charges can change your opinion on whether or not a card will probably be best for you. Among the commonest forms of charges related to 0 % APR playing cards embody:

• Annual charges. That is the charge you pay yearly to hold the cardboard. Most bank cards with a 0 % intro APR received’t cost an annual charge, however this isn’t all the time the case.
• Steadiness switch charges. As beforehand talked about, this charge is charged everytime you full a stability switch. Most playing cards on this area of interest cost a stability switch charge of three % however some cost 5 % as a substitute. By selecting a card with the bottom charge you could find, you’ll decrease the prices concerned with transferring a stability.
• International transaction charges. This charge is charged everytime you make a purchase order the place a forex conversion is concerned. If you happen to plan to make use of the cardboard abroad or with non-U.S. corporations on-line, you would possibly run into this charge. If you happen to do journey steadily, attempt to keep away from playing cards that cost overseas transaction charges (or just pull out one other card in your pockets when overseas).

Search for bank card rewards

Many bank cards with intro APR affords additionally earn rewards, though you’ll usually sacrifice the size of your zero-interest provide for this perk.

An instance of a well-liked money again bank card with an intro APR provide is the Chase Freedom Flex℠*. The Freedom Flex affords quite a lot of money again classes, together with 5 % on activated bonus class purchases every quarter (as much as $1,500 in purchases, then 1 %), together with 0 % intro APRs on purchases and stability transfers for 15 months. You’ll pay 20.49 % to 29.24 % variable APR after that introductory interval ends. Moreover, a 3 % intro stability switch charge with a minimal $5 applies for transfers made within the first 60 days.

One other common card is the Citi Double Money® Card. This flat-rate money again bank card affords as much as 2 % money again on all spending (1 % once you make a purchase order and one other 1 % once you pay it off). When it comes to an introductory APR provide, you’ll get a 0 % intro APR on stability transfers for 18 months, adopted by an 19.24 % to 29.24 % variable APR.

Look into extra cardholder perks

Make certain any bank cards you’re contemplating provide perks that you really want or might use. Widespread advantages embody: 

Determine what credit score rating you want

When you’re trying out all the cardboard particulars, you must also take into account whether or not you’ve got an opportunity at being authorized for the 0 % APR card you need. One of the best playing cards on this class usually require good to glorious credit score, so not everybody will qualify.

Earlier than you apply, verify your credit score rating to make sure you stand an opportunity at being authorized.

6 inquiries to ask when evaluating 0 % APR playing cards

As a remaining guidelines, listed here are questions it’s best to ask your self when evaluating 0 % APR playing cards to seek out the perfect to your circumstances, finances and monetary objectives.

1. Would you like an intro APR for purchases, balances — or each? Relying on the cardboard, your intro APR might apply to solely purchases or solely transferred balances. Understanding the way you’ll use the intro APR will help you slender down your choices.
2. How lengthy does the intro APR final? How lengthy an intro APR provide lasts might not matter an excessive amount of to you if you wish to repay your stability in a comparatively quick period of time (as an illustration, 12 months or much less). You probably have a whole lot of high-interest debt to consolidate, nonetheless, it’s best to know that longer affords offer you extra time to make progress.
3. What variable applies after the intro provide ends? Know the variable price you face when your 0 % interval expires. And brace your self: The typical card rate of interest is slightly below 21 %, but many 0 % intro APR cost even greater charges than that.
4. Do you wish to earn rewards? For probably the most half, incomes rewards when you take pleasure in a 0 % intro APR on purchases could be a good mixture so long as you’ve got a plan to repay your balances earlier than the introductory APR provide ends and charges revert to the variable APR.
5. What charges will you pay? If you happen to’re consolidating debt, examine playing cards primarily based on their stability switch charges — usually 3 % or 5 % of the quantity of debt you switch. And verify whether or not a penalty APR applies when you make a late fee.
6. Can you retain the cardboard for the lengthy haul? The typical size of your credit score historical past makes up 15 % of your credit score rating. Choose a bank card with perks you should utilize in the long term — or no less than one with no annual charge — so that you received’t should weigh the professionals and cons of protecting the account open every year.

The underside line

With so many 0 % intro APR playing cards to select from, it could really feel overwhelming to slender down the perfect to your wants and finances. However by making an allowance for the credit score scores required for approval, charges related to the playing cards, extra card perks and the provide size that most accurately fits your payoff timeline, you may examine playing cards that suit your circumstances greatest. Begin with our greatest 0 % intro APR bank cards available on the market for 2024 to keep away from curiosity for as much as 15 months or longer.

*Issuer-required disclosure assertion
Details about the Chase Freedom Flex℠ has been collected independently by Bankrate. Card particulars haven’t been reviewed or authorized by the issuer.