Choose the best zero APR credit card for your needs
Are you looking to save some money and enjoy the convenience of a credit card with no interest? Zero APR credit cards are a great way to do that! Especially if you’re able to pay off your balance every month.
by Aline Barbosa
Select a 0% APR credit card based on your financial needs
But how exactly can a 0% APR credit card help you get ahead financially? By allowing you to save money on interest and credit card debt consolidation.
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Below, we’ll show you everything you need to know about annual percentage rates (APR).
From understanding the term fully to selecting the best zero APR credit card to match your spending habits and lifestyle. Read on!
What does APR mean?
A credit card Annual Percentage Rate (APR) is the interest rate applied to borrowers’ unpaid balances.
It’s expressed as a percentage that can range anywhere from 0% to over 30%.
How much you pay in APR will depend on several factors, such as your credit score and the type of card you have.
Knowing your APR is important because it affects how much you’ll owe each month and in the long run.
APR is calculated differently for different types of credit cards.
For example, some credit cards may charge a fixed rate regardless of the borrower’s credit score. Other cards may apply an introductory rate that will increase over time.
And some credit cards may offer a variable APR, meaning the rate will fluctuate with changes in the prime rate.
Your credit card issuer will typically charge you interest when your balance is not paid off in full by the due date for that month’s statement.
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What is intro APR?
Intro APR allows you to take advantage of a promotional rate for an initial period of time that can be anywhere from 6 months to 21 months.
During this period, you are not charged any interest at all – so if you pay off your balance within the intro period, you won’t have to pay any interest.
Once the introductory period ends, the APR will increase to a different rate – so it’s important to make sure that you are able to pay off your balance before then in order to avoid incurring more costs.
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How does a zero intro APR credit card work?
A zero introductory APR credit card is a great way to save money on purchases you need to make.
This type of credit card offers you an interest-free period where you won’t have to pay any interest on your balance.
This can be a great option for large purchases or if you need to consolidate debt.
During this introductory period, you will still need to make minimum payments each month to pay off the balance.
Once the intro APR period ends, the regular APR rate for your card will kick in.
It’s important to consider how much time and effort it’ll take to pay off the balance before the intro APR period ends so that you can avoid paying interest later.
Can a zero intro APR credit card negatively affect your score?
Generally speaking, 0% APR cards have no immediate impact on your overall credit rating — although that doesn’t mean there won’t be any effect down the line.
To start with, you should know that applying for a credit card can temporarily lower your score.
This is due to the fact that credit agencies will check your financial information and history when reviewing your application.
That said, most 0% APR cards won’t affect your score one way or the other — at least not in the short term.
However, it’s important to remember that how you use the card — and particularly how much you spend — can have a significant impact on your future credit rating.
For instance, if you take advantage of a 0% APR offer but don’t stay within your budget, it could lead to high levels of debt.
High levels of debt can hurt your credit score, as it shows that you’re not managing your debt responsibly.
Similarly, missed payments on a 0% APR card will have an impact on your overall rating — so always make sure to stay up to date with your payments.
Do you need a high credit score to apply for a zero APR credit card?
When you apply for a 0% APR card, there is no single credit score that guarantees you will be approved.
Generally, lenders look for scores of 700 and above to qualify for the best interest rates and terms.
However, some financial institutions may offer cards with lower requirements; it all depends on your personal situation and the lender’s criteria.
How to choose the best zero APR credit card for your needs
Picking the best zero APR card for you can be a difficult task, especially with all of the different types and options available.
Fortunately, there are a few things you should consider when trying to choose the best option:
Firstly, consider what type of 0% APR card is most suitable for your spending habits and lifestyle.
For example, some 0% APR cards are designed for those who make frequent purchases, while others are better suited for occasional big-ticket items.
Secondly, check the fees associated with the card. Many 0% APR cards charge annual fees or other miscellaneous charges that can quickly add up over time.
Make sure to read the fine print and understand the costs associated with the card before committing to it.
Finally, consider the length of time you’ll be able to take advantage of 0% APR.
Some cards offer longer periods than others, so make sure you pick a card that will give you plenty of time to pay off your purchases without having to worry about interest rates.
By taking all of these things into consideration, you’ll be sure to pick the perfect 0% APR card for your needs and lifestyle.
How to get an 800 credit score
Having a high credit score can make all the difference when it comes to getting loans, opening up new lines of credit and securing that zero intro APR credit card.
And while many believe that building an 800 credit score is impossible, this isn’t actually the case!
There is plenty you can do to start increasing your credit score even if you think it’s beyond repair right now.
Check the following link for our top tips on how to get an excellent credit score!
How to get an 800 credit score
Learn how to get an 800-point credit score and gain access to the best credit card and loan offers available in the market.
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