Credit cards have become a popular financial tool for many people because of their convenience and ease of use. The Annual Percentage Rate (APR) is one of the most important factors to take into account when selecting a credit card. The interest rate on credit card balances is known as the APR, and for those who carry a debt from month to month, it may be a considerable burden. The 0% introductory APR offered by some credit cards, however, can help customers save money on interest payments. In this article, we will cover How To Use The Best 0% Annual Percentage Rate (APR) Credit Cards.
Understanding 0% Annual Percentage Rate (APR) Credit Cards
Let’s first establish what 0% APR credit cards are before learning how to use them. A credit card with a 0% APR offers an introductory period during which no interest is applied to either new purchases or balance transfers. The introductory period’s duration can vary, although it typically lasts between six to eighteen (6-18) months. Any balance that remains after the introductory period has passed will be subject to the standard APR. It’s crucial to remember that not all credit cards with 0% APR are made equal; some can have costs or limits.
How To Use The Best 0% APR Credit Cards
Let’s talk about how to take advantage of 0% APR credit cards now that we have a better understanding of what they are.
- Pay Off High-Interest Debt: The optimal use of a credit card with a 0% APR is to pay off high-interest debt. Transferring a balance from a credit card with a high-interest rate to one with a 0% APR can help you avoid paying a lot of money in interest. You can concentrate on paying off the main debt without accruing interest during the introductory term. Just be careful to settle the account before the introductory period expires to avoid being charged the standard APR.
- Make Expensive Purchases: You can also use a credit card with a 0% APR to make significant purchases that you can’t afford to pay for right now. Using a credit card with a 0% APR can provide you some breathing room to pay the balance in full without incurring interest, for instance, if you need to make a large purchase like a new refrigerator or cover dental surgery. Just be sure to have a strategy in place to settle the balance prior to the introductory period’s expiration.
- Earn Benefits: Numerous credit cards with 0% APR also offer rewards programs that let you accumulate points, miles, or cashback. Making a big purchase or transferring a balance to a credit card with 0% APR can help you earn extra perks, so picking a card with a rewards program can help.
- Use for Emergencies: Another safety net in case of emergencies is having a credit card with a 0% APR. Utilizing a credit card with a 0% APR will provide you time to pay off the balance without incurring interest if you have an unforeseen expenditure, such as a car repair or medical bill.
The Best 0% APR Credit Cards
The following listed below are the best 0% Annual Percentage Rate Credit Cards with detailed descriptions:
- Wells Fargo Platinum Card: For the first 18 months after account setup, the Wells Fargo Platinum card has a promotional APR of 0% on purchases and balance transfers, making it a desirable choice for anyone who wants to pay off debt without collecting interest. Balance transfers conducted within the first 120 days after account opening and new purchases are subject to the promotional period. Following the promotion, the variable APR will range from 16.49% to 24.49%. Along with additional perks, the Wells Fargo Platinum Card provides Auto Rental Collision Damage Waiver, Roadside Dispatch, and Worldwide Automatic Common Carrier Travel Accident Insurance. The “Guide to Benefits” booklet provides a thorough description of these advantages.
- Citi Simplicity Card: Do you dislike paying a lot of interest on your credit card? Do you yearn for a strategy to reduce the cost of interest payments? Simply consider the Citi Simplicity Card. For a limited time, this credit card provides 0% APR, providing you the chance to pay off your debt without accruing additional interest fees. The Citi Simplicity Card is a credit card offered by Citibank, one of the largest financial institutions in the world. It is designed for individuals who are looking for a credit card with a low-interest rate and no annual fees.
- U.S. Bank Visa Platinum Card: A credit card with a 0% APR can be exactly what you need if you want to cut your interest costs. These credit cards are a terrific way to pay off debt or make significant purchases without paying additional fees because there is no interest payable for a set length of time. The Visa Platinum Card from U.S. Bank is one such credit card. You need to have a good or exceptional credit score (usually 670 or higher) to be eligible for the U.S. Bank Visa Platinum Card. The card can be applied online, over the phone, or in person at a U.S. Bank branch. A basic credit card with an introductory APR of 0% on purchases and balance transfers for 20 billing cycles is the U.S. Bank Visa Platinum Card. After that, based on your creditworthiness, the variable APR varies from 14.49% to 24.49%. The card has no annual cost and provides mobile and internet banking, travel and emergency support services, fraud protection, and accident damage waiver for rental cars.
- Chase Freedom Unlimited Credit Card: Chase Freedom Unlimited APR Credit Card is worth considering when thinking of the best 0% APR Credit Cards. The rewards program for the Chase Freedom Unlimited APR Credit Card is one of its main selling factors. You may earn cash back on anything, from groceries to gas to internet shopping, with a limitless 1.5% cash back on every purchase. The Chase Freedom Unlimited APR Credit Card additionally provides 5% cash back on travel booked through Chase Ultimate Rewards, 3% cash back on dining and pharmacy purchases, and 1.5% cash back on all other purchases. After making $500 in purchases with your new Chase Freedom Unlimited APR Credit Card during the first three months after account opening, you can receive a $200 cash bonus.