Credit cards offer a secure and convenient method of payment, but if there is one thing that most cardholders hate, its paying credit card interest. As unsecured loans, credit card interest tends to be higher than a home, car, or student loan.
To make matters worse, cardholders who carry a balance, will pay interest on their average daily balance, which includes each purchase from the moment it is bought. Thankfully, there are some credit cards that feature interest free, promotional financing on balance transfers, new purchases, or both. With these offers, cardholders can take a break from paying credit card interest for as long as 18 months.
Does this sound too good to be true? It's not, but there are still a few minor downsides that cardholders need to be aware of. First, those who apply for one of these offers will only be approved if they have good or excellent credit. Next, most 0% APR balance transfer offers require cardholders to pay a 3% balance transfer fee, which is just added to their new balance. Finally, those who use these promotional financing offers to incur more debt or postpone paying off the balance that they already have will be worse off in the long run. These offers are best used in conjunction with a sound budget and a realistic plan to pay off debts before the promotional financing period expires.
Here are the top 0% APR credit card offers available today:
Discover it - 18 months of 0% financing on balance transfers and 6 months on new purchases
This offer for the Discover it card features 18 months of interest free financing on balance transfers, with a 3% balance transfer fee. This is the longest promotional financing period available for 0% APR balance transfers. In addition new purchases receive six months of interest free financing.
The Discover it card is far more than a great promotional financing offer. Cardholders receive 1% cash back on all purchases, and 5% cash back at select categories of merchants that change each quarter. Customers also receive a copy of their FICO credit score printed on each statement, so that they can keep track of their credit worthiness. Other benefits include having their first late payment fee waived, no penalty interest rate, and 100% US based customer service. There is no annual fee for this card.
Discover it - 14 months of 0% financing on balance transfers and new purchases
This Discover card offer features 14 months of interest free financing on both new purchases and balance transfers, with a 3% balance transfer fee. While the other 18 month balance transfer offer makes the most sense for those who have a large balance that they are trying to pay off, this offer is targeted at those who have a smaller existing balance, and need the flexibility to continue making interest free purchases beyond six months. Like the other offer, there is no annual fee for this card.
Citi Diamond Preferred Card
This card features 18 months of 0% APR promotional financing on both new purchases and balance transfers, with a 3% balance transfer fee. In addition, this card offers the kind of perks and benefits more commonly seen on expensive rewards cards rather than a product with a competitive promotional financing offer. For example, cardholders receive access to a personal concierge service that can make restaurant reservations, offer directions, or book travel 24 hours a day. Customers are also provided with extended warranty coverage, retail purchase protection, and a trip cancellation or interruption policy. Despite all of these features, there is no annual fee for this card.
Citi Simplicity Card
Like Citi's Diamond Preferred card, the Simplicity card offers 18 months of 0% APR promotional financing on both new purchases and balance transfers, with a 3% balance transfer fee. But instead of offering as many travel insurance and purchase protection options, this card features no late fees and no penalty interest rate. Make no mistake, cardholders should still pay each month's payment on time, but if they do not, the penalties are not as harsh as they are for most credit cards. Nevertheless, there is still no annual fee for this card.
