A 0% balance transfer credit card is a great way to save on your credit card interest rates and eliminate credit card debt more quickly.
Credit cards – love them or hate them, they are a big part of our society. For some people, credit cards are a curse, and for some people they are a blessing. This article will cover both sides of the spectrum and show you how you can either turn that curse into a blessing by transferring your current high interest credit card balance into a 0% interest rate credit card, or how you can further take advantage of credit cards by getting a 0% APR on new purchases, freeing up your cash flow or giving you extra float so you can keep your money in the bank earning interest for you instead of someone else.
The cards in the following lists will benefit you whether you are trying to reduce your credit card debt or take advantage of 0% APR introductory offers. All of these cards are screened and updated for the latest offers, and none of these credit cards comes with an annual fee. Click through the links to arrive at the respective official credit card site for full terms or to apply.
Best 0% APR Balance Transfer Credit Cards
The best balance transfer credit cards offer a low balance transfer fee, a long balance transfer term, and a cash rewards program which is nice to have if you plan on using the card either while you are repaying your balance, or afterward. Some of the best even offer an introductory 0% APR on new charges, and are mentioned in the section below as well. Here are the top balance transfer cards.
Best 0% APR Interest Rate Credit Cards for New Purchases
As mentioned above, a 0% interest rate on new purchases can give credit card users a lot of flexibility when times are tough, when starting a business and they need a cushion for cash flow, or even just to float expenses for awhile and take advantage of using someone else’s money. As these cards are designed for spending, emphasis is given to cash rewards.
Citi® Dividend Platinum Select® Visa® Card. 0% Intro APR on Balance Transfers and Purchases for 12 months. After that, the APR will be 12.99%-22.99% variable based on your creditworthiness*. This APR will vary with the market based on the Prime Rate. This card also features $100 cash back after $500 in purchases within the first 3 months of account opening. Bonus cash back in select categories. You can earn 5% cash back from Citi at Home Depot, Home furnishing stores and home and garden stores between 4/1/13 and 6/30/13, with enrollment. You will also earn a full 1% cash back on all other purchases and eligible cash advances. Citi® Dividend Platinum Select® Visa® Card.
Other great 0% credit cards:
- Blue Cash Everyday® Card from American Express: 0% intro APR on purchases for 12 months. After that, your APR will be a variable rate, currently 12.99%-21.99% with flexibility to pay over time. Earn cash rewards.
Why 0% balance transfer credit card offers are great
If you have credit card debt and want to eliminate it more quickly, then a 0% balance transfer may help you achieve that goal. Transferring your credit card balance to a 0% balance transfer card will move the balance from your current credit card, which probably has an interest rate around 10%-20%, to a new credit card that has an introductory 0% interest rate. Reducing the interest rate to 0% means 100% of your payment goes toward reducing the principle and none of it goes to the credit card issuer in the form of interest. The potential savings can be hundreds, to even thousands of dollars compared to making minimum payments at a higher interest rate.
Why do credit card companies offer 0% balance transfers if it means potential lost income? They make these offers to gain new customers. They may potentially miss out on a little up front money, but there is a good chance that many people will remain good customers or that not everyone will pay their entire balance off at 0% interest. They know that in the long run it will be profitable. It’s a win-win situation for customers and credit card issuers!
Why 0% interest credit cards are great
Another popular credit card offer is the 0% APR interest rate offered by many credit card companies. Why would a credit card company offer 0% interest rates on credit cards? The same reasoning applies as the balance transfer cards – to gain new customers.
There are a couple variations of the 0% interest rates offered on credit cards. They are usually offered only to new customers and in the form of a balance transfer, or a 0% APR introductory period, usually from 6-12 months. That means you don’t get charged any interest on your purchases for the entire introductory period. But watch out – you are usually required to make on time minimum payments or the interest rates will spike.
0% APR offers are great – but use them responsibly!
Credit card debt can be a huge problem so if you are using a 0% balance transfer offer to reduce your interest rates to repay your credit card debt more quickly, then be sure to stick with your plan. It can be tempting to take advantage of the 0% introductory offer, but don’t do it unless you can pay it off in cash.
As for the 0% APR introductory offers – I’m not a fan of carrying a credit card balance, but these introductory 0% APR intro offers can be useful if you having cash flow problems, need to use your credit card in an emergency, want to start a small business and need an injection of capital before the income starts coming in, or if you just want to float your charges and keep your money in the bank earning interest. Again, use them responsibly!
Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.