Zero interest credit cards are very suitable for people looking for good balance transfers, trying to build credit or want a rewards card without the hassle of annual fees. What are the zero credit cards, what is their benefits?
In the previous post, Info Credit Free introduces people to some of the necessary information that is useful for getting online credit card payment fee in the US, to get more information people can read the article Some tips for lowering the online credit card payment fee. Now, let find knowledge about the zero interest credit cards in the post today.
ZERO INTEREST CREDIT CARDS
Just like a lot of article posts such as pre-approved credit cards, instant approval credit cards, low-interest credit cards, best credit card offers…, this post about zero interest credit cards also includes some main parts. They are:
1. What are the zero interest credit cards?
The APR card introduced zero interest is an unprofitable product for a certain period of time, sometimes up to 18 months or longer. These are great cards to pay the card balance (or two) without incurring any additional interest. They are also good for debt consolidation into a single payment. These cards can sometimes provide 0% APR when purchased within a limited time.
A 0% referral APR means that you do not have to pay interest for a certain period of time for a credit card balance transfer, purchase or both. With balance transfers, you can avoid the costs of reducing interest rates, which can reach thousands of dollars over time. For example, if you have a balance of $ 3,000 on your card and you are paying 17% APR, it will take you 126 months to pay the minimum payment each month.
That includes $ 3,000 plus $ 2,241 in interest. By using a 0% introductory APR card, you can avoid the $ 2,241 fee, provided you have to pay off the debt before the offer ends. The 0% APR card can sometimes be used to make purchases, which is very convenient if you have a large buying deal coming up.
2. Some advantages of the zero interest credit cards
- No interest for a set window: You will pay zero interest when purchasing items during the deferral period. Most credit cards offer six to 18 months without interest on purchases and sometimes also balance transfers.
- Ideal for large purchases. If you want to buy huge items, such as television or vacation, but need a little time to pay off, 0% interest rate card is a great asset. For a limited time, you can bring your balance and pay off your money without interest.
- Useful for reducing high-interest balances. If you are owing a high-interest credit card, you can transfer it to a credit card that provides 0% referral for balance transfer. This gives you a window of time that interest is accrued on your balance, so all your payments will go into the debt itself. This allows you to progress faster in reducing debt.
3. Some disadvantages of the zero interest credit cards you should avoid
3.1. The “universal default” clause.
If your credit card applies a universal default rate, you need to be very strict about sending your payment on time. A late payment may cause your interest rate to change without warning. And this does not apply only to credit cards.
Yes, based on that unique late payment, other creditors can raise your interest rate without notifying you even if you make payments on time.
3.2. The penalty for the unused credit account.
To continue the 0% interest rate for the balance you have transferred, you may have to use a 0% credit card for new purchases to keep your account closed.
This may seem understandable, but you should know that some 0% balance transfer cards impose unreasonably high-interest rates on purchases. However, if you do not use a credit card to buy, you will be fined and may be excluded from enjoying 0% APR when transferring your balance.
3.3. Changes in interest rates
What is the interest rate after the introduction phase ends? If your referral offer lasts only six months, you should be determined to complete your payments within that 6-month period.
If not, you may find yourself facing credit card debt with even higher interest rates than your first item. Also, note that your interest rate may change if you don’t keep up with your monthly payments on time.
3.4. Penalty Fees
In addition to being disqualified to receive a 0% APR, you may even be charged additional fees for missing or late payments with just one payment. If you are about to receive a 0% balance transfer credit card, you should really ensure that you can make monthly payments on time to avoid penalties..
4. The best zero interest credit cards in the US
|Credit Card||0% APR – Balance Transfers||0% APR – Purchases||Regular APR||CreditCards.com Rating|
|Wells Fargo Platinum Visa® Card||18 months||18 months||17.74% – 27.24%||4.4 / 5|
|Capital One® Quicksilver® Cash Rewards Credit Card||15 months||15 months||16.24% – 26.24%||4.0 / 5|
|Chase Freedom Unlimited®||15 months||15 months||17.24% – 25.99%||3.1 / 5|
|Discover it® Cash Back||14 months||14 months||14.24% – 25.24%||3.9 / 5|
|BankAmericard® credit card||18 billing cycles*||18 billing cycles||15.24% – 25.24%||3.9 / 5|
|Bank of America® Cash Rewards credit card||12 billing cycles||12 billing cycles||16.24% – 26.24%||2.4 / 5|
|Citi Rewards+SM Card||12 months||12 months||15.74% – 25.74%||3.0 / 5|
|HSBC Gold Mastercard® credit card||18 months||18 months||13.24%, 17.24%, or 21.24%||3.1 / 5|
|Citi Simplicity® Card||21 months||12 months||16.24% – 26.24%||3.7 / 5|
|U.S. Bank Visa® Platinum Card||18 billing cycles||18 billing cycles||14.74% – 25.74%||4.4 / 5|
This post is about zero interest credit cards. We provide this information to offer you some of the necessary information that is useful for getting the zero interest credit cards. Also if you are looking for information about the credit cards with no annual fee, please refer to The credit cards with no annual fee have A LOT OF advantages you can choose link we just provided in the previous article.
Hillary (Team Content) – Info Credit Free