Zero interest credit cards

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Zero interest credit cards are offered by several big name credit card lenders including Citi, Discover, and American Express. If you have good credit, a 0% interest credit card has many perks.

The 0% rate is an introductory rate. In the first 6 or 12 months, you can expect to pay 0% on all purchases. At the conclusion of the interest-free period, you will pay a higher rate. You have to check if the 0% rate is for purchases, balance transfers or both. You have to be careful, and make your payments on time, otherwise they may cancel your 0% rate period and charging you a much higher rate.

Zero interest credit cards like these, are only available to people with a good to excellent credit record. If you currently carry a balance on your credit card, then these credit card rates are important to you.

If you do qualify for a zero interest rate credit card, there are a few things that you should be aware of. There are some credit cards that offer an interest rate such as 0%, but it may be raised after a certain amount of time. Also, credit card companies may charge you an annual fee because of the low interest rates on some of their cards.

Remember that these cards have rates that are calculated on a yearly basis. This annual percentage rate (APR) will either be a fixed rate or a variable rate. Read all the details that are available in the application form when you apply.

If you sign up for a credit card with a zero “teaser” interest rate, such as 7.4%, when the low rate period expires, your existing balance will likely be subject to the regular and substantially higher interest rate. To prevent that, pay in full before the rate increase.

In the Spring 2012 Edition, Nerdwallet recommends the American Express SimplyCash credit card as the longest zero interest credit card with a solid rewards program, and full 12 months with no interest to pay on purchases. And after the zero interest period, the APR begins at a low 12.24%.

NerdWallet’s Best Small Business Credit Cards, Spring 2012 Edition

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