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U R @: Education Center : 0% APR Credit Card Offers : 0% APR Credit Card Basics
0% APR CREDIT CARD BASICS
APR, (which stands for annual percentage rate), is an important factor when deciding what credit card you want to sign up for. Specifically defined, APR is simply the interest rate at which you’ll be paying your credit card bills. Credit cards offer a variety of approaches to APR. Some will offer you a fixed-rate APR, so you’ll be paying at a particular interest rate for the whole time you have a balance. Others will offer you an introductory APR. You start off with a very low interest rate then, after a certain period of time, it changes to a higher rate. However, what you should try to look for are 0% APR credit cards. With 0% APR credit cards, you do not have to worry about an interest rate at all for a little while. In fact, the average time period that 0% APR credit cards will offer this rock bottom rate is usually 6 to 12 months. There are even a few 0% APR credit cards that may offer this rate for as long as fifteen months.
So, why do 0% APR credit cards exist? It’s simple. By offering 0% APR credit cards, companies hope that their customers are going to embark on a spending frenzy. When the phenomenally low APR rate ends, 0% APR credit cards turn into credit cards charging a much higher interest rate. The customer then has to pay at this rate until their balance is paid in full. (Unless, of course, you take advantage of 0% APR balance transfers.)
If you’re considering signing up for a 0% APR credit card offer, it is very important you do whatever you can to pay your balance before the 0% APR term is up. For example, if you get a 0% APR credit card that has a 0% APR for six months, make the minimum for five months and pay the full balance in the sixth month. Try to avoid having a balance that you can’t afford unless it is necessary.
With that being said, if you’re still interested in obtaining 0% APR credit cards, you should look no further than the Internet, and, of course, to SmartCreditChoices. It may be tempting to use one of the offers that come in the mail, but why take the credit card that a specific company wants you to have when you can choose from hundreds of available offers online.
In addition to a 0% APR, there are a number of other factors to consider when you apply for a new credit card, such as the annual fee. With the exception of airline rewards credit cards, most credit cards do not charge an annual fee. If you have good credit and aren’t looking to get 10,000 free frequent flyer miles, you should have no problem getting a credit card that offers a 0% APR for 1 year and charges no annual fee.
Another factor to examine is the rewards program. With the exception of airline rewards credit cards noted above, most credit cards offer some kind of rewards program that gives you points, airline miles or cashback every time you use your credit card.
Here are our top picks in the 0% APR credit card category. You can compare all current 0% offers by visiting the 0% APR credit cards section of SmartCreditChoices.com.
CITI® PLATINUM SELECT® MASTERCARD® |
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- 0% Intro APR on balance transfers for 18 months and 0% Intro APR on purchases for 12 months. After that, the APR will be 11.99%-19.99% based upon your creditworthiness. This APR will vary with the market based on the Prime Rate*
- Extra Cash from Citi: enjoy discounts on gift cards,travel, merchandise and more
- Citi® Identity Theft Solutions
- Secure, free online account management
- No annual fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 12 Months*
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0% for 18 Months*
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11.99-19.99% Variable*
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None
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Good
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DISCOVER® MORE CARD |
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- 0% intro APR on balance transfers for a full 15 months, then the Regular APR
- 0% intro APR on purchases for a full 6 months, then the Regular APR
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants, home improvement stores and more
- Up to 1% unlimited Cashback Bonus on all other purchases
- No Annual Fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 6 Months*
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0% for 15 Months*
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11.99% - 20.99% (Variable)*
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None
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Good
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CITI® DIAMOND PREFERRED® REWARDS CARD |
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- $50 gift card - Redeem 6,000 bonus points after $300 in purchases within 3 months of account opening
- 0% Intro APR on Purchases and Balance Transfers for 12 months. After that, the APR will be 12.99%-20.99% based on creditworthiness*. This APR will vary with the market based on the Prime Rate.
- 5 ThankYou® Points for every $1 spent on purchases at supermarkets, drugstores and gas stations for 12 months, 1 ThankYou Point thereafter**
- Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more
- No annual fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 12 Months*
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0% for 12 Months*
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12.99%-20.99% Variable*
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None
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Good
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Read more related articles: 0% APR Credit Card Offers |
