What exactly are the zero percent credit cards?
What is a zero percent credit card, how are they used and which are the top zero percent credit cards?
Zero percent credit cards offer a great way to make large purchases without having to worry about accumulating interest. Sign up for a promotional 0% card, and you’ll pay no interest on your purchases for a set period after signing up.
Unlike a typical credit card that will start charging interest on payments that are less than your statement balance, a zero percent card won’t charge any interest until the established duration of time has expired. Most often, that duration is either 12, 15, or 21 months.
While not all credit card companies offer zero percent cards, those that do can provide peace of mind knowing that you have a grace period to pay down your balance with no additional cost in the form of interest. While some zero-interest cards come with an annual fee or require good credit scores, it’s still often a great deal compared to most other financing and loan options. Taking full advantage of these offers requires savvy budgeting and the fortitude to ensure that the purchase is paid off during the interest-free period.
How Can These Top Zero Percent Credit Cards Help You Meet Your Goals?
Zero percent credit cards offer an incredible opportunity for anyone trying to make big financial gains. By taking advantage of their introductory periods, consumers can make large purchases and spread out payments over several months. In essence, these types of credit cards can serve as interest-free loans.
This type of financial leeway can help individuals in achieving a variety of goals. These include providing enough cash on hand to close on a new home or car, financing an expensive trip that may otherwise be out of reach, chipping away at high-interest debt to reduce monthly payments, or investing in an exciting business venture. Ultimately, with the right card, zero percent cards can serve as powerful tools to help individuals accomplish their goals and dreams.
What Are the Downsides of Zero Percent APR Cards?
Zero percent APR cards can certainly be a great deal if you’re looking to make large purchases or consolidate your existing credit card debt. That being said, they come with some downsides you should consider before signing up for a zero percent credit card.
For starters, the zero percent APR offer typically only lasts for a year, so once that period has expired, all of your remaining balance will be charged at regular rates. Also, banks will often increase your credit limits with zero percent APR cards, which encourages you to charge more than you would have originally planned; this could lead to more debt down the road.
Finally, if you miss a minimum monthly payment, it will not only remove the promotional interest rate on that month’s balance but it also could influence eligibility for other attractive offers from the same bank in the future. This is why it’s important to be aware of the risks when deciding whether or not these zero percent credit cards are right for you.
So now that you know what 0% APR cards are, let’s review some of the top ones:
The CapitalOne Savor card is one of the most attractive 0% APR credit cards currently on the market. The card offers benefits in addition to its 0% intro offer of 15 months.
Users will receive 4% cash back on dining, entertainment, and popular streaming services. That means every time you swipe your card at a restaurant, bar, or cafe, you’ll get 4% back that you can redeem as cash or a credit toward your statement balance. This amounts to huge yearly savings.
This card is foodie-focused. So you’ll reap the greatest benefits if you dine out often or if taking clients out is a major aspect of your business.
CapitalOne Savor offers three tiers: SavorOne Rewards for Good Credit, SavorOne Rewards, and Savor. Applicants with “Good” scores, defined as a range of 670 to 739, are most likely to be accepted for SavorOne Rewards for Good Credit. Applicants for SavorOne Rewards must have “Excellent” credit because this card has no annual membership fee and offers 15 months of 0% APR.
Blue Cash Preferred Card From American Express
The Blue Cash Preferred Card from American Express offers an introductory 0% APR for 12 months from your account opening. There are no membership fees for the first year, and the fee is $95 annually for every year after that.
Some of the additional benefits of the Blue Cash Preferred Card are 6% cash back on purchases made at U.S. supermarkets and select streaming subscriptions. Additionally, you’ll get 3% back at gas stations and a $250 statement credit after making $3,000 in purchases within the first six months of having your card.
You’ll need Excellent or Very Good credit to be approved for this card.
Discover It Cash Back
Discover It offers a very attractive cash-back credit card with no annual membership fee and 0% APR for 15 months after signing up. Additionally, you’ll get 5% cash back on most everyday purchases, including grocery stores, gas stations, and restaurants.
So if you’re looking for an easy and efficient way to save money while earning rewards and get 0% APR, look no further than the Discover It Cash Back card.
Chase Freedom Unlimited
Chase Freedom Unlimited offers 0% APR on purchases and balance transfers made within the first 15 months of account opening. On top of its 0% APR, this card is particularly attractive because it offers unlimited 1.5% cash back on all purchases — and it charges neither an intro fee nor an annual membership.
What Happens When Your 0% APR Intro Offer Ends?
Warning: When a 0% intro APR ends, the remaining balance of your credit card debt may be subject to interest rates that can add up over time. It’s important to take action and pay off your balance as soon as possible so that you can avoid higher interest charges and extra fees. Depending on the type of credit card you have, there may be options available, like taking out a loan or transferring your balance to another credit card with a lower rate. Research all of your options carefully before deciding what works best for you financially. Be sure to review and understand the terms, conditions, fees, and interest rates associated with each option to make an informed decision.