Managing debt is a difficult task for many people. When credit cards are involved, the process becomes even more complicated.
In many cases, the applicable interest rates on some cards can become an anchor to one’s ability to handle their monthly payments without creating stress.
One of the best ways to get credit card debt under control is through the use of 0 interest credit cards.
What Are Zero Interest Credit Cards?
Zero interest credit cards have an 0.00% APR for a specified amount of time.
Most 0 APR credit cards provide 12-18 months interest free to new card members. This rate is usually applicable to all purchases and transfers made during the introductory time.
While many cards charge a transfer fee, the interest savings will usually more than compensate for any of the fees incurred.
Credit card companies use this promotion as a means to pull customers from other issuers in a highly competitive industry.
It also provides customers with a great opportunity to make big ticket item purchases (appliances, vacations, furniture, etc.) without incurring interest for a specific length of time.
What Characteristics Are Found in the Best Zero Percent Credit Cards?
The most preferred zero percent credit cards are those that provide the longest 0.00% APR period.
Another important feature is the conversion rate that becomes applicable when the 0.00% introductory period expires. The lower this rate, the more popular the card will be.
It is noteworthy that some cards will revert to a fixed rate, while others may use a variable rate. There may be a little bit more risk involved with variable rate cards since they put the customer at the mercy of economic factors relevant at the time the rate goes into effect.
The best cards also have low transfer fees, grace periods and various rewards programs.
Here are the best 0 APR credit cards on the market at this time:
- Citi Simplicity® Card – This is a popular card that seems to have all the advantages. The 0.00% APR on transfers and purchases is in affect for 18 months with a conversion rate that is very competitive. Transfers fees are only 3%, significantly lower than most other cards. The credit card company forgoes late fees and charges no annual membership fee.
- Capital One® – Capital One® Platinum Prestige Credit Card – With this card, both transfer balances and purchases hold at 0.00% APR until October of 2015. After that, a variable rate of 10.9%-18.9% goes into effect. The other great benefit is no annual fee.
- Chase Slate® – The big selling point on this card is the 0.00% transfer fee that is in affect on all transfers for the first 60 days. The APR is 0.00% for 15 months on both transfers and purchases. After the introductory period has expired, the APR goes to 12.99%, 17.99%, or 22.99%.
- Citibank – Citi® Diamond Preferred® Card – 0.00% APR on purchases and transfers for 18 months with a conversion rate of 11.99% – 21.99%. The transfer fee is the greater of $5.00 or 3% of transfer balance. The card also awards Citi Easy Deals Points on purchases, good for online shopping with many retailers.
- Chase Freedom® – This card provides a lot of benefits. The 0.00% APR is good for 14 months on purchases and transfers followed by a transfer rate of 13.99%-22.99% APR. The rewards programs pays a $100 cash bonus on $500 spent in the first quarter, 5% cash back on quarterly category charges, and 1% on all other charges.