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But even money-smart consumers need to make huge purchases from time to time. If you need extra time to pay off something expensive - a new computer or a couch or a car - and don't want to accrue interest, an interest-free credit card may be your smartest option.
With so many card offers available and different fees to consider, it can be difficult to decide which card is right for you. CompareCards.com, a leading provider of credit-card information and resources to help consumers choose wisely, has put together tips on how to choose the best 0% APR credit cards, along with three strong credit-card options to consider.
What to look for in 0% APR credit cards
The biggest determining factor when choosing a 0% APR credit card is the length of the introductory period. The longer you can go without paying a dime in interest payments, the better.
Here are some other key features to look for when choosing your next interest-free credit card:
No annual fee: Consumers should never pay for an interest-free card unless the benefits far outweigh the annual fee. What's the point of saving money on interest-free payments if you have to fork over a fee each year?
High credit line: Having access to a high credit limit will allow you to make those large purchases and can also help with your credit utilization ratio. Although consumers can't choose their credit limit, managing your credit responsibly can help you become a low-risk consumer and make lenders more comfortable with giving you a higher limit.
Additional benefits and features: Credit cards for those with excellent credit will come with benefits such as travel insurance, roadside assistance, and extended warranties.
Which low-interest credit card should you choose?
1. Citi Simplicity Card Citi
Why you should get it: This card from Citi is offering the longest period of interest-free payments around. Most 0% APR credit cards range from 6 to 18 months, but consumers can now get 0% interest for a full 21 months. That's almost two full years of interest-free payments.
What to know:
- 0% APR for 21 months on purchases.
- 0% APR for 21 months on balance transfers.
- A balance transfer fee of $5 or 3%, whichever is greater.
- No late fees, no penalty rates, and no annual fee.
Another similar offer is the Citi Diamond Preferred Card, offering 0% interest for 21 months on purchases and balance transfers. Cardholders can also earn Citi Easy Deals Points for purchases they make with their card and redeem points online.
Citi
What to know:
- 0% APR for 15 months on purchases and balance transfers.
- A balance transfer fee of $5 or 3%, whichever is greater.
- Earn cash back twice; 1% cash back when you buy, and 1% cash back when you pay for those purchases.
- No annual fee.
Why you should get it: Chase Slate has long been known as the best balance-transfer credit card. It is the only credit card on the market to waive the balance transfer fee for the first 60 days of card ownership, making balance transfers completely free.
What to know:
- 0% APR for 15 months on purchases and balance transfers.
- $0 introductory balance transfer fee for transfers made during the first 60 days.
- No annual fee.
- Free monthly FICO score and Credit Dashboard.
Minimizing interest charges
Once your introductory period of interest-free payments has ended, it's important to understand credit-card interest charges so that you can continue saving money. The key is to reduce the average daily balance as much as possible. There's also no need to wait until the statement due date to make a payment. Cardholders should make payments as often as possible.
Learn more about zero-interest credit cards.
This post is sponsored by CompareCards.com.
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