Guide to selecting a credit card with 0% APR

Credit cards featuring 0% annual percentage rates allow you to avoid interest charges on purchases, balance transfers, or both for a limited time.

It's crucial to understand that each card's specifics can differ greatly, with some providing longer introductory periods and added benefits. Moreover, fees like annual and balance transfer charges can vary.

Before you apply for a credit card with a 0% introductory APR, keep these considerations in mind to make a well-informed choice.

Examine the type of offer and its duration

While most 0% APR credit cards offer no interest for at least 15 months, some provide introductory APRs that can last up to 21 months. The duration of this offer is crucial as it defines the time frame in which you can avoid paying interest, indicating when your credit card's interest rate will revert to the regular APR.

For example, if you plan a large purchase and need around a year to pay it off, any of the 0% introductory APR credit cards with 15-month offers would work well. However, if you’re facing a large amount of high-interest credit card debt to pay down, it’s wise to look for the longest 0% introductory offer available.

Additionally, 0% introductory APR credit cards may provide promotional rates for either purchases, balance transfers, or sometimes both. In some instances, these cards might even feature different zero-interest periods for purchases and balance transfers.

For instance, you might have 0% interest on purchases for 12 months while enjoying a 0% introductory APR on balance transfers for a more extended period of 18 months.

Finally, be sure to read the fine print to ensure you don't overlook any details and that you qualify for the offer you desire.

Are there any rewards or benefits?

Many credit cards that feature introductory APR periods also come with the advantage of earning rewards. However, keep in mind that choosing rewards often means a shorter duration for the zero-interest offer.

Still, there are numerous cards that provide both introductory APR periods and ongoing rewards, although this typically results in a shorter 0% interest period (generally up to 15 months).

Additionally, make sure your card includes perks that match your interests or offer benefits you can fully utilize. Common perks may include extended warranties, cellphone insurance, travel insurance, and purchase protection against loss or damage.

What credit score is required for application?

As you review the card specifics, it's crucial to evaluate your eligibility for the targeted 0% APR card. The best cards in this category typically expect applicants to have a good to excellent credit score, which means not everyone will qualify.

Before you apply, check your credit score to gauge your chances of approval. This will help you understand your creditworthiness and determine which cards you should aim for.

What types of fees should you be aware of?

Finally, make sure that any card you are considering has fees that you are willing to pay. Here are some typical fees associated with 0% APR cards:

• Annual fees: Although most credit cards with a 0% introductory APR do not impose an annual fee, this isn’t universally true. It’s important to confirm whether the card you’re interested in charges an annual fee.
• Balance transfer fees: If you intend to consolidate debt using your new 0% introductory APR credit card, the balance transfer fee becomes crucial. While the majority of cards in this category charge a balance transfer fee of 3%, some may charge up to 5%. Choosing a card with the lowest fee can help reduce your balance transfer costs.
• Foreign transaction fees: This fee is relevant if you plan to use the card for purchases abroad or with non-U.S. merchants online. If you travel frequently, it’s wise to avoid cards that impose foreign transaction fees. Alternatively, consider using a different card while traveling to sidestep these extra charges.

By thoughtfully examining and assessing these fees, you can choose a credit card that fits your financial needs and helps minimize potential costs.

In summary

Choosing a 0% introductory APR credit card can feel daunting. By taking into account factors such as required credit scores, associated fees, extra card benefits, and the offer duration that fits your repayment plan, you can streamline your choices.

It's essential to remember that there are usually several 0% introductory APR credit cards that can meet your needs. Once you’ve researched and confirmed your credit is likely sufficient for approval, make sure to apply before the offer runs out.

Explore our comprehensive list of the top 0% introductory APR credit cards.