Having a credit card can help you in making transactions when you’re out of money. It really helps when you’re empty. And to save most of your money, you need to be smart enough to go for a 0% APR (Annual Percentage Rate) credit card. Such credit cards are going to be beneficial for you as it saves a lot of money initially.
You can utilize these 0% credit card offers in extending your period to repay the loan for a higher amount of products such as a car. However, it is still important to pay down your balance within the timeline to not carry forward any balance once the 0% APR ends.
Today, we will learn about some of the best 0% APR and low-interest credit cards of this year, 2021. But before that, let us have a look at the basics first.
Difference between APR and Interest Rate:
APR refers to the Annual Percentage Rate, which is as same as the interest rate. You can term it as a different way to address the interest rate.
Talking about what interest rate is, it is the rate at which your loan amount will be charged.
How does a 0% APR offer works?
You are not going to be charged any interest for your first year of usage. It will be a 0% APR introductory offer for you. Such offers only last for 12-18 months. These cards are mainly benefited for the short term period, for repaying the one-time purchases without the high-interest fee.
It usually works like your standard credit card only. You are going to gain rewards on every purchase. Once the period ends, you’ll have an accruing interest on your balance.
List of 6 Best 0% APR Credit Cards of 2021
1. Citi Simplicity Card
The Citi Simplicity Card is a safe option with about 18 months 0% introductory period. It also has a balance transfer option with 14.74-284.74% variable APR (after 18 months)
You can easily use this credit card to pay off your debts without having any interest or for any big purchases to be made. Since there will be no annual fee, you will be charged as low as 3% on any balance transfer. It may not look tempting for those who like rewards, but it still is not a bad option as you are safe from any penalty APR charges and late fees.
Why choose this?
We have considered this card in our list because it is not that complex. You are allowed to transfer a balance with low rates, and if in case you miss the repayment, you do not have to bear those heavy fees.
2. Capital One Quicksilver Credit Card
This 0 balance credit card allows you a 15 month introductory 0% APR. Once the period is over, you are liable to pay the interest charges 15.49 to 25.49% per annum.
Additionally, it also offers you 1.5% cash back rewards on each of the purchases you make to keep the excitement on. If you have used more than $500 in the initial months, then you are eligible to earn a $200 free cash bonus.
Why choose this?
One reason why we have listed down this name is because of such exciting offers that they provide. In most of the cards, you will not get free $200 by spending such a low amount. Furthermore, you are going to get the annual rewards too.
3. PNC Core Visa Credit Card
Here, you will get the 0% introductory period for your first 15 billing cycles after your account opening, along with the balance transfer facility for the first 90 days.
Although you will not earn any rewards on every transaction, you can earn a $100 bonus after making payments of more than $1000 within your three billing cycles only.
You are also going to get free travel protection benefits with this card. Once the 0% APR offer ends, you will be charged from 9.99 to 19.99% per annum.
Why choose this?
Although the introductory offer period is too short compared to other credit cards on the list, the PNC Core visa card offers a more conventional ongoing APR. You can count on this card to get the bonus of $100 too.
4. Chase Freedom Unlimited Credit Card
If you are here to get the best deal you can make from the 0 balance credit cards list, then picking the Chase Freedom Unlimited Credit Card will be a wise option. It comes with a 15 month introductory 0 interest period offer.
After that, you will have to pay as low as 14.99 to 23.74% interest rate per your credibility. The annual fee for this card is 0, while the cashback offers are 5% on travel and grocery purchases and 3% on drug stores and dining.
If you spend more than $500 within the first three months, you will earn $200 cashback.
Why choose this?
You can make the most of it as, on average, the first-year value of this card is near $450, while for the second year, it is around $250. Due to various cashback offers and this 0% introductory offer, you are eligible to save a big amount.
5. Discover it Credit Card
Discover it stands out solely because of the unusual cash back rewards you will earn throughout the year. Again, it is a 0% introductory APR card for 14 months with a balance transfer facility. After the time period, you will be charged 11.99 to 22.99% per year.
Additionally, you will be earning 5% cashback on each of your purchases ( after spending $1500 within three months). It again comes with no annual fee, and you will be able to use this card nationwide.
Why choose this?
Our reason is the fact that you do not have any timeline given to redeem your cashback. You can do it anytime. And on each of your purchases, you are going to earn something.
6. Citi Rewards+ Credit Card
Citi Rewards+ offers 15 months 0% introductory APR that starts from the date of your first purchase made by this card to the next 15 months.
After that, you will be paying the interest rate of 13.49 to 23.49% based on your score. The balance transfer fee is 3% or $5 ( whichever is greater) per transaction.
You will be earning around 10 points on each purchase made using the 0 balance credit card.
Also, if you have spent $1000 within the first three months of your account opening, you will earn 15000 bonus points equivalent to a $150 gift card.
Why choose this?
With this credit card, you will earn 2x points per dollar on all your purchases from Gas stations and supermarkets. It will be for your first $6000 spent, and after that, you will earn 1x points on every purchase.
Important APR Terms to Know:
Purchase APR: It means that you are not required to pay interest on any purchased item with your credit card during the offer period.
Balance Transfer APR: If you transfer the balance from your 0% APR credit card to your existing credit card, which helps you pay your debts, it is referred to as the balance transfer.
Ongoing APR: Once your introductory period is over, you have to pay a certain APR. It is referred to as an ongoing APR.
Introductory APR: Having a 0% APR offer for your first year is known as introductory APR.
Cash Advance APR: You are allowed to get the cash from the ATM via your credit card. It requires a fee and the interest you have to pay if you wish to take out the cash.
Variable APR: As per your creditworthiness, your APR can be changed. It is a Variable APR.
Can a good credit score help in getting lower interest rates?
The answer is YES; it does help. If your credit score is good and high, your credibility will be high, and consequently, the issuer will lower your interest rates.
There are some of the things you can do to increase your credit score:
Always make payments on time: Having said that, we not only mean paying back your credit card bills on time but all your accounts such as other credit card bills, loans, utility bills, etc. Every payment will count.
Don’t overuse your card balance: Your expenses made from all your credit card should not exceed 30% of your total credit line given.
Don’t apply for many cards: If you are applying for too many cards simultaneously or even doing an inquiry for them, your credit score may have a drop.
Keep an eye on your credit report: You should be checking your credit report but not too frequently. Once in 6 months is fine to go with. You need to check if there are any discrepancies.
Having a 0 balance credit card is a deal that you must not miss as it has numerous benefits. However, it is only for short-term usage; therefore, it is recommended to use it for either paying off your debts or buying something expensive.
With this, you will save your money being wasted on paying the high amount of interest.
All these 0% APR credit cards are listed after in-depth research. You can apply for any of them if you also require a credit card without an interest fee.