0% Credit Cards

What Are 0% APR Credit Cards?

Obviously, the best credit cards are the ones that charge the lowest interest and that do so for the longest period of time. Beware of credit cards that start out with high interest rates and that tie the interest rate to any economic indicator. These variable rate cards can cost you a different amount of interest every time the indicator changes.

Some credit cards start you off with a "teaser," a temporarily lower interest rate that can last for as little as 90 days or as long as a year. The teaser rate can actually be 0%! The trick of managing your finances with this type of credit card is to take advantage of the 0% by transfering other balances to that card and paying them off as quickly as you can.

How to find 0% APR Credit Cards

Finding 0% APR credit cards that offer no interest for more than 12 months is quite rate. You can, however, find one that will suit your needs if you look at the selection on our credit card review page.

0% Interest Credit Cards

Getting 0% Interest Rate Credit Cards

The advantage of getting 0% interest rate credit cards is simple; you can use the lender's money for free. There are, however, several things you should understand before you get 0% interest rate credit cards.

• Virtually all 0% interest rate credit cards offer no interest for a limited amount of time, usually 6-12 months.


• Some of these cards do not allow you to transfer balances from high-rate interest cards during the introductory 0% offer period.


• Some 0% interest rate credit cards charge very high balance transfer fees such as origination fees of £50.


• Some of these cards also carry very high penalties for late payments and automatically switch you to a variable APR rate for a late payment.


• Some 0% interest rate cards charge very high interest after the introductory period.

Responsible Use of 0% Interest Credit Cards

It is up to you to read all of the details about every card you are considering. Make sure you understand what the long-term costs will be. If you choose to get 0% interest rate credit cards in order to transfer balances from high-rate cards, make sure you pay as much of the balance transferfed as you can before the introductory period is over.

Try not to get a new credit card to pay off an old one unless you can do so at an extremely low interest rate or 0% interest. Be careful not to transfer a large balance, such as £3,000, if you can't pay it off before the end of the introductory period. This could leave you paying a higher interest rate than the original one on the remaining balance. Be very careful to always know exactly what your credit cards will cost you.