Is it Worth it to Get a Credit Card with 0% APR?
A 0% APR credit card can be a great way to save money and even buy things without paying interest for a certain amount of time. But it’s important to know what you’re getting into before you apply for one of these cards.
Getting a credit card with 0% APR is the best thing for you to do. A financial offer with 0% APR lets you save money immediately and pay off your debt without having to worry about paying extra fees. During the introductory period, you can use a credit card with 0% APR to buy things and pay off balances without being charged interest.
In this article, we’ll explain what a 0% APR credit card is, why you might want to get one, and what you might want to avoid.
What Does “APR of 0%” Mean?
The APR and the interest rate are the same for a credit card. “APR of 0%” means no interest is charged.
Most of the time, when you see “0% APR,” it means “introductory 0% APRs”. With these introductory financing offers, new cardholders can pay off a balance over an extended period than one billing cycle without being charged interest. Introductory APRs can be used for purchases, balance transfers, or both. A regular APR kicks in when a 0% intro APR ends, and interest builds up.
How Do Credit Card Deals with 0% APR Work?
Using a card that doesn’t charge interest on purchases is easy. Using your card as you would normally can pay off the balance over time without paying any good as long as the offer is reasonable.
For example, if you buy something for $10,000 on a card that gives you 0% APR on purchases for the first 12 months, you’ll have 12 months to pay it off without taking on more debt. But when the promotional period is over, the card’s standard variable APR takes effect. The card will charge you interest if you still have a balance after 12 months.
To transfer a balance, you have to take a few more steps. When you sign up for a card with a balance transfer offer, you’ll usually be asked if you want to transfer a balance during the application process. If you need help, you can contact the company that gave you the card to start the balance transfer. If the card has a fee for transferring a balance, that can affect how much you can share.
Some cards offer 0% APR on both purchases and transfers of balance. If you’re moving debt to a new card because you need more time to pay it off. It is usually not a good idea to use the card to buy things. You should know that some cards with 0% APR on both purchases and balance transfers have different offer periods. For instance, a card might offer 0% APR for 18 months on balance transfers but only for six months on purchases.
How Do I Get a 0% APR Offer for the First Few Months?
Many credit cards have 0% introductory APR. To get a 0% introductory offer, you must apply for a new card with 0% introductory APR terms and get approved. After you’ve been a customer for a while, card issuers aren’t likely to drop your APR to 0%, but they might if you ask. Issuers may also offer 0% APR balance transfer deals to people who already have a card. These deals may come in the mail or through your online account.
Cards for people with lousy credit rarely have 0% introductory APRs. If you have bad credit, you should improve it first and apply for better cards.
Be wary of credit cards that let you put off paying interest. Even though these may say “no interest” and sound like 0% intro APRs, there’s a big difference. Suppose you purchase with deferred interest and don’t pay it off during the promo period. In that case, you’ll be charged interest on the purchase amount from the purchase date. When a 0% intro APR ends, on the other hand, you’ll only be charged interest on any balance you still have at that time.
How to Get the Most Out of a Card with 0% APR
To get the most out of a card with 0% APR, learn the terms of the offer and make a plan for paying off your debt. Here are three ways to get the most out of a period with 0% APR:
Check the small print: Make sure you read your credit card’s terms and conditions. That includes the small print about the 0% APR offer, like when it ends, how long you have to transfer a balance if there are any balance transfer fees, and what the interest rate will be after the introductory period.
Make a plan for paying it back: You should have a plan for how much you need to pay each month to have a balance of $0 at the end of the introductory period.
Pay off the whole amount: Your goal should be to pay off your balance before the 0% APR period ends. Any remaining credits will be charged the regular purchase APR if you don’t. If your card charges deferred interest, you might get a bill for all the goods you’ve racked up since your purchase date.
Best Credit Card Deals with 0% APR
There are so many cards to choose from, it can take effort to figure out which offers are worth your time. You can find all the best 0% APR credit cards with those that offer 0% on balance transfers. You can also get those that give you long-term savings with no interest on purchases.
A 0% APR credit card could be just what you need if you want to avoid paying interest on purchases and debt. During the 0% introductory period, major credit card companies offer great deals. This includes no interest on all purchases, balance transfers, or both.
But most of these deals give you a certain amount of time to pay off your debts. Pay on time to avoid having to deal with late fees and interest!
Final Thoughts
Credit card companies that offer 0% introductory APR give customers a chance to use their credit cards. They can use it for short-term loans with no interest for purchases, balance transfers, or both. If a balance isn’t paid off by the end of the period, interest can add up quickly.
Credit card interest rates are notoriously high. Therefore, make sure you pay each month enough to pay off your balance during the no-interest period. You could lose the intro rate if you miss a payment or pay it late.
